Legal Expenses Insurance Refused: What Can You Do?

Legal expenses insurance is intended to provide legal support in the event of a legal dispute. You pay a monthly or annual premium to be assured of help if you have to take legal action. But what if your legal expenses insurer refuses to provide assistance? It can be an unpleasant situation, especially when you are faced with a conflict and need urgent legal help. In this comprehensive article we discuss the common reasons why legal expenses insurance is refused, and what you can do if this happens to you. We also provide advice about the options you have to still obtain legal help.

What is legal expenses insurance?

A legal expenses insurance offers coverage for legal assistance in the event of conflicts. This can range from labor disputes, contract disputes, personal injury, consumer rights to traffic accidents. By taking out legal expenses insurance, you gain access to legal assistance without having to incur high legal costs. Thinking ahead pays off Although legal expenses insurance does not cover ongoing conflicts, it is wise to take out insurance in advance to cover future legal problems. Consider situations such as a dispute with your employer, a dispute with neighbors or a conflict with a supplier—things that can arise unexpectedly. With legal expenses insurance you are assured of expert help when you need it most, so that you will not be faced with unpleasant surprises.

Reasons why your legal expenses insurance may be refused

There are several reasons why your insurer may decide to refuse legal assistance. Below we explain the most common reasons:

1. Seek legal assistance too quickly

Many legal expenses insurance policies apply a waiting period, often three months, from the inception date of the policy. This means that you cannot seek legal assistance for problems that arise during this waiting period. This clause is intended to prevent people from only taking out insurance when they already know that a conflict is coming.

2. Dispute is not covered

Not all legal disputes are covered by your legal expenses insurance. It is important to read the policy conditions carefully when taking out the insurance. Common exclusions include divorces, business disputes or pre-existing conflicts at the time the insurance was taken out. Insurers apply an important rule: you cannot insure an ongoing legal problem. Legal expenses insurance is intended for unexpected legal issues that arise in the future, not for conflicts that were already known when the policy was taken out. That is why insurers often ask explicitly when taking out insurance whether there are any legal problems at that time. If there are, they are not covered. In addition, there is usually a waiting period of several months after taking out the insurance. During this period you cannot claim legal assistance for new conflicts that arise. The length of the waiting period usually varies from three to six months, depending on the insurer. In this way, insurers try to prevent insurance from being taken out when a conflict is already threatening or taking place.

3. Chance of success too small

Sometimes an insurer refuses to provide legal assistance because they consider the chance of success too small. Insurers often have a 'reasonable chance of success' clause in the policy conditions. If they judge that the case has little chance of success, they may decide to refuse coverage.

4. Engage your own lawyer

Although you have the right to choose your own lawyer in certain cases, many legal expenses insurance companies want you to use their in-house lawyers or lawyers. This helps the insurer to keep costs low. If you engage an external lawyer yourself without the insurer's permission, coverage may be denied.

What can you do if your legal expenses insurance is refused?

If your legal assistance has been denied, there are several steps you can take to obtain legal assistance.

1. Ask for a second opinion

If your legal expenses insurer rejects your case due to a lack of chance of success, you can use the dispute settlement. This means that you can engage an independent lawyer for a second opinion at the insurer's expense. If this lawyer judges that there is indeed a reasonable chance of success, the insurer must still provide legal assistance.

2. The objectivity clause

The objectivity clause offers you the opportunity to engage your own lawyer if you do not agree with the insurer's decision. If the lawyer confirms your position, the insurer must reimburse the costs of this legal assistance, regardless of the outcome of the case.

3. Internal complaints procedure

If you do not agree with your insurer's refusal, you can file a complaint with the insurer itself. Many insurers have an internal complaints department that will reassess your situation. This can sometimes lead to a reconsideration of the decision.

4. Financial Services Complaints Institute (KiFiD)

If you are not satisfied with the outcome of the internal complaints procedure, you can submit your complaint to the Financial Services Complaints Institute (KiFiD). This independent institute handles complaints between consumers and financial institutions, including legal expenses insurers.

5. Lawsuit against the insurer

If all the above steps do not provide a solution, you can choose to start legal proceedings against your legal expenses insurer. In this case, it is wise to engage a specialized lawyer to assist you in this case.

6. Am I eligible for legal aid?

Do you have a low income and are the costs for legal assistance too high? In that case, you may be able to use subsidized legal assistance, also known as 'addition'. The Legal Aid Council assesses whether you are eligible, based on your income and assets. If you meet the conditions, the government will pay a large part of the costs of the lawyer or lawyer. You only pay a personal contribution, which depends on your financial situation. This way, legal help remains accessible, even if you cannot pay for a complete legal procedure yourself.

Alternatives without legal expenses insurance for an ongoing legal problem

If you are already involved in a legal conflict and have not taken out legal expenses insurance, fortunately there are still various options for obtaining legal support.

• Purchase legal assistance directly: You can hire a lawyer or legal advisor yourself to handle your case. Please note that the costs for this can increase considerably, depending on the complexity of the conflict and the specialist chosen.
• Enable Legal Desk For free and independent legal advice, please contact the Legal Desk. Here you will receive practical tips and an initial assessment of your chances. They can also refer you to specialist help if necessary.
• Subsidized legal aid: If your income and assets are limited, it is possible to qualify for subsidized legal aid through the Legal Aid Council. You will then pay a lower personal contribution and receive professional support from a lawyer.

It is wise to inquire carefully about the conditions and options, so that you are not left without help despite the lack of insurance.

Free legal advice without insurance

Do you not have legal expenses insurance but still need legal assistance? Fortunately, there are various options in the Netherlands to obtain free advice:

• Legal Desk: You can contact the Legal Loket for independent and free advice on various legal issues. They will help you get started with practical tips and can inform you about your rights and next steps.
• Law shop: In many places you will find a rechtswinkel. Law students work here who provide free legal advice to private individuals. Small entrepreneurs can also often turn to accessible advice.
• Trade union or interest group: Are you a member of a trade union or interest group? Legal assistance with employment law disputes or consumer issues is often part of membership.
• Municipal authorities: Some municipalities offer consultation hours or legal desks where you can get advice about, for example, rent, benefits, or consumer affairs.

By using these options, in many cases you can submit your legal questions with confidence, even if you do not have insurance.

How do you prevent your legal expenses insurance from being refused?

Prevention is better than cure. Here are some tips to avoid having your legal expenses insurance denied:

• Read the policy conditions carefully: Make sure you know exactly what is and is not covered by your insurance.
• Report new conflicts immediately: Report new legal problems to your insurer as quickly as possible, but pay attention to the waiting period after taking out the insurance.
• If in doubt, ask for advice: Are you unsure whether your dispute is covered? Please contact your insurer immediately to verify this.

Conclusion

Legal expenses insurance provides important legal protection, but there may be situations where your insurer decides to refuse coverage. Whether it's a waiting period, exclusions in the policy or a lack of expectation of success, it's important to know what your rights are and what steps you can take if you're faced with a denial. Hiring an independent lawyer or following a dispute resolution procedure can help you obtain the necessary legal assistance. Do you have questions about the denial of your legal expenses insurance or do you need help obtaining legal assistance? Please contact the experts at Arslan & Arslan Lawyers for free and non-binding advice. We are ready to help you! Contact Onur Arslan:

• Telephone number: 0103115500
• E-mail: [email protected]