Legal expenses insurance can provide a solution when you need legal help, for example in the event of an employment dispute, a dispute with neighbors or a claim for damages. However, in practice things do not always go well. Sometimes you do not agree with the way your legal expenses insurer handles your case, or with the position the insurer takes. In this article we explain what legal expenses insurance entails, how the coverage works, and what your rights are if you disagree with yourlegal expenses insurer.
What is legal expenses insurance?
With legal expenses insurance you are assured of legal assistance in the event of conflicts. Depending on the policy conditions and the selected modules, this may include:
Labor law (e.g. dismissal or wage claim)
Consumer law (disputes about purchases or services)
Traffic matters (after a collision or damage)
Residential law (disputes with landlord or contractor)
Personal injury cases
In many cases, the insurer engages its own lawyers to handle your case. Sometimes they work together with external lawyers, for example if litigation is required.
Problems with legal expenses insurance
Although the idea behind legal expenses insurance is good, complaints regularly arise about:
Limited coverage: the insurer states that your situation is not covered by the policy conditions.
Conflict of interest: the insurer chooses a certain legal strategy that does not seem to be in your favor.
Slowness: practitioners take a long time to pick up or complete your case.
Limited commitment: the insurer does not want to start expensive experts or procedures, because this would be too expensive.
Refusal of Assistance: Your case will not be processed at all.
This can be frustrating for clients, especially when it comes to important matters such as dismissal orpersonal injury.
Your rights as an insured person
Do you disagree with the approach or decision of your legal expenses insurer? Then you have important rights:
1. The right to an external lawyer (free choice of lawyer)
Based on European regulations (Directive 87/344/EEC) and various rulings of the European Court of Justice, in many casesyou have the right to free choice of lawyer. This means that you are not obliged to accept the legal expenses insurer's lawyers, but can choose an independent lawyer yourself.
Conditions:
This applies in any case when judicial or administrative proceedings have to be conducted.
The insurer must reimburse the costs of the lawyer you choose, up to the amount of the cost limit stated in the policy.
2. Dispute law (second opinion)
Almost all legal expenses insurance policies have adispute settlement scheme. If you do not agree with your practitioner's position, you can request a second opinion from an independent external lawyer. The costs of this are borne by the insurer.
3. Complaints procedure with the insurer
You can formally submit a complaint to the insurer itself. This often leads to a reassessment of your file by another practitioner or department.
4. Submit a complaint to Kifid
If you cannot reach an agreement with your insurer, you can submit your complaint to theFinancial Services Complaints Institute (Kifid). Kifid makes a binding or non-binding decision on your case.
5. Going to court
As a final option, you can go to court to enforce your rights, for example if the insurer refuses to reimburse your external lawyer.
Role of a lawyer in conflicts with legal expenses insurance
AtArslan Advocatenwe have extensive experience with disputes against legal expenses insurers. We can help you with:
Enforcing your right to a free choice of lawyer.
Conducting proceedings against your insurer.
Drawing up a second opinion or counter-expertise.
Recovering damages if you have been financially disadvantaged by the actions of your insurer.
Practical example
An employee is fired and turns to his legal expenses insurance. The insurer does not want to engage a lawyer and states that an in-house lawyer can handle the case. However, the employee wants to litigate and has more confidence in a specialized employment law lawyer.
The European Court of Justice has ruled that in such cases the insuredalways has the right to free choice of lawyer. The insurer must therefore reimburse the costs of the chosen lawyer, within the limits of the policy.
Why choose Arslan Advocaten?
Experienced in conflicts with legal expenses insurance
Specialist knowledge of personal injury, employment law andinsurance law
We ensure that you get the lawyer you need
We are committed to your interests, also towards your own insurer