Given that in all too many auto accident cases the seriously injured find that the negligent driver was uninsured or underinsured, many drivers are purchasing “uninsured motorist coverage.” While the numbers of uninsured drivers has gone down as the result of requirements that drivers present their insurance information along with their drivers licenses when stopped for traffic violations, more and more carry only the “statutory minimum” $15/30,000 auto liability policies. If the client has been seriously injured, the negligent driver’s $15,000 policy limit per person will be woefully inadequate, even to pay a fraction of the medical bills, let alone the client’s general damages and past and future earnings losses. In addition to provide coverage where the other party is uninsured, Uninsured Motorist, UM coverage also covers the difference between the amount of the negligent driver’s policy and the policy limits of the UM coverage.
The insurance companies providing UM coverage will sometimes pay the full amount of the claim up to the limits of their policy; however, in many cases they will employ the tactics that those in auto accidents are too familiar, making unjustified offers to settle the claim for but a fraction of the amount due, telling their policy holders that its the last offer they will make, and then refraining from calling them back for months at a time. The insurance bad faith lawyer has a number of legal mechanisms to obtain the full policy limits, and obtain payment quickly. In California, one tool includes making at “Section 998” statutory demand for the policy limits giving the insurance company 30 days to decide whether to pay. The client wins, one way or the other. If the insurance company pays the policy limits, then the client has obtained the full benefit of his coverage and quick payment. If the insurance company fails to pay within the 30 day time period, then it has “opened up its policy.” What that means is that if the uninsured motorist policy has a $250,000 limit, after the insurance company rejects the statutory demand for its policy, now the rights of the claimant against the insurance company are not limited to $250,000. If the seriously injured clients damages, including his general damages, pain and suffering and loss of enjoyment of life damages, his past and future medical expenses and past and future earnings losses are proven up in the millions of dollars, the insurance company will be liable to pay the full measure of damages.
Furthermore, where it can be demonstrated that the insurance company engaged in malice, oppression or fraud in its dealings with the insured, the insured may file a claim for punitive damages, meaning damages above compensatory damages, damages to punish or set an example of the defendant insurer. And often times the punitive damages awarded by the jury will be a multiple of times greater than the award of compensatory damages.
