Is it true that insurance companies purposely delay reimbursement?

Is it true that insurance companies purposely delay reimbursement?

Just wondering about it. My sister worked with [car] insurance companies in her previous two jobs, and said that when the claims are larger, they'-ll purposely delay it.I only ask out of curiosity. I submitted a large health claim to my insurance company over eight weeks ago (usual claims take 48-72 hours) and despite my consistent calls, it sort of seems like the insurance guys are sitting on their hands with their thumbs up their butts when it comes to my case.


As a former auto claim adjuster for 10 years and working in 4 different companies, can state the reason for delays on larger claims has to deal with management. As a adjuster, I may have $10,000 authority to settle claims. But if the claim is $10,001, have to submit to a supervisor for authority to settle and also to issue a check. But say the supervisor has $25,000 authority and needs to issue a check for $35,000, now goes to the manager, or then to the VP etc up the chain. While all this is happening, the file could be on someone else's desk waiting for approval or then pass up the chain, but unfortunately the adjuster who handled the file is getting all the phone calls asking when they will receive the check, not management.There could be several reasons for the delay. They may need more documentation from the providers or the claim maybe "coded" incorrectly. The next time you call, ask specific reasons for the delay and if they give you "vague" reasons, then ask for their supervisor for help.… have posted your question on Canada and have posted some links.In the US, if you have an insurance complaint, can go to the insurance department of the state where you live and file a complaint and in most cases, the insurance company MUST file an answer w/in 30 days. Don't know if that applies in Canada, but might want to look into it.good luck


definitely, because it's the insurance business. in order for them to make a profit, they need to do their best to pay you the least and that takes time. they are also counting on that if they take a long time to pay then you will more gladly accept a smaller amount, leaving you to pay the rest. there have even been major lawsuits over insurance claim adjusters convincing you that your claim was worth less than it actually was, and then they would get a bonus or a commission



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