A legal insurance can be a solution when you need legal help, for example, in a labor dispute, a dispute with the neighbors, or a claim for damages. However, in practice, things do not always go well. Sometimes you may disagree with the way your legal insurer handles your case or with the position that insurer takes. In this article, we explain what legal insurance entails, how the coverage works, and what your rights are if you disagree with your legal insurer.

What is a legal insurance?

With legal insurance, you are insured for legal assistance in conflicts. Depending on the policy conditions and the selected modules, this can include:

• Labor law (e.g. redundancy or wage claim)

• Consumer law (disputes about purchases or services)

• Traffic cases (after a collision or damage)

• Residential law (disputes with landlord or builder)

• Personal injury cases

The insurer often engages their own lawyers to handle your case. Sometimes they work together with external lawyers, for example, if legal proceedings must be conducted.

Problems with legal insurance

While the idea behind legal insurance is good, complaints often arise about:

• Limited coverage: the insurer argues that your situation does not fall under the policy terms.

• Conflict of interest: the insurer chooses a certain legal strategy that does not seem to be in your favor.

• Slowness: handlers take a long time to pick up and finish your case.

• Limited commitment: the insurer is unwilling to start costly experts or procedures because they would be costly.

• Rejection of help: your case is not taken into consideration at all.

For clients, this can be frustrating, especially in important cases such as dismissal or personal injury.

Your rights as an insured party

Do you disagree with the approach or decision of your legal insurer? You have significant 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, you have the right to free choice of lawyer in many cases. This means that you are not obliged to accept the lawyers of the legal insurance provider, but can choose an independent lawyer yourself.

Conditions:

• This applies at least when a judicial or administrative procedure must be conducted.

• The insurer must compensate the costs of the lawyer you have chosen, up to the amount of the cost limit indicated in the policy.

2. The right to dispute (second opinion)

Almost all legal insurance policies have a dispute regulation. If you disagree with the standpoint of your handler, you can request a second opinion from an independent external lawyer. These costs are covered by the insurer.

3. Complaint procedure with the insurer

You can formally submit a complaint to the insurer itself. This often results in revisiting your file by a different handler or department.

4. File a complaint with Kifid

If you don’t succeed with your insurer, you can lodge a complaint with the Complaints Institute for Financial Services (Kifid). Kifid makes a legally binding or non-binding ruling on your case.

5. Go to court

As the last option, you can go to court to enforce your rights, for example, when the insurer refuses to compensate your external lawyer.

Role of a lawyer in disputes with legal insurance providers

At Arslan Lawyers, we have extensive experience with disputes against legal insurance providers. We can assist you in:

• Enforcing your right to free choice of lawyer.

• Conducting a procedure against your insurer.

• Drawing up a second opinion or counter-expertise.

• Recovering damages if you have suffered a financial disadvantage due to the attitude of your insurer.

Practical example

An employee is terminated and turns to his legal insurance. The insurer doesn’t want to hire a lawyer and argues that an internal lawyer can handle the case. However, the employee wishes to litigate and trusts a specialized labor lawyer more.

The European Court of Justice ruled that in such cases, the insured has always the right to free choice of lawyer. The insurer must therefore compensate the costs of the chosen lawyer, within the limits of the policy.

Why choose for Arslan Lawyers?

• Experienced in conflicts with legal insurance providers

• Specialist knowledge of personal injury, labor law, and insurance law

• We make sure you get the lawyer you need

• We strongly support your interests, even against your own insurer