Legal expenses insurance can offer a solution when you need legal assistance, for example in an employment dispute, a dispute with your neighbors, or a claim for damages. In practice, however, it does not always go smoothly. Sometimes you disagree 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 your legal expenses insurer.

What is legal expenses insurance?

With legal expenses insurance, you are covered for legal assistance in disputes. Depending on the policy terms and conditions and the modules chosen, this may include:

• Employment law (for example, termination or a wage claim)

• Consumer law (disputes about purchases or services)

• Traffic matters (after a collision or damage)

• Housing law (disputes with a landlord or contractor)

• Personal injury cases

In many cases, the insurer brings in its own lawyers to handle your case. Sometimes they work with external attorneys, for example if litigation is required.

Problems with a legal expenses insurance policy

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 terms.

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

• Delays: case handlers take a long time to pick up or complete your case.

• Limited commitment: the insurer does not want to engage expensive experts or initiate proceedings, because this would be too costly.

• Denial of assistance: your case will not be handled at all.

For clients, this can be frustrating, especially when it concerns important matters such as dismissal or personal 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)

On the basis of European legislation (Directive 87/344/EEC) and various judgments of the European Court of Justice, you have in many cases right to free choice of lawyer. This means that you are not obliged to accept the lawyers of the legal expenses insurer, but can choose an independent lawyer yourself.

Conditions:

• This applies in any case when a judicial or administrative procedure has to be conducted.

• The insurer must reimburse the costs of the lawyer you have chosen, up to the cost limit stated in the policy.

2. The disputes procedure (second opinion)

Almost all legal expenses insurance policies have a disputes procedure. If you disagree with your case handler’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 file a complaint with the insurer itself. This often leads to a reassessment of your file by another case handler or department.

4. File a complaint with Kifid

If you cannot resolve the matter with your insurer, you can submit your complaint to the Financial Services Complaints Institute (Kifid). Kifid issues a binding or non-binding decision regarding your case.

5. Go to court

As a last resort, you can take the matter to court to enforce your rights, for example when the insurer refuses to reimburse your external lawyer.

Role of a lawyer in disputes with legal expenses insurers

At Arslan Advocaten we have extensive experience with disputes against legal expenses insurers. We can help you with:

• Enforcing your right to free choice of lawyer.

• Conducting legal proceedings against your insurer.

• Preparing a second opinion or counter-expertise.

• Recovering damages if you have been financially disadvantaged by your insurer’s conduct.

Example from practice

An employee is dismissed and turns to his legal expenses insurance. The insurer does not want to engage a lawyer and claims that an in-house legal counsel can handle the case. However, the employee wants to litigate and has more confidence in a specialized employment lawyer.

The Court of Justice of the European Union has ruled that in such cases the insured always 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 disputes with legal expenses insurers

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

• We ensure that you get the lawyer you need

• We are fully committed to your interests, even against your own insurer