Aggravated and Punitive Damages Claim for Disability Insurance Denials

In the world of long-term disability (LTD) claims, the denial or wrongful termination of benefits can result in not only financial hardship but also emotional distress and significant harm. When facing such challenges in Ontario, it's crucial to be aware of the legal remedies available, including the possibility of seeking aggravated and punitive damages.  The concept of aggravated and punitive damages in Ontario LTD claims can play a significant role in seeking justice and financial compensation.


What Are Aggravated Damages?

Aggravated damages are a form of compensation awarded in Ontario LTD claims to address the emotional distress, mental anguish, and suffering that a claimant has endured due to the insurer's conduct. These damages go beyond simple compensation for the denial of benefits and are intended to recognize the additional harm inflicted by the insurer's actions. Aggravated damages are typically awarded when the insurance company's behavior is particularly egregious, malicious, high-handed, or in bad faith.

Instances that may lead to the award of aggravated damages include:

1. Breach of the Duty of Good Faith: Insurers are obligated to act in good faith when assessing and processing LTD claims. If they engage in conduct that amounts to bad faith or deceit, it may warrant an award of aggravated damages.
2. Unreasonable Delays: If the insurer unreasonably delays processing a legitimate claim, causing undue financial strain and emotional distress, this may be grounds for aggravated damages.
3. Invasive or Harassing Actions: Harassment, threats, invasive surveillance, or other harmful actions by the insurer can be considered grounds for an aggravated damages claim.

What Are Punitive Damages?

Punitive damages, also known as exemplary damages, are awarded to punish and deter the insurer from engaging in similar wrongful conduct in the future. They are reserved for situations where the insurer's actions are not only wrongful but also represent a reckless disregard for the rights and well-being of the insured.
Instances that may lead to the award of punitive damages include:

1. Malicious Intent: When the insurer's actions are driven by malice or a deliberate intent to cause harm or financial loss to the claimant.
2. Reckless Disregard: If the insurer's conduct demonstrates a reckless and callous disregard for the rights and well-being of the insured.
3. Fraudulent Conduct: Cases where the insurer's actions involve fraudulent or deceitful behavior, such as falsifying evidence or engaging in deceitful practices.

Legal Representation For Denied LTD Claims - Get All of the Compensation You Deserve

Navigating the complexities of seeking aggravated and punitive damages in Ontario LTD claims requires the expertise of an experienced lawyer. A lawyer experienced in disability insurance claims can assess the circumstances of your case, help gather evidence, and determine the most appropriate legal strategy.  When dealing with a denied or terminated long-term disability claim in Ontario, it's essential to be aware of your legal rights, including the potential for seeking aggravated and punitive damages. These forms of compensation can not only address the financial hardship but also hold insurers accountable for their wrongful actions.

​Contact us for a free consultation, and let us be your dedicated legal advocates as you seek justice and the financial compensation you deserve.

If you believe that your insurance provider has wrongly denied your disability insurance claim, contact an Ontario insurance lawyer. Iacobelli Law Firm represents individuals that have had their insurance claims delayed or denied. 

For a Free Consultation with an Ontario Insurance Lawyer:

Call 866-234-6093 (Toll Free)