In most retail stores the buyer pays whatever price the shop owner has placed on a given item. At a car dealership, however, the customer has a chance to bargain for the price of a selected vehicle. That bargaining process resembles the negotiation process.
Steps in negotiation process
The claimant-lawyer team composes a demand letter and sends it to the insurance adjuster. The adjuster studies that letter, in order to spot any weaknesses in the claimant’s argument. The adjusters’ initial response might offer details on the nature of those same weaknesses.
The personal injury lawyer in Kitchener re-writes the demand, in order to eliminate the weaker points in that document. The re-written letter gets sent the adjuster’s office. The adjuster starts the negotiations by presenting a counteroffer to the amount of money that the claimant has demanded. That opening bid is usually quite low.
As mentioned above, the 2 parties’ bargain over the size of the monetary package that the claimant expects to receive. Claimants respond to the adjuster’s initial offer by making a slight reduction in their demand. In response to that lowered demand, the adjuster puts forward a counteroffer, one that is higher than the one that was presented earlier.
The exchange of demands and counteroffers continues until both parties have agreed to accept one particular figure. At that point, the same 2 parties should be ready to settle their dispute.
Facts that adjusters have been known to question, before the negotiations can get underway
The fact that the terms stated in the document given to the policyholder/defendant make it clear that the purchased policy covers the circumstances that were associated with the reported accident.
The allegations that the policyholder/defendant should be held responsible for the accident and any related injuries. That allegation has implied that the same defendant should be identified as the at-fault party.
Claims made about the nature and extent of the reported injuries: Lawyers try to limit the number of questions about a client’s injuries by not sending the demand letter until after achievement of maximum medical improvement (MMI).
The type of treatment used on the claimant’s injury: Insurance companies prefer to see evidence of treatment that was provided by a medical doctor, instead of a chiropractor.
In addition, insurance companies are more accepting of traditional treatments. Still, insurers must recognize the fact that medical advances have opened the door to discovery of new treatment methods. Questions might be raised following a request for reimbursement of diagnostic procedures. As a general rule, insurance companies do not like to reimburse a claimant for performance of diagnostic procedures. Yet medical science has demonstrated the need for utilization of such procedures in patients with conditions that have slow-to-appear symptoms.