What practice is identified as unfair in the claims process?

The practice identified as unfair in the claims process is lowballing claims. This refers to the unethical tactic where an insurance company offers a settlement that is significantly lower than what the policyholder actually deserves or is entitled to under their policy. Lowballing can occur for various reasons, such as the insurer trying to minimize their financial exposure or discourage the claimant from pursuing a larger payout. It undermines the trust between the insured and the insurer and can create unnecessary stress and hardship for policyholders who rely on the claims process to recover losses or damages.

Failing to respond to claims within the stipulated time frame may disrupt the claims process, but it does not inherently imply a deliberate unfair practice as lowballing does. Refusing to pay without investigation is a concern, as insurers are required to properly assess claims. However, this alone does not capture the essence of unfair treatment as distinctly as lowballing. Delaying payments for an extended period can be problematic, yet it is not as directly exploitative as providing a lowball offer that shortchanges the claimant.