Constantly hearing “we’re still reviewing your claim” should be your early sign to get in touch with a bad-faith auto insurance attorney. You’ve sent every document, answered every question, maybe even waited through a few “just checking in” calls, yet the insurer keeps stalling.
Insurance companies know that delay wears people down. They count on it. That’s why it’s important to recognize when “reviewing” really means stalling. In Canada, insurers have a legal duty to act in good faith, and when they don’t, you have every right to push back.
At Sidhu Personal Injury Lawyers Edmonton, we’ve helped clients turn endless waiting into real action. If your insurer’s “review” feels more like a runaround, it’s time for clarity and maybe a little accountability.
Key Takeaways:
- When an insurer repeatedly says, “We’re still reviewing your claim,” without clear updates or new requests, it may be a tactic to stall payment and wear you down.
- Under Canadian law, insurers must handle claims promptly, communicate transparently, and avoid conduct that pressures or harms policyholders. Unjustified delays or vague excuses can amount to bad faith.
- If your claim is stuck “under review,” you can demand written explanations, document all interactions, file a formal complaint, or contact a bad-faith insurance lawyer.
The Duty of Good Faith in Every Insurance Claim
In Canada, every insurance contract carries an implied duty of utmost good faith (uberrima fides). That duty under the Insurance Act flows both ways: the insured must provide honest information, and the insurer must handle claims promptly, reasonably, and in good faith. This means:
- Your insurer must investigate your claim diligently.
- They must communicate clearly and without unnecessary delay.
- They must avoid tactics that cause hardship or pressure you into abandoning your claim.
When insurers delay decisions, withhold information, or fail to explain why a claim remains “under review,” they may breach that duty. Courts across Canada have repeatedly said that insurers can’t rely on vague excuses or prolonged silence to avoid paying legitimate claims.
Tired of hearing “We’re still reviewing your claim”? Contact Sidhu Personal Injury Lawyers Edmonton for a free consultation and determine if your insurer is acting in bad faith.
How Delay Turns into Bad Faith Insurance Practice
Not every delay is malicious. Some claims are genuinely complex and require expert assessment. But there’s a clear line between reasonable investigation and stonewalling.
From a legal standpoint, bad faith isn’t simply being slow; it’s about intent and conduct. Canadian courts define bad faith as “a conscious doing of a wrong or dishonest act” or “an improper motive” behind the insurer’s decisions. Here’s where insurers can cross that line:
- Repeatedly saying “we’re still reviewing” without requesting more documents or explaining why.
- Ignoring new evidence provided by the policyholder.
- Failing to disclose coverage positions or internal opinions that impact the claim.
- Delaying payment or investigation to pressure settlement for less.
In Wadhwani v. State Farm, the court emphasized that an insurer must act “promptly and fairly at every step.” That includes ongoing communication and not just a blanket statement that a claim is “under review.”
Why “Still Reviewing” Can Be a Setup by Insurance Companies
Modern bad-faith litigation has shown that delay tactics serve a strategic purpose. A recent analysis in the Mercer Law Review explains how insurers sometimes use “review” status to buy time, hoping claimants will give up or settle cheaply. This phrase may also mask deeper issues:
- Internal disagreement within the insurer about coverage or valuation.
- Inadequate investigation, where the insurer hasn’t done the necessary due diligence.
- Claims handling errors that could expose the insurer to liability, so they stall to limit damage.
In short, “we’re still reviewing” can be a way of avoiding accountability.
When a Delay Becomes Defensible
It’s also important to recognize when “we’re still reviewing” is valid. For example, when the claim involves conflicting expert reports. It’s also justified when coverage limits or exclusions genuinely need interpretation and when multiple parties or overlapping policies exist.
A good-faith insurer will communicate those reasons clearly, provide regular updates, and continue active investigation. Transparency is the difference between due diligence and bad faith.
What You Can Do If Your Claim Is “Still Under Review”
Request a Written Explanation | Ask why your claim remains under review, what information is outstanding, and when you can expect a final decision. |
Document Everything | Keep a record of all calls, emails, and letters. Courts often view detailed timelines as powerful evidence of bad faith. |
Submit a Formal Demand for Action | In Alberta and other provinces, policyholders can issue a written notice requiring a decision or payment within a reasonable period. |
Consult a Personal Injury or Insurance Lawyer | Edmonton injury lawyers can identify when a delay has crossed into bad faith territory and may initiate a claim under the insurer’s breach of the duty of good faith. |
Consider a Complaint to the Provincial Insurance Regulator | While this won’t recover damages, it can apply regulatory pressure on the insurer to resolve your claim fairly. |
How Courts Respond to Bad Faith Practices of Insurance Providers
When bad faith is proven, Canadian courts can impose extra-contractual damages, meaning compensation beyond what your policy covers. These include:
- Consequential Damages: For financial losses caused by the insurer’s misconduct.
- Aggravated Damages: For emotional distress or loss of peace of mind.
- Punitive Damages: To punish and deter malicious conduct.
The Whiten v. Pilot Insurance Co. case is especially well-known. The Supreme Court of Canada upheld a $1 million punitive award against an insurer that repeatedly delayed and misrepresented its investigation, leaving the insured in severe distress. The Court held that such behaviour “offends the court’s sense of decency and deserves rebuke.”
Don’t Wait for Too Long, Contact a Bad Faith Auto Insurance Attorney ASAP
The phrase “we’re still reviewing your claim” can mean one of two things. Either your insurer is taking the time to get it right or using delay as a shield against accountability. If you suspect the latter, you’re not powerless.
At Sidhu Personal Injury Lawyers Edmonton, we’ve seen how prolonged “reviews” can devastate clients already dealing with injury, loss, or financial strain. If you’re facing endless delays, denied claims, or unclear communication from your insurer, reach out. Today’s conversation could be the first step toward holding your insurer accountable and getting the resolution you deserve.
Frequently Asked Questions
What should I do if my claim review becomes an insurance coverage dispute?
If your insurer suddenly questions whether your insurance coverage applies after weeks of “review,” it’s time to press for written answers. Ask for a copy of the adjuster’s notes or the specific section of the insurance policy being used to justify the delay. If they refuse or give vague responses, seeking legal advice makes a difference.
What evidence should I keep if I suspect bad faith in my insurance dispute?
Every piece of written communication, including emails, letters, claim notes, and voicemail logs. Document the exact dates when the insurer requested documents or promised updates. In insurance litigation, this timeline shows whether the company deliberately stalled. Many insurance policyholders win their claims simply because they can demonstrate months of unjustified “review” periods.
Can my insurer delay paying accident benefits if the at-fault driver’s insurer is still being investigated?
No. Your insurer cannot delay your benefits simply because another party’s insurer hasn’t paid yet. Under insurance law, your company must honour its obligations under your insurance policy and pursue reimbursement later. Failing to do so can be considered bad faith, especially in motor vehicle accident cases where prompt payment is critical to recovery and rehabilitation.