Legal Definitions - vexatious delay

Definition: Vexatious delay refers to an insurance company's refusal to pay a claim without any valid reason or evidence that the claim is not legitimate. This delay can cause frustration and inconvenience to the policyholder.

Example: John's house was damaged in a storm, and he filed an insurance claim to cover the cost of repairs. However, the insurance company refused to pay the claim, citing a lack of evidence that the damage was caused by the storm. Despite John providing photos and eyewitness accounts, the insurance company continued to delay payment, causing him significant stress and financial strain.

Explanation: In this example, the insurance company's refusal to pay John's claim without any valid reason or evidence is an example of vexatious delay. The company's actions caused John frustration and inconvenience, as he was left to deal with the damage to his home without the financial support he was entitled to under his insurance policy.