Professional Liability (Indemnity) Insurance and Enterprise AI Disrupting Consumer Court
Businesses with Professional Liability insurance (PLI), and Professional Indemnity insurance (PII) may be emboldened to engage in practices that exploit consumers for profiteering.
Liability insurance protects businesses from large financial losses due to lawsuits. Therefore, it reduces Financial Risk. This can reduce their fear of the consequences of poor service or harmful practices.
Insurance companies often hire experienced lawyers equipped with enterprise AI tools skilled at delaying or dismissing consumer lawsuits by imposing Aggressive Defense strategies. This can discourage consumers from pursuing legal action, even with valid claims. Litigants suffering from delays often voluntarily drop out by withdrawing litigation. Similarly, with every appeal, many litigants often voluntarily drop out by withdrawing litigation. The use of Enterprise AI Ecosystem by advocates representing corporates against standalone consumers causing disparities in efficiency equity between the two parties is a matter of concern that has been discussed in detail in the blog post Efficiency Equity and Enterprise AI Ecosystem. (Link)
The reduced risk and aggressive legal defense may lead some businesses to prioritize profit over providing quality service or ensuring consumer safety.
It’s important to note that this doesn’t mean all insured businesses act this way. Many operate ethically. However, the potential for this behavior exists, and it’s a concern raised in discussions about consumer protection.
The liability insurance doesn’t cover intentional damage or acts by the business owner or employees. However, this will only be established once the judgment is pronounced. Therefore, throughout the litigation, the insurance company’s advocate representing the business would put up a tooth-and-nail fierce defense to dispose of the litigation in their favor.
Consumer Struggle for Justice as Consumer Commission Order Not Complied On Time. Published in Punekarnews[dot]in on 24 December 2024. (Link)
All this is the outcome of the liability insurance company’s strategy, due to which litigants aggrieved by the delay in obtaining the decreed compensation often voluntarily forswear from escalating and re-appealing. Similarly, with every appeal, many litigants often voluntarily drop out by withdrawing litigation.
Take a look at these two posts, if you like such topics.
Quasi Judicial Patients, & Victims of Insurance Companies Institutional Exploitation. (Link)
Judicial Investigation Friendly Digital Systems, Judibility. (Link)
First in the series is Voltas Air Conditioner’s Deficiency in Service and Profiteering. (Link)
Previous in the series is Cumulative Planned Obsolescence Drifting Over Economic, and Political Cycles. (Link)
Next in the series are Air Conditioner Accidents and Occupational Safety & Health Administration (OSHA) Ratings. (Link)
Last edited on 22 Jan 2025.
