Motion for Bad‑Faith Claim in Indiana Workers' Compensation

In Indiana, a claimant who believes an employer or insurer acted in bad faith may file a motion for bad‑faith conduct under Indiana Code § 32‑1‑8‑9. The motion seeks a court order compelling the insurer to pay the claim promptly and to provide a detailed accounting of all payments and deductions. The procedure starts with a written complaint, followed by a petition for a hearing. The court schedules a hearing within 60 days of the petition, and the insurer must respond with a written answer and evidence of its payment schedule. If the insurer fails to comply, the court can impose sanctions, order payment, or award attorney fees.

Key Elements of a Bad‑Faith Motion

A successful motion requires the claimant to demonstrate:

• the insurer's refusal or delay in paying a valid claim
• the insurer's failure to provide a detailed payment schedule within 30 days of the claim's filing
• the insurer's failure to produce an itemized accounting of all payments and deductions within 90 days of the claim's filing
• the insurer's failure to provide the claimant with a copy of the payment schedule and accounting within 30 days of the insurer's receipt of the claimant's request

Procedural Steps

1. File the Complaint—the claimant files a complaint alleging bad‑faith conduct in the county court where the claim was filed. The complaint must specify the dates, amounts, and evidence supporting each allegation.

2. Petition for Hearing—within 30 days, file a petition for a hearing. The petition includes the specific relief sought and a brief argument why the court should order payment and sanctions.

3. Insurer's Answer—the insurer has 30 days to answer. The answer may include a defense, a request for more time, or a counter‑motion for summary judgment.

4. Discovery—both parties exchange documents related to the claim, payment history, and insurer policies. Discovery is limited to 30 days unless the court grants extension.

5. Hearing—the court holds a hearing, typically within 60 days of the petition. Both sides present oral arguments and evidence. The judge may issue a summary judgment if the evidence is clear.

6. Order—if the court finds bad faith, it orders the insurer to pay the claim, provide an accounting, and may award attorney fees and costs.

Common Challenges

Insurers often argue that the claimant's allegations are premature or that the claim is already paid. They may also file for a summary judgment to avoid a hearing. Claimants should preserve all correspondence, payment records, and medical bills to counter such defenses.

Impact on Claimants

A successful motion can accelerate payment and expose insurer misconduct. It also establishes a precedent, making insurers more cautious in future claims. However, if the motion fails, the claimant may face additional costs and a prolonged dispute.

When to File

Claimants should file a bad‑faith motion within 90 days of the insurer's first refusal or significant delay. Early filing prevents the insurer from gaining time to prepare a defense and reduces the risk of procedural dismissal.

Legal Support

Because Indiana's workers' compensation statutes are complex, consulting an attorney who specializes in labor law or workers' compensation is advisable. An experienced attorney can help gather evidence, prepare the motion, and represent the claimant at the hearing.