Is the claims administrator required to pay a penalty for delays in temporary disability payments?
. It depends. If the claims administrator sends a payment late, he or she must pay you an additional 10 percent of the payment on a self-assessed basis. This is true even if there is a reasonable excuse for the delay. You could be awarded a substantial extra payment if there was no reasonable excuse for the delay. However, there’s no penalty if the claims administrator sends you a delay letter as explained above.
A. It depends. If the claims administrator sends a payment late, he or she must pay you an additional 10 percent of the payment on a self-assessed basis. This is true even if there is a reasonable excuse for the delay. You could be awarded a substantial extra payment if there was no reasonable excuse for the delay. However, there’s no penalty if the claims administrator sends you a delay letter as explained above.
