What could happen if an insurer does not respond within the required timeframe?

When an insurer fails to respond within the required timeframe, it may be assumed liable for the claim. This situation arises from regulatory requirements that dictate timeliness in responding to claims. If an insurer does not address a claim within the legally stipulated period, they may be considered to have accepted the claim by default, thus taking on liability.

In contrast, while the automatic denial of a claim could be a consequence of inaction in some scenarios, it typically doesn't apply broadly under most regulations. Escalation to a legal process may happen, but it usually stems from a dispute rather than mere inaction. Lastly, a policy becoming void generally relates to issues like non-payment of premium or misrepresentation rather than the timing of claim responses. Thus, the implication of assumed liability aligns best with industry practices and regulatory standards in motor insurance.