Can I recover these ‘extra-contractual damages’ in every case where benefits have been denied?
No. Again, the denial by the insurer must be shown to have been unreasonable. A legitimate dispute or disagreement over coverage or benefits will likely not give rise to a bad faith claim. Further, in order to recover punitive damages, one must show that the insurer has acted with "oppression, fraud or malice" and, indeed, that its conduct was "despicable". (These are difficult standards to reach.)