Insurance disputes and arbitration


When a dispute arises in relation to insurance, the most common reason is that the compensation offered by the insurer does not match the insured’s expectation. The arbitration procedure offers both the insurer and the insured a faster, cheaper and more confidential method of resolving the dispute than litigation.

For matters of insurance, arbitration procedures may differ from the standard. In general an arbitration clause is incorporated into a contract, and stipulates that if any dispute arises in connection with that contract the parties will be bound by arbitration, rather than being able to sue in court. The clause will then go on to specify that each party will appoint a certain number of arbitrators that will make up the tribunal.

This is often different for contracts of insurance. Arbitration clauses here might specify that the insurer has the right to appoint the arbitrators rather than both sides, although the insured may have a right to veto any arbitrator.

If you are in dispute with your insurance company, arbitration is a real possibility. What you should do first is go through the insurance policy and see if there is an arbitration clause. If there is, it should specify the exact procedures for the arbitration, or it may refer you to a third-party publication where these procedures will be listed. It is important to remember that an arbitration decision is usually binding and if you do not follow these procedures, and present your arguments appropriately, the consequences of your actions may be severe.

If you would like to obtain legal advice on insurance arbitration, Caven can put you in touch with a local specialist insurance solicitor free of charge. So, if you have any questions or would like our help in finding local specialist insurance solicitors please call us on 08001 221 2299 or complete the web-form above.

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