ARBITRATION

ARBITRATION alternative dispute resolution process where an impartial third party, known as an arbitrator, settles a disagreement between an insurance company and its policyholder instead of taking the case to court a neutral third party is recruited to settle the dispute. In a policy agreement an arbitration clauses are often included in insurance policies, requiring both parties to submit disputes to arbitration if they arise. Arbitration is commonly used in specific disputes, where disagreements exist about whether an incident is covered under the policy, as well as valuation disputes regarding the amount of compensation owed. Arbitration is the process of using a third party to settle a dispute instead of taking the case to court. Both sides rely on the arbitrator an unbiased individual or panel to come to an appropriate decision based on the facts of the case. -Selecting an arbitrator: Both parties can agree on a single arbitrator or a panel of arbitrators. Independent organizations can help with selection. -Evidence presentation: Each party presents their case, including documents, witness testimonies, and expert opinions. -Arbitrator's decision: The arbitrator issues a binding decision after reviewing the evidence and arguments. This decision may involve awarding compensation, denying the claim, or finding other solutions. The resulting judgement is called an arbitration award. It is legally binding and includes all of the information about the case, along with the arbitrator’s decision regarding fees, damages, or disciplinary actions to resolve the case. Arbitration typically resolves cases faster than courtroom proceedings. An arbitrator can be a person or an organization. Arbitration is applied in insurance when during clams the insured and the insurer do not agree on the claim's amount. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful