Video 90 – Chapter 7: Claim Disputes

In this video, we are going to talk about claims disputes. Firstly, let's talk about
mediation. Mediation is a form of alternative dispute resolution in which the parties
agree to submit the dispute to a mediator or a third-party mediator. This is a voluntary
process. The whole idea behind mediation is to sit both parties down and try to see if
both parties can come to a compromised, solution. Now, if the dispute concerns only
the amount of compensation called Quantum, arbitration may be resorted as the next
resort to resolve the dispute. If the dispute is regarding the denial of claims by insurers,
FIDREC may be involved.
Now, insurance contracts have provisions in them by parties to refer to arbitration in
the event of all disputes. Or the clause may specify that the dispute may come in
respect of quantum. Or must be one in respect of quantum. Of course, the other way
of resolving a dispute is litigation. Litigation means going to court. Now, this of course,
could be a very expensive process. And with it comes publicity. So usually, litigation
should be used as a means of last resort to settle a dispute. Arbitration. Arbitration is
a less formal procedure than court litigation and it’s conducted in private. So, the cases
are not reported publicly. Generally, arbitration can also be more cost efficient and it’s
speedier than court litigation.
What's the difference between arbitration and mediation? In mediation, the mediator
helps the parties to settle their disputes by discussing and narrowing and considering
various options. In arbitration, the arbitrator looks into the rights and wrongs and
makes a decision. In mediation, the mediator helps the parties to arrive at an agreed
solution. He does not decide on the outcome. In arbitration, Once the arbitrator has
arrived at a decision, it’s binding on the parties. In mediation, there's no such thing as
a winning party or losing party. The whole idea is to come to a compromised solution
or an agreement. In arbitration, there's usually a winning and losing party.
We have come to the end of this chapter on claims. Thank you.