Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
An arbitrator reviews testimony and evidence presented by the disputed parties at a hearing and resolves the dispute by issuing a decision that may include an award of money. You can think of an arbitrator as a private judge hired by the disputing parties to resolve their dispute.
Arbitrators are only involved;-
- When only quantum is in dispute or as per the policy terms.
- In the event that the amount exceeds an agreed limit the GM should be notified.
An amount falling in the category of the Major Loss Report is normally notified to the GM, the MD, the claims manager or anyone responsible in the company.
An arbitration panel of five normally set up dependent on their expertise but this varies from one provider to the other.
The fee chargeable will be agreed with the arbitrator at the time of appointment.