Claim Disputes

 

Claim disputes between the Insured and Insurer may arise if the Insured is dissatisfied with the Insurer with respect to the quantum of loss.

The parties involved may go to Court to settle their disagreement, but it is expensive and time consuming.

Alternative methods of settlement are available, these include:

1] Mediation

This is a voluntary process, a Third-party (Mediator) helps to resolve the differences amicably between the interested parties.

The Mediator’s opinion is strictly without prejudice, his role is not to decide whose fault it is but to help the parties understand the whole situation and reach a solution that is acceptable to everyone.

Once an agreement is reached, it is enforceable by Law. if at the end of Mediation the parties are unable to come to an agreement they are free to proceed to Litigation or Arbitration.  

The main mediation centre in Singapore is the “Singapore Mediation Centre” (SMC).

Advantages of dispute resolution by Mediation includes:

- Parties have more control over the outcome

- Parties work together to solve the problem

- Time and Money is saved

- It is a less Formal and Confrontational proceeding

- It is more confidential

 

2] Arbitration

If the dispute is purely on the amount of compensation, Arbitration may be resorted to resolve the dispute.

Advantages of Arbitration includes:

- Less formal and can be completed quickly

- Less expensive

- The dispute is resolved fairly by specialized persons

 

Litigation

When unable to reach an amicable resolution, a claimant may have to resort to Litigation.

Advantages of Litigation:

- Gives the parties access to the knowledge and experience of the Judiciary

- The Court will give detailed reasons for its decisions

Disadvantages:

- Procedural requirements require interviewing witnesses and reconstructing facts after the event thus it is likely to be expensive

- Litigation takes more time, may even take years for a complex dispute