What is an Insurance Dispute?
The Insurance industry has been described as being in the business of selling promises.
A customer pays money upfront and the Insurer promises to pay money in the future if certain events occur.
What Happens When an Insurer Does Not Keep Its Promise?
A breach of contract may have occurred.
There are typically three types of insurance disputes – liability, quantum and indemnity disputes.
What is a Liability Insurance Dispute?
A liability insurance dispute typically involves two parties to an event disputing who is liable or at fault for the event.
An example of this is a dispute about who is at fault for a motor vehicle accident.
What is a Quantum Insurance Dispute?
A quantum insurance dispute involves two or more parties to a dispute arguing about how much loss or damage has been sustained.
An example of this is a dispute about how much the cost of repairs for a motor vehicle accident should be.
What is an Indemnity Insurance Dispute?
An indemnity insurance dispute is a dispute between an Insurer and an insured about whether the policy should respond to (or payout) a claim that has been made under the policy.
An example of this is a dispute about whether or not an Insurer should pay for damages resulting from a Motor Vehicle Accident.
Insurance Indemnity Dispute Resolution
An insurance indemnity dispute can be resolved by:
- An insurance policy may have a dispute resolution clause that details how a dispute may be resolved under the policy (i.e., through mediation or arbitration).
- The Insurer may have an internal review process that can be pursued, failing which the dispute could be referred to other external alternative dispute resolution processes.
- A complaint to the Financial Ombudsman Service may be an option to have the decision of the Insurer independently reviewed, mediated or subject to a binding determination (on the Insurer).
- Legal proceedings can be commenced against the Insurer if a breach of the terms or conditions of the policy of insurance has occurred.
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For more information, contact us at Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.
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