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:

  1. 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).
  2. 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.
  3. 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).
  4. Legal proceedings can be commenced against the Insurer if a breach of the terms or conditions of the policy of insurance has occurred.


Contact Us


For more information, contact us at Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.

You can view more information about our dispute resolution services here.

Related Blog – Debt Recovery in Australia: A Step-by-Step Guide to Get Your Money Back

Send us a message

For enquiries, please fill in the following contact form