Insurance Dispute Resolution Process
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Questions and Answers

What happens if the insured and insurer cannot agree on a single Arbitrator?

  • The arbitration process will be terminated
  • Each party will appoint their own Arbitrator, who will then appoint an Umpire (correct)
  • The insured will forfeit their claim
  • The dispute will be resolved by a court of law

    • What is the purpose of the principle of indemnity in event of a loss?

  • To compensate the insured based on the sum insured
  • To compensate the insured based on the market value of the property (correct)
  • To penalize the insured for under-insuring their property
  • To ensure the insured gains from over-insuring their property

    • What happens if the insured takes up a policy at a sum insured lower than the market value?

  • The average clause will apply (correct)
  • The insured will be compensated based on the market value
  • The insured will be compensated based on the sum insured
  • The insured will not be compensated at all

    • Who decides on the cost of arbitration and awards?

    <p>The Arbitrator, Arbitrators or Umpire</p> Signup and view all the answers

    What is the condition for the insured to commence legal proceedings against the insurer?

    <p>The awards by the Arbitrator, Arbitrators or Umpire must be obtained first</p> Signup and view all the answers

    What is the consequence of over-insuring a property?

    <p>The insured will only be compensated based on the market value</p> Signup and view all the answers

    What happens when the insured and the insurer appoint their own Arbitrators?

    <p>They will appoint an Umpire to preside over their meetings</p> Signup and view all the answers

    Why is the principle of indemnity applied in the event of a loss?

    <p>To compensate the insured based on the market value</p> Signup and view all the answers

    What is the consequence of under-insuring a property?

    <p>The insured will be deemed to be their own insurer for the portion not insured</p> Signup and view all the answers

    Who is responsible for the portion not insured or under-insured in the event of a loss?

    <p>The insured</p> Signup and view all the answers

    What is the condition for the arbitrator to make an award?

    <p>The arbitrator has the sole discretion to make an award</p> Signup and view all the answers

    What is the purpose of the arbitration process in the event of a disagreement between the insured and the insurer?

    <p>To resolve any differences between the insured and the insurer on the amount of loss</p> Signup and view all the answers

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