Mediation in insurance disputes is an alternative solution method that has become prominent in recent years.
Condition of Litigation Mediation
- Mediation is a requirement before filing a lawsuit in some insurance files
- Commercial disputes
- Consumer disputes (above a certain amount)
Advantages
- Fast (weeks)
- Cheap
- Flexible solution
- Confidentiality
- Can protect the relationship of the parties
Process
- Mediator selection (Ministry of Justice list)
- First meeting
- Negotiation
- Agreement → minutes
- Non-agreement → minutes (way to file a lawsuit)
Agreement Document
- If signed by lawyers, in the nature of a judgment
- Can be directly enforced
Insurer's Approach
- They are generally open to compromise
- Court processes are long → additional interest
- Compensation remains limited they want
Supreme Court 11. HD
11. HD accepts that mediation agreement documents are "executable" and the insurer cannot renege on its commitment.
Insurance and mediation expert lawyer is recommended.