My car is insured with Bajaj Allianz. Last month it met with an accident and 30% damage to bonnet and front window damaged. I had lodged a claim with Bajaj Allianz. Now Bajaj Allianz is not ready to pay the full amount.
1- Is it possible to appoint an arbitrator?
2- If yes, please tell me the procedure?
As per Bajaj Allianz website -
“If a dispute arises as to the amount to be paid under this policy the matter would be referred to a sole arbitrator who is acceptable to both the insured and the company, Bajaj Allianz. If the insured and Bajaj Allianz cannot agree on an arbitrator within 30 days of either party asking for arbitration, then three arbitrators would be asked to decide the case. One arbitrator each would be appointed by Bajaj Allianz and the insured and the third arbitrator would be appointed by the two arbitrators. If Bajaj Allianz refuses a claim, then arbitration would not be possible. Arbitration is necessary before any law suit over this policy. If Bajaj Allianz refuses a claim by the insured, then the insured can go to court within 12 months. If he/she doesn't do that, then such claim will be abandoned. We're not sure how far this clause would stand in court but it exists in the terms and conditions nevertheless.”
What is arbitration?
Arbitration is defined as a process where a dispute or claim is submitted to an arbitrator who shall decide on and dispose of the dispute. The arbitrator may be a person, a group of person, or an organization chosen by the parties to the dispute. Once the arbitrator has made his ruling, the parties are bound to abide by it, without prejudice to filing an appeal. This method is a faster and cheaper alternative to a court proceeding.
How are arbitrators chosen?
Both the parties may suggest third parties, whether an individual person, a group of person, or an organization. Then the parties negotiate as to who is the best and most qualified person to decide the case. If the arbitrator is composed of a group of persons, it is customary that each party nominates one arbitrator of their choice. In a car accident dispute, the relevant factors to consider in choosing the arbitrator may include the arbitrator's: experience and expertise in car accident claims, reputation, availability, interest in the outcome of the case, whether he is fair or biased, and the service fees. The state usually provides a list of accredited arbitrators from whom the parties can choose. But the parties are not prohibited from selecting an arbitrator outside of the list.
Award by the Arbitrator
Once an arbitrator is appointed, he will set a date for the submission of relevant documents. At this stage, each party can submit relevant papers to prove their arguments, which may include the contract, police reports, medical bills, and other certifications. Parties are encouraged to cooperate with each other to expedite the process.
Finally, the arbitrator decides the case. The arbitrator's decision will be based primarily and entirely on the papers and materials submitted in the arbitration. The decision will state the parties, a summary of the facts and issues involved, as well as the awards of damages and costs. The decision may be stated in the presence of the parties or sent through mail.
In case a party is not satisfied with the decision, he/she may file an appeal with the court.
Source - unifiedinjury.com