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.”