Page 24 - Insurance Times March 2016 Sample

Legal Representative: a person who in law represents the
estate of a deceased person, and includes any authorised
person or intermediary

Arbitration Agreement (Section 7): party, by the Chief Justice or any person or institution desig-
nated by him.
It may have the following characteristics:
 May be in the form of an arbitration clause in a con- This condition is inserted in the Insurance policy which in-
sists on reference to arbitration any dispute as to the
tract or in the form of a separate agreement. amount of settlement of claims. The salient points of this
condition are:-
 Shall be in writing 1) Difference in respect of quantum (amount) of claims is

 Exchange of letters, telex, telegrams or other means to be referred only to arbitration.
of telecommunication which provide a record of the
agreement 2) Matters involving the liability under the policy cannot
be referred to arbitration.
 Exchange of statements of claim and defence in which
the existence of the agreement is alleged by one party 3) A single arbitrator is to be appointed in writing by the
and not denied by the other party. insured & the insurer.

Power of Reference to Arbitration (Section 8): 4) If the Insurer/insured cannot agree upon a single arbi-
trator then two arbitrators may be appointed in writ-
A judicial authority before which an action is brought in a ing, one arbitrator by the insured & the other by the
matter which is the subject of an arbitration agreement insurer, within two calendar months.
shall, if a party so applies refer the parties to arbitration.
Application from a party must be accompanied by Original 5) If either insured or insurer fails to appoint the arbitra-
arbitration agreement or duly certified copy thereof. tor the other party is at liberty to appoint, a sole arbi-
trator.
5. Composition of Arbitral Tribunal (Sec-
tions 10-15): 6) If there be any disagreement between the arbitrators
the difference is to be solved by Third Arbitrator ap-
Number of Arbitrators (Section 10): pointed by the arbitrators. The THIRD ARBITRATOR
decision is final & binding.
Parties are free to determine the number of arbitrators,
provided that such number shall not be an even number. 7) The provision of Reconciliation & Arbitration act 1996,
Where such number has not been fixed by parties, the arbi- as amended from time to time is applicable.
tral tribunal shall consist of a sole arbitrator.
6. Details of Arbitration Act:
Appointment of Arbitrators (Section 11):
'When will mankind be convinced and agree to settle their
Disputing parties are free to agree on a procedure for ap- difficulties by arbitration?' Benjamin Franklin had asked once.
pointing the arbitrator or arbitrators. Sole arbitrator can be
appointed by consent of the parties to the dispute. Failing Purpose of Arbitration Act is to provide quick redressal to
any agreement to appoint a sole arbitrator, arbitral tribu- commercial dispute by private Arbitration. Quick decision of
nal shall consist of three (3) arbitrators. Each party shall
appoint one arbitrator, and the two appointed arbitrators
shall appoint the third arbitrator who shall act as the Pre-
siding Arbitrator.

If a party fails to appoint an arbitrator within thirty days
from the receipt of a request to do so from the other party
OR the two appointed arbitrators fail to agree on the third
arbitrator within thirty days from the date of their appoint-
ment - the appointment shall be made, upon request of a

24 The Insurance Times, March 2016