Arbitration in injury claims
In plain English: arbitration is a private way of resolving a dispute. Instead of a judge or jury, one arbitrator or a panel of three hears the evidence and makes a decision, called an award. It is usually quicker and less formal than court, but you often give up the right to appeal.
Where you might meet it after an accident
- Your own insurance policy. Many US auto policies require arbitration for disputes over uninsured or underinsured motorist claims, such as how much your injury is worth.
- Court-annexed programmes. Some US states send smaller civil claims to arbitration before they can go to trial. These awards are often non-binding, so either side can reject them and ask for a trial, sometimes with a cost penalty.
- Contracts you signed. Gym memberships, rideshare terms, employment contracts and nursing home admissions sometimes include arbitration clauses.
- Insurer to insurer. Insurance companies often arbitrate between themselves over who pays, without involving you.
Arbitration is uncommon in ordinary UK and Canadian personal injury claims, where negotiation, mediation and court are the usual routes.
Binding or non-binding makes all the difference
With binding arbitration, the award is final and a court will enforce it. Grounds to challenge it are very narrow, usually limited to fraud, bias or the arbitrator going beyond their powers. A low award is not a reason to overturn it. With non-binding arbitration, the award is a strong signal of value but you can still take the case to trial. Read the policy or agreement to find out which you are dealing with.
How a typical hearing works
- The arbitrator is chosen, either by agreement or from a provider's list.
- Both sides exchange documents: medical records, bills, wage evidence and expert reports.
- A hearing is held, often in an office rather than a courtroom. You may give evidence and be cross-examined.
- The arbitrator issues a written award, sometimes with short reasons.
An underinsured driver's policy pays out its limit, but your losses are higher. You claim under your own underinsured motorist coverage and your insurer offers far less than you think the injury is worth. Your policy requires arbitration, so a panel decides the value instead of a jury.
The relaxed setting can make people underprepare. Arbitrators decide on the evidence in front of them. Bring organised records, consistent testimony and, where the injury is serious, an expert report.
Next: mediation vs arbitration · mediation · insurance claim vs lawsuit.
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General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer