Arbitration
Arbitration is a recognized method of resolving disputes outside the courts through am impartial third party.
It is widely used in commercial contracts and insurance agreements because it is faster, confidential, cost-effective, and legally binding.
Key Features
- Neutral & Independent – Arbitrators are impartial professionals.
- Confidential – Disputes are resolved privately.
- Flexible – Parties can choose procedures, seat, and language.
- Binding – Awards are enforceable under the Arbitrations & Conciliation Act, 1996.
Arbitrator is an independent expert (legal, financial, or industry professional) who hears both parties, examine evidence, and delivers a binding arbitral award.
Commercial Arbitration
- Used in business, trade, infrastructure, and investment contracts
- Helps avoid lengthy litigation in courts
- Ensures speedy and enforceable decisions
- Promotes cross-border dispute resolution under global conventions (e.g New York Convention)
Insurance Arbitration
- Common in Marine, Reinsurance, and Commercial Insurance Policies.
- Most insurance contracts include an arbitration clause for claim disputes
- Provides specialized resolution by industry experts.
- Maintain long-term insurer-insured and reinsurer relationships
- Saves time and cost compared to litigation.
Role of an Arbitrator
- Conduct fair hearings
- Review contracts, claim documents and evidence
- Deliver neutral and binding awards
- Maintain confidentiality and impartiality
Why Arbitration Matters
- Reduces burden on courts
- Builds trust and fairness in business & insurance contracts
- Ensures timely disputes resolution
- Supports India as an emerging global arbitration hub.