The Improvement Of Alternative Dispute Resolution System Of Chinese Insurance Contract Dispute

The Justice of U.S. Supreme Court Sandra Day O’Connar considered, the courtis not a place to trigger disputes, but to settle down disputes after alternativeconsideration. To apply the alternative dispute resolution procedure is very general inUK, the United States and Japan, especially in commercial and financial area, ADRhas been the priority choice to the parties. And the legislative body and the judicialdepartment also encourage parties to choose nonlitigious ways to settle disputes. Withthe insurance contract disputes increasing sharply in resent years, the court isconfronted with litigation pressure. On the other hand, the speciality of insurancealways results in the negative outcome of trial. The research purpose of paper is todiscuss introducing the ADR (alternative dispute resolution), how to achieve andwhat will encounter a problem. The article content is based on our current insurancecontract dispute resolution mechanism; meanwhile it borrows from experience in thefield of finance, insurance of Britain and other countries. More specifically, theFinancial Ombudsman Service and Hong Kong Insurance Claims Complaints are therepresentatives of third party of insurance contract dispute resolution, the legal statusof which is not belonged to government nor insurance association. The status of theFOS is self-regulating organization in insurance industry.The United State is the place of origin of ADR. The author researches thetraditional and mixed type of American, British and Japanese ADR mechanism in thethird part. With the research and analysis of mechanism aforesaid, the author furtherconsiders the insurance dispute resolution mechanism in our country. In the fourthpart, the paper analyses the feasibility of introducing ADR mechanism in ourinsurance industry, especially how the foreign country apply the ADR in insurancecontract dispute resolution.The complaint and lawsuit are the main mechanism of insurance dispute resolution in our country, but not the common mediation and arbitration mechanism.The contradictory between insurance company and consumer is more and more sharp.How to resolve the insurance contract dispute in more convenient and effective wayis the guarantee that the insurance industry develops permanently. The InsuranceSupervisor Bureau and insurance associations in various regions set up insurancedispute mediation committees in Shanghai, Beijing, Qingdao, Anhui etc. after2005.This practice relieved the pressure of litigation and provided variety disputemechanism to the parties. However, the Insurance Supervisor Bureau and insuranceassociations in various regions are responsible for the committees at present, but notthe third party resolution mechanism that independent of government and insuranceassociation. Therefore, the author discusses how to deepen the alternative disputeresolution mechanism apply in our insurance industry in the last part, and how to setup the effective and long-term insurance dispute alternative resolution mechanism.