The Study Of China’s Insurance Contract Alternative Dispute Resolution Mechanisms

Insurance contract alternative dispute resolution mechanism means the procedure and institutions to settle the insurance contract dispute through mediation or arbitration instead of litigation. Compared with foreign countries, China’s insurance industry only has a development with a short history. At the early period when large amount of insurance contract disputes happened, we didn’t make the litigation, mediation and arbitration a whole system for insurance contract disputes settlement. Instead, litigation was the main legal procedure that used to settle insurance contract disputes. However, nowadays, more and more insurance contract disputes make litigation hard to settle with low efficiency and high costs. So insurance regulatory commission and insurance companies pay more attention to alternative dispute resolution mechanism.Alternative dispute resolution mechanism has the highlight of low cost, time saving, high efficiency and non-antagonistic. Nowadays, China has tried to build alternative dispute resolution mechanism both in law and in practice. Many provinces and areas have set some models by using alternative dispute resolution mechanism with some highlights and some shortcomings. Through the study of alternative dispute resolution mechanism of UK, Sweden and Germany, the author thinks that China should have its own way in building alternative dispute resolution mechanism considering the state of China’s insurance industry.According to the current situation, alternative dispute resolution mechanism set by an organisation responsible for the self-regulation of the insurance industry is a good choice. With the power delegated by government and the right given by insurance companies, the organisation could work well. Specifically, the following conditions should also be guaranteed. We should make rules for the organisation and make the information shared with others. Besides, we should make Med-Arb and Med-Litigation work better. Professional wokers and enough money are essential for the organisation. At last, the supervisation from the outside and the propaganda about the machanism can make the organisation function better.