Insurance Mediation

Insurance Mediation in foreign trade refers to the process where, when a dispute arises between the insured and the insurance company regarding claims, scope of liability, or compensation amount for cargo transport insurance, a neutral third-party mediation institution or mediator assists both parties in reaching a settlement. It differs from insurance arbitration or litigation, featuring non-adversarial, confidential, efficient, and low-cost characteristics. It is commonly used in scenarios where after cargo damage or shortage occurs during sea, air, or land transport, the insurance company refuses to pay or pays insufficiently, and both parties are unwilling to immediately resort to legal action. Precautions: Mediation agreements are generally not enforceable unless both parties separately sign a settlement agreement; mediation is not applicable to cases involving criminal fraud or major public interest. The difference from Insurance Survey is that a survey only appraises the cause and extent of loss, while mediation focuses on dispute resolution; compared with insurance arbitration, mediation has no adjudicative power, and the outcome depends on the voluntary consent of both parties. Foreign trade practitioners should clearly stipulate mediation clauses in contracts and pay attention to the mediation time limit to avoid affecting subsequent claim rights.