Amendments to B.C. Insurance Act would mandate use of alternative dispute resolution

Proposed amendments to British Columbia’s Insurance Act include the requirement that alternative dispute resolution (ADR) be the first step in resolving insurance disputes.
The amendment is intended to reduce the number of insurance disputes that end up in litigation, said the Insurance Dispute Resolution Services of British Columbia (IDRSBC).
The new Insurance Amendment Act was introduced into legislature on Sept. 15, 2009, received Royal Assent on Oct. 6, 2009, and will be proclaimed “in the near future,” said the IDRSBC.
In the meantime, even though the process is not mandatory, ADR services are still available through IDRSBC, a release says.
In most situations, the IDRSBC’s dispute resolution procedure involves a sit-down discussion between the two parties in a neutral environment. Other types of ADR can involve a mini-trial in which a retired judge hears the case and gives the parties an idea of the probable outcome should the case go to litigation, the release continues.
“Mediation is often more effective than litigation,” said Peter Wright, IDRSBC’s managing consultant. “The financial and emotional expenditure involved in litigation is high and unaffordable to most people.”