Insurance disputes can be time-consuming, costly, and disruptive for both insurers and policyholders when handled through traditional litigation. As a result, mediation and other forms of Alternative Dispute Resolution (ADR) are increasingly being adopted as effective tools for resolving insurance-related claims in Kenya.
Mediation offers a confidential and flexible process in which parties are assisted by a neutral mediator to reach a mutually acceptable settlement. Unlike court proceedings, mediation allows parties to retain control over the outcome, preserve commercial relationships, and resolve disputes within significantly shorter timeframes. This is particularly valuable in insurance matters, where delayed resolution can affect business operations, cash flow, and reputational interests.
From coverage disputes and claim quantum disagreements to liability and policy interpretation issues, mediation provides a practical forum for open dialogue and problem-solving. It also reduces legal costs and minimizes the uncertainty associated with court judgments.
As courts continue to encourage ADR under Kenya’s legal framework, mediation is fast becoming the preferred dispute resolution mechanism in insurance matters. This article explores the key advantages of mediation and why insurers, insured parties, and legal practitioners should consider ADR as a first option in resolving insurance disputes.
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