Travel Insurance
7. External Dispute Resolution
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 25 Aug 2015
- External dispute resolution means that the dispute is handled by a body independent from the insurance company. There are two main avenues for lodging an external dispute. These are the Financial Ombudsman Service (FOS) or going to court.
- The Financial Ombudsman Service provides a free external service for consumers to resolve a dispute with an insurer. You should contact the FOS as soon as possible after you are advised of the outcome of the internal dispute resolution process.
- The FOS will firstly attempt to mediate between you and your insurer. If mediation is unsuccessful then the FOS will make a determination on the matter.
- Any determination made by the FOS is legally binding on the insurer but not on the consumer. You can either accept or reject the determination. There is no way to appeal against a decision made by the FOS. You will have 30 days to decide whether you will accept or reject after the determination is made.
- If you are seeking to recover a large amount from your insurer or have exhausted all other avenues then court may be worth the expense. Which court you decide to commence your claim in will depend on the amount of your claim and the area where you live. You may want to contact a lawyer who can help you initiate your claim in court, file the relevant paperwork and represent you in the event that this is necessary.
- Our free Find a Lawyer directory provides contact details for lawyers who may suit your needs.
- Before you can lodge your complaint with the court you will need to complete a number of forms and applications. You will also be required to pay court fees. These fees are generally for the lodgement of documents.
- You should remember that if you go to court and the case is not decided in your favour you may have to pay the costs of the insurer. This is another persuasive reason to consult with a lawyer before deciding whether to go to court. A lawyer will be able to advise you on your chances of success. If you do not have a strong case then avoiding court will save you a lot of money. There may be alternative avenues for the resolution of your dispute such as negotiation and alternative dispute resolution.
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