No Fault Arbitration


The American Arbitration Association (“AAA”) offers an alternative to the, at times, more expensive and time consuming litigation. According to the AAA, “For over 25 years, the New York State Insurance Department has provided consumers and insurance carriers with the opportunity for the conciliation or arbitration of disputed claims in certain automobile insurance programs. In partnership with the Insurance Department throughout those years, the AAA has administered the arbitration of such disputed claims on the Department’s behalf. The programs in which the arbitration of disputed claims has been administered by the AAA include No-Fault insurance, uninsured motorist (UM) insurance and supplemental underinsured motorist (SUM) insurance. In late 1999, at the request of the Insurance Department, the AAA also undertook the conciliation function in No-Fault insurance cases.” We will assist you in making this decision by presenting you with the advantages and disadvantages of both litigation and arbitration so that you can obtain optimum recovery on your terms.

What is arbitration?

Arbitration is a time-tested, cost-effective alternative to litigation. Arbitration is the submission of a dispute to one or more impartial persons for a final and binding decision, known as an “award.” Awards are made in writing and are generally final and binding on the parties in the case. The AAA’s arbitration services include access to its superior case management services, well-screened expert neutrals who undergo continuous training, and the AAA’s Rules and Procedures that govern the various ADR processes.

Advantages of Arbitration

According to the AAA the advantages of arbitration are:

The Process

The arbitration process begins by filing a claim and filling out Form AR-1. This form can be used to request arbitration for a denied claim as well as for a delay or default in payment. In addition, using this form allows a medical-services provider to consolidate all disputed bills for the same patient in the same request. The form must be accompanied by all relevant bills and medical documentation. There is a $40 dollar filing fee. Once your file is received it is assigned to a conciliator. The conciliation period takes places prior to arbitration so settlement negotiations can take place. If the matter settles at this point it is resolved the the process ends. However, if the matter does not settle within 30 days it is assigned to an arbitrator and the binding arbitration process begins. A hearing date is assigned and within 30 days of the close of the hearing, the arbitrator renders the award.