Arbitration Available in MedPay Disputes
Attorney
(866) 735-1102 Ext 645
Tags:
None
In previous postings, we have discussed the fact that most people who are injured in a motor vehicle collision are insured, through their liability policy obtained by the owner of the vehicle, with medical payments coverage. This coverage provides for payment, up to the limits of the policy, for medical expenses incurred as a result of injuries sustained in a motor vehicle collision. This insurance is payable without regard to who was at fault in causing the collision.
Coverage for medical payments is usually in the maximum amount of one to two thousand dollars per person.
Usually, these medical payment claims are paid without dispute. However, occasionally an insurance company will take the position that not all the bills are reasonable or that some of the medical care provided was not necessary. It is easy for the claimant to rebute such a contention because the medical care providers will always support their bill and support the fact that their services were necessary.
The problem faced by the claimant, however, is that with such a relatively small amount in dispute, it is many times not economical to hire a lawyer and bare the other expenses necessary to take the dispute to court.
Fortunately, most North Carolina policies contain a mandatory arbitration clause. This clause gives the claimant the right to demand that the matter be settled by arbitration. Most policies provide that the claimant and the insurance carrier both have a right to choose an arbitrator and that those two arbitrators will then choose a third person who will join the other two arbitrators to sit as a panel of three.
Although arbitration is almost never advantageous to an injured claimant in a substantial case, it does have the advantage of being considerably cheaper in smaller cases since the services of an attorney are not absolutely necessary and the claim can be quite effectively handled by the claimant himself.
The big advantage is that, in asking for arbitration, the claimant forces the insurance company to spend money in the arbitration process. Arbitration is a much easier process to start than filing a lawsuit in court and puts the claimant on a more level playing field with the insurance company.
As a practical matter, in a small claim in which the largest amount at state is one to two thousand dollars, insurance companies will almost never go through arbitration but will instead settle with the claimant on amore equitable basis.
If you have a question about arbitration, please contact us by filling out the form on this page.