Consumers won nearly 90% of arbitration cases in 2019
The Delaware Department of Insurance announced that its arbitration services program earned residents $839,466 in awards during 2019. Considering overlap from the previous year, 354 settlements occurred, and 144 cases were heard. Residents prevailed in about 90% of all cases. In total, the Department opened 502 cases last year.
“Arbitration is one of the many pro-consumer tools our office provides to the public,” said Commissioner Trinidad Navarro. “We want residents to know that when an insurance company isn’t working with them on an issue, they can come to us for help instead of using their hard-earned money to hire a lawyer and spend too much valuable time on the problem.”
The arbitration services offered by the department allow all residents to pursue solutions to auto, home, and health insurance-related issues without requiring the consumer to have the ability to obtain and afford an attorney. These services can assist with insurance disputes when companies will not pay or are offering an unacceptable amount for things like medical costs, lost wages, and car and home damage. Arbitration involves filing a formal complaint against a company to be reviewed and decided by independent experts. While department arbitrators do not provide legal advice, they do guide members of the public through the informal process. The process takes about 90 days, which is much quicker than court cases.
“Imagine driving off a car lot in a newly purchased vehicle, only to have that joy and excitement is shattered by a car accident just days later. Your insurance company offers you only a small portion of the car’s worth and is unwilling to work with you on the claim. You may be awarded a claim by your insurance company – but you don’t have to accept it. By reaching out to the Department of Insurance, the arbitration team can engage the insurance company on your behalf to help you get a more acceptable payment,” said Commissioner Navarro.
The department recommends contacting the Consumer Services Division for assistance interacting with the insurance company, as this service is available to residents who have previously attempted to solve the matter with an insurance company multiple times. Arbitration request forms and more information can be found at insurance.delaware.gov/services/arbitration.