Dispute Resolution Process
Dispute Resolution Process -
The Code provides for two dispute resolution processes, depending on the
type of dispute.
Clause 10 deals with internal
dispute resolution (IDR) and is designed to deal with disputes that arise prior
to commencement or completion of repair. These type of disputes will revolve
mainly around issues relating to methods of repair, but does not include
disputes relating to amounts paid for repair.
IDR is the insurer’s own internal dispute resolution process. Each insurer
signatory’s process may differ slightly, but in all cases the process will be
prompt, fair and transparent.
Notification of Dispute
In the event of a dispute under
, the repairer must notify the respective insurer’s
providing full details of the dispute and supporting
evidence of the concern and the redress sought.
Dispute Resolution Procedure
The procedure is designed to be a speedy process and any such disputes need to
be fully investigated and a determination made within 2 business days.
The full procedure is documented in
External Dispute Resolution -
This process applies to all disputes relating to alleged non- compliance with
the Code and to disputes of a contractual nature, but does not apply to
disputes which are described in sub clauses 10.1(a) and 10.1(c). It is
important to note that this process is only available if both the insurer and
the repairer, involved in the dispute, are signatories to the Code.
External Dispute Resolution Procedure
The external disputes resolution (EDR), refer clause 11,
is based on the concept of mediation by an independent
and trained mediator.
Before undertaking the EDR process, it is a requirement of the Code that IDR be
undertaken in an endeavour to mutually resolve the matter. Should IDR fail, and
provided the dispute is of a nature that allows it to be dealt with under EDR
provisions of the Code, EDR can be initiated.
To commence an EDR action under the Code, the applicant must
lodge a notice of dispute
with the CAC’s nominee, Resolution Institute, providing the
necessary information as out lined in clause 11.3.
Conditions - clause 11.4
Undertaking EDR mediation does not affect the right of a party to take legal
action in relation to a dispute. Parties to an EDR are to share the costs
equally, unless they agree otherwise, irrespective of the outcome of mediation.
Parties to pay for their own costs of attending a mediation.
What is Mediation?
Mediation is an informal process for helping people who have disputes to sort
them out for themselves. The Mediator provides this help. The Mediator helps by
encouraging those in dispute to talk about their concerns to each other. The
real problems, large or small, are examined with or without the help of legal
advisors. Possible solutions are considered and, where possible, terms of
agreement to resolve the dispute are nutted out.
Mediation allows direct discussion of the real differences and a search for
practical solutions. The Mediator helps the process along so there is no
unpleasant confrontation and no unneccessary legal obfuscation. There is total
informality. No solutions are imposed. You agree to settle only if the
settlement can be innovative and creative and focus on real interests and
When should you Mediate?
It is always worth trying to mediate a settlement first. You will find that
mediation started early is likely to save lots of time, money and stress, and
give you a better chance of restoring good relations.
Under clause 11.4(b), the Code provides that the costs of mediation are to be
shared equally between the disputing parties, unless the parties agree
otherwise. There are two costs associated with the mediation process; an
‘Administration Fee’ and the ‘Cost of Mediation’ itself.
The Administration Fee will need to be paid to the CAC’s nominated
mediation service provider (Resolution Institute), prior to the mediation process commencing.
The Administration Fee is to cover the costs of Resolution Institute nominating a mediator for
the dispute and of advising the disputing parties who the mediator is to be and
maintaining appropriate records of the process.
This fee is $132.00 per mediation, and as the cost is to be shared equally, the
party initiating a notification of dispute will be required to pay their share
of the fee (that is $66.00) to Resolution Institute prior to the mediation process commencing.
The other party to the dispute will be billed $66.00 soon after.
Upon receiving notification of dispute, Resolution Institute will make contact with the
notifying party, requesting payment of $66.00 by credit card. Once this payment
has been processed, Resolution Institute can commence the process of appointing a mediator.
There is no set cost for mediation as the fee charged will depend on
the nature of the dispute, the method of mediation and the length of time taken
by the mediation process. The parties to the dispute will be billed directly by
the appointed mediator.
Click here to download the Determination Rules.