How to become a Signatory to the Inter-Company Arbitration Agreement
Interested Canadian Insurers can review and sign the Inter-Company Arbitration Agreement. Signature section can be found on page 4. Insurers should include all subsidiary companies that write business in Canada. The signed Agreement is sent to the National Arbitration Director, CICMA at firstname.lastname@example.org. The objective of the Agreement is to have interested insurers have matters of dispute arbitrated among themselves.
The Agreement covers any physical damage subrogation claims, including business interruption related thereto, not more than $50,000.00.
The Agreement does not apply to:
- Any subrogation claim for the enforcement of which a lawsuit was instituted prior to, and is pending, at the time the Agreement is signed.
- Any subrogation claim as to which a company asserts a defense of lack of coverage on any grounds.
- Any subrogation claim relating to the following specialized coverages:
- Boiler and Machinery
- Ocean Marine
- Any subrogation claim where the total legal liability loss exposure from all sources is in excess of $50,000 except with the consent of the controverting parties. This exception shall not affect in any manner the position of any other parties having interest in the same occurrence.
The Arbitration Process:
An Arbitration Director shall be appointed by each chapter of the Canadian Insurance Claims Manager’s Association, who shall exercise general supervision of the implementation of the Agreement and the rules and regulations thereof. Arbitration Panels shall be appointed under the authority of the Arbitration Director and shall function in the following manner:
- An Arbitration Panel shall consist of an Arbitration Chair and two other members selected by them, except that controverting parties may mutually agree to less than three arbitrators in a specific case.
- Where the amount in dispute is less than $5,000.00, a one-member panel shall be selected.
- The members of Arbitration Panel shall be selected on the basis of their experience and qualifications – ensuring their knowledge base for the case(s) to be arbitrated.
- All Panel members shall serve without compensation.
- The decision of the majority of an Arbitration Panel shall be final and binding upon the parties to the controversy without the right of rehearing or appeal.
- No member of an Arbitration Panel shall serve on a panel hearing a case in which their company is directly or indirectly interested.