Resolving Claims Dispute in Microinsurance: Threading the Alternative Path

Insurance is a business of trust. As such, it is important for the industry to protect and maintain the trust of the people on insurance. One way to do this is to ensure that claims are settled at the time the insured needs it the most and that complaints and disputes related to insurance are resolved quickly, incurring very little, if not zero, cost to the insured.

Recognizing the costs (time and financial) related to the use of the courts in settling disputes, the Philippine Regulatory Framework for Microinsurance and Insurance Memorandum Circular 2010-1 explicitly provided for the use of alternative mechanisms in the settlement of disputes in microinsurance.

This report provides a snapshot of the Alternative Dispute Resolution for Microinsurance (ADREM) prescribed by the Insurance Commission, including the following:

• The Stakeholders
• The Guiding Principles
• The Formulation of ADREM
• The ADREM Process
• The Mediators-Conciliators