About this service
An insurance dispute — refusal of indemnity, calculation of the premium, interpretation of the policy — is almost always proprietary in character, and precisely for that reason, within this circle of private-law relations the only additional question is whether the arbitration agreement is protected by the form in which it was concluded. Articles 1, 8 and 9 of the Law on Arbitration assemble exactly these pillars: arbitrability, form, and the court's reaction. Our service offers policyholders and insurers orientation and representation within this framework.
Arbitrability: which disputes may be referred to arbitration
Article 1 builds the law's scope: the law establishes the rules for the creation of arbitration in Georgia, arbitral proceedings, arbitral awards, and the recognition and enforcement of awards issued abroad. The arbitration is competent to examine a proprietary dispute of private-law character based on the equality of persons, which the parties are able to settle between themselves, and also a dispute connected with a public-private partnership contract. An insurance relationship falls squarely within this first circle: claims connected with the insurance contract are proprietary and rest on equality between the insurer and the policyholder — which means that an arbitration agreement can refer such disputes to arbitration, provided its conditions are observed.
The form trap: when the agreement is valid
Article 8 defines the arbitration agreement as an agreement by which the parties undertake to submit to arbitration all or certain disputes that have arisen or may arise between them out of a contractual or other legal relationship. It may be concluded as a clause in the contract itself or as a separate agreement, and must be concluded in written form. Two rules are decisive on the insurance market. First: where a party to the agreement is a natural person — for instance, a consumer policyholder — or an administrative body, the agreement must be concluded in written form, and the relaxed forms do not apply to it: neither fixation in any form, nor an electronic notice, nor an exchange of claim and defence. Second: where both parties are natural persons, the agreement must also be signed by the parties' advocates or be notarised. Between companies, however, flexibility operates: fixation of the content in any form and electronic exchange satisfy the writing requirement, provided the information is accessible for subsequent use.
The court's reaction: closing the door in arbitration's favour
Article 9 builds the protection of arbitration at the court level: a court in which a claim has been filed on the merits of a dispute that is the subject of an arbitration agreement is obliged, immediately upon receiving notice of the commencement of the arbitral examination, to refuse to accept the claim or to terminate the proceedings — unless it finds that the agreement is void, lapsed or incapable of performance. A party to the arbitral proceedings is obliged to notify the court of the commencement of the examination, and from the submission of the claim until the resolution of the jurisdiction question, the arbitral examination may commence, continue and result in an award. In insurance practice this means: an operative arbitration clause in the policy does not delay the court route for years — it closes it by rule.
Frequently asked questions
These are the questions parties raise most often about taking insurance disputes to arbitration, and the answers come directly from the statutory text.
Can an insurance dispute be referred to arbitration?
Yes — where the dispute is proprietary and rests on the equality of persons, it may be the subject of arbitral examination. Insurance claims belong precisely to this circle.
What form does the agreement need if the policyholder is a consumer?
Strictly written form: where a natural person participates, the relaxed forms — fixation in any form, electronic notice, exchange of claim and defence — do not apply. This is a call of consumer protection.
May the arbitration proceed while a court claim is pending?
Yes — until the jurisdiction question is resolved, the arbitral examination may commence, continue and issue an award; the party is obliged to notify the court of the commencement of the examination.
When will the court leave the case in its own hands?
Only where it finds that the arbitration agreement is void, lapsed or incapable of performance — in all other cases it refuses to accept the claim or terminates the proceedings.
How We Help on Legal.ge
We verify the validity and form of the arbitration clause in your policy; assess whether your dispute falls within the arbitrable circle; prepare the arbitral claim with the specifics of an insurance dispute — substantiation of the refusal of indemnity, qualification of the damage, the need for expert examination; represent you in the arbitration and before the court on the jurisdiction question; and determine whether court or arbitration is the more effective arena for your case. Contact us and receive a strategy for your insurance dispute.