Alternative Dispute Resolution (ADR) for Insurance Disputes: a comprehensive review of the Legislative framework in Kenya

Abstract

Disputes are inevitable when not avoidable and especially so in the insurance industry which is synonymous with high volumes of claims. Unresolved disputes become a constant burden to all the parties involved and therefore, an operative and functional dispute resolution tool is paramount to guarantee the expeditious resolution of disputes. The global trend has shifted from the traditional over reliance on litigation towards adoption of other alternative methods of dispute resolution. The inclusion of Alternative Dispute Resolution (ADR) in the Constitution of Kenya under Article 159 is a notable recognition of the role ADR plays towards the attainment of justice. However, it is evident that the insurance industry in Kenya is yet to embrace ADR despite the recognition that a comprehensive ADR framework will provide a better dispute resolution system for the industry. The study analyses the legal framework of ADR in Kenya vis-à-vis its application as a tool for dispute resolution in the insurance industry while evaluating its effectiveness in resolving insurance related disputes. The study identifies the challenges attributing to the low use of ADR in the insurance industry and a conclusion is drawn supported by the findings of the study towards making recommendations for necessary legal reforms.