What Happens If Mediation Does Not Occur? Is There a Requirement for Mediation in Insurance Disputes?

Mediation is an important alternative method for resolving disputes between parties. Particularly in the insurance sector, the role and significance of the mediation process in resolving disputes are increasingly recognized. However, understanding the negative consequences of not engaging in mediation and whether mediation is mandatory in insurance disputes is critical for both individuals and companies.

The Importance of the Mediation Process

Mediation is a process in which parties come together to directly discuss and reach a resolution to their issues. This process allows parties to protect their interests and resolve disputes more quickly. The advantages of mediation include:

• Quick Resolution: Mediation offers a much faster solution compared to court processes. Parties have the opportunity to meet within a specific timeframe to resolve their issues.
• Lower Costs: Court fees and attorney fees are significantly higher than those associated with mediation. Mediation can considerably reduce the costs for the parties involved.
• Confidentiality: The mediation process occurs in a more private setting compared to court proceedings, protecting the parties’ sensitive information.
• Communication and Relationship Management: Mediation increases communication between parties and helps prevent the deterioration of relationships, which is especially important in business contexts.

However, if the mediation process is absent, serious problems may arise between the parties.

Problems That May Arise Without Mediation

• Prolonged Court Processes: The absence of mediation can lead parties directly to court. Court processes are often lengthy and complex, consuming the parties’ time and resources.
• Higher Costs: Court fees, attorney fees, and other legal expenses are much higher compared to mediation costs. This situation can lead to financial difficulties for the parties involved.
• Increased Tension Between Parties: While mediation helps resolve conflicts, the lack of this process can escalate tensions between parties. This can lead to serious issues, especially in long-term business relationships.

Is Mediation Mandatory in Insurance Disputes?

In Turkey, mediation has become mandatory in certain situations concerning insurance disputes. With the regulations that came into effect in 2019, the mediation process in insurance disputes has been established as a necessary step before resorting to court. With this regulation, the importance of mediation in resolving disputes has increased significantly.

Advantages of the Requirement

• Quick Resolution: Parties can resolve their disputes more quickly. Compared to the lengthy court processes, mediation offers a faster solution.
• Cost Savings: By avoiding court costs, parties can find solutions at a lower expense. This is a significant advantage, especially for small businesses and individuals.
• Control for the Parties: Parties have greater control over the resolution process. The mediation process provides an opportunity for parties to protect their interests and create a more flexible path to resolution.
• Communication and Collaboration: Mediation promotes communication between parties, encouraging collaboration. This contributes to strengthening long-term relationships.

The absence of the mediation process can lead to various negative consequences for the parties involved. Prolonged court processes, high costs, and increased tension between parties are potential issues that may arise when mediation is not conducted. The requirement for mediation in insurance disputes in Turkey has been introduced to help parties resolve their issues more quickly and cost-effectively.

Therefore, the effective use of the mediation mechanism is of great importance for both individuals and insurance companies. By adopting the mediation process, parties can gain both financial and emotional benefits, contributing to the strengthening of long-term relationships. Entrepreneurs and individuals should consider the advantages offered by mediation and evaluate this method for resolving their disputes.