26.1 Introduction

In China, the dispute resolution mechanisms for insurance disputes mainly include negotiation and friendly settlement between the parties, mediation, arbitration, and litigation. Negotiation refers to the method by which the parties to the contract directly communicate on the basis of voluntariness, mutual understanding, and seeking truth from facts, negotiate in a friendly manner, eliminate disputes, seek common ground while reserving minor differences, reach a consensus on the disputed issues, and resolve disputes on their own. Mediation means the activity in which a neutral third party mediates and guides between the parties, helps them exchange views, puts forward solutions, and facilitates the resolution of disputes between the two sides. Arbitration refers to an agreement between both parties to submit disputes to a neutral arbitration institution, which shall render a binding award based on facts and laws. Litigation refers to the method by which the parties to the contract bring the dispute to the people's court, and the people's court resolves the dispute and makes a judgment in accordance with legal procedures.