The American Arbitration Association has prepared a new alternative dispute resolution (ADR) system for the insurance industry and claimants. Designed for personal injury and property damage claims, the program offers either mediation or arbitration, at the parties' option, as an alternative to court litigation.
The Travelers is the first user to select the AAA's insurance ADR program, and these procedures are now being offered in all of The Travelers offices across the United States. A similar program has recently been adopted nationwide by the Hartford Insurance Company. Initially, The Travelers selected a group of personal liability and property damage cases appropriate for ADR. The AAA invited the claimants to submit the cases to the program. Claimants' attorneys also have been invited to identify cases for submission. The following commentary on the program was made by Robert J. McLucas, director of Liability Claims, The Travelers Insurance Companies.