*Alternative dispute resolution (ADR) is, in an insurance sense, a number of disparate processes used to resolve disputes.

*Insured clients who are denied a claim are offered this path as an alternative to expensive and time-consuming litigation.

*Alternative dispute resolution (ADR) offers to settle disputes outside of the courtroom with the help of an impartial third party.

*Outcomes may be non-binding and advisory in nature or enforceable without the right to appeal.

*ADR is not advised in situations of criminal law or situations where one party has excessive power over the other party.

Different types of ADR:

1. Arbitration

2. Mediation

Advantages of ADR: 

*Less time consuming

*Cost effective method

*It is free from technicalities of courts, here informal ways are applied in resolving dispute.

*People are free to express themselves without any fear of court of law. 

*Efficient way

Disadvantages of ADR:

*There Is no guaranteed resolution 

*decision of final 

*limits of awards

*facts may not be fully disclosed 

Adr not for all cases