Judicial principles and studies
Interpreting Arbitration Clauses in Insurance Contracts and a Responsive Pleading Filed under Article (5)
Decision reference: تمييز حقوق هيئة عامة رقم (٢٦٨٢/٢٠٢٥)
An arbitration clause referring valuation disputes to arbitration confines arbitrators' jurisdiction to both entitlement and quantum of compensation. A responsive pleading filed pursuant to Article (5) of the Courts of Peace law may not be used to decide an arbitration referral request.
Compensation and insurance
Judicial principles and studies
Updated: 10 September 2026
Editorial summary of a judicial principle or decision; consult the source below and do not treat the firm as the author of the decision.
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An arbitration clause referring valuation disputes to arbitration confines arbitrators' jurisdiction to both entitlement and quantum of compensation. A responsive pleading filed pursuant to Article (5) of the Courts of Peace law may not be used to decide an arbitration referral request.
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Subject
Where an insurance contract contains an arbitration clause providing that disputes over the determination of compensation value arising from the policy are to be referred to arbitration, that clause is interpreted as confining the arbitral forum’s competence to decide both whether the claimant is entitled to compensation and, if so, the amount of that compensation. A responsive pleading filed by the defendant pursuant to Article (5) of the Courts of Peace law—submitted to avoid forfeiting the deadline for filing a defence—may not be relied upon for the purpose of deciding an arbitration referral request; the arbitration request must be considered independently of that pleading.
Summary
In short, an arbitration clause addressing valuation disputes limits arbitral jurisdiction to questions of entitlement and quantum. A defensive pleading submitted under Article (5) should not determine the admissibility or resolution of a petition to refer the matter to arbitration. This is an educational summary only; it is not a judicial text or legal advice and does not represent any court, council, or law office.
Practical significance
- Interpreters of arbitration clauses, parties, and arbitrators should treat valuation disputes as encompassing both entitlement and amount. - Courts and practitioners must handle arbitration referral requests separately from any responsive pleading filed pursuant to Article (5) of the Courts of Peace law. - Filing a responsive pleading to protect procedural rights should not preclude consideration of an application to refer the dispute to arbitration.
Frequently asked questions
Subject?
Where an insurance contract contains an arbitration clause providing that disputes over the determination of compensation value arising from the policy are to be referred to arbitration, that clause is interpreted as confining the arbitral forum’s competence to decide both whether the claimant is entitled to compensation and, if so, the amount of that compensation. A responsive pleading filed by the defendant pursuant to Article (5) of the Courts of Peace law—submitted to avoid forfeiting the deadline for filing a defence—may not be relied upon for the purpose of deciding an arbitration referral request; the arbitration request must be considered independently of that pleading.
Summary?
In short, an arbitration clause addressing valuation disputes limits arbitral jurisdiction to questions of entitlement and quantum. A defensive pleading submitted under Article (5) should not determine the admissibility or resolution of a petition to refer the matter to arbitration. This is an educational summary only; it is not a judicial text or legal advice and does not represent any court, council, or law office.
Practical significance?
- Interpreters of arbitration clauses, parties, and arbitrators should treat valuation disputes as encompassing both entitlement and amount. - Courts and practitioners must handle arbitration referral requests separately from any responsive pleading filed pursuant to Article (5) of the Courts of Peace law. - Filing a responsive pleading to protect procedural rights should not preclude consideration of an application to refer the dispute to arbitration.
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