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Most J.B policies contain an arbitration clause only in respect of a dispute regarding quantum, but the clause does not refer the parties to arbitration in case of other disputes regarding coverage or liability.
Experience gained over the past years in cases which were brought before the Israeli courts, casts some doubts on whether the time has not come to change this concept and refer all disputes to a tribunal comprising professionals. Such tribunal would include, in our opinion, persons with knowledge and experience not only in the field of insurance but also in the jewellery trade.
It is true that arbitration is usually an expensive process, but it seems that in view of the long duration of court proceedings, the expenses involved are not any greater. The main consideration should be the unique questions which are raised in this specific field on one hand, and the unfamiliarity of the judges with the diamond and jewellery world and the relevant insurance coverage, on the other hand.
Another consideration which should be taken into account, is the Israeli Insurance Contract Law - 1981. This law is a very consumer protective law and includes many mandatory stipulations if favour of the insured. According to special regulations, the law does not apply to insurance of diamonds or jewellery. However, in recent years, it seems that there is a tendency of the courts to apply principles from the said law in cases where the law does not directly apply. In many cases the courts do not pay attention to the material distinction which should be made between J.B policies and any other property insurance.
A tribunal of professional people as suggested, may have a better understanding of the various specific issues and therefore appreciate the distinction which should be made between JB policies and other insurance policies.
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