What method is used for claim settlement in casualty insurance when there's a disagreement between the insured and the insurer?

The method that's commonly used for claim settlement in casualty insurance when there is a disagreement between the insured and the insurer is arbitration. In this process, both parties present their case to a neutral third party, known as an arbitrator, who is responsible for making a binding decision to resolve the dispute.

Arbitration serves as an alternative to litigation, offering a more streamlined and often less expensive resolution to conflicts over claims. It provides a formal mechanism through which both sides can articulate their positions, and the arbitrator's decision can lead to a fair resolution based on the evidence and circumstances surrounding the claim. This method is specifically designed to address disagreements that arise after initial claim submissions, ensuring that both parties have an opportunity to present their sides of the case.

In contrast, other methods mentioned, such as appraisal, pertain to assessing the value of a claim but do not address disagreements about coverage or liability directly. Proof of loss refers to documentation the insured must provide to substantiate their claim but does not involve the settlement process itself. Restoration involves returning property to its original state but is not a method for settling disputes between parties in a claim.