What is the purpose of mediation in dispute resolution?

Mediation plays a crucial role in dispute resolution by serving as a process where a neutral third party, the mediator, facilitates discussions between the disputing parties. The primary objective is to promote understanding, help negotiate effectively, and assist the parties in reaching a mutually acceptable resolution to their conflicts.

The mediator does not impose a decision but instead encourages open communication, ensuring that both sides can express their viewpoints and concerns. This collaborative approach often leads to solutions that might not be reached through more adversarial methods, such as litigation. In the context of insurance claims, mediation can help resolve disputes regarding coverage, claims amounts, or other issues without needing to go to court, thus saving time and resources for both parties involved.

The other options do not accurately describe mediation. Court-ordered resolutions are determined through litigation, while liability determination is typically the role of an adjuster or the courts, not a mediator. Expert determination involves a specialist making a binding decision based on their expertise, which is different from the facilitative role of a mediator.