Every day, Illinois drivers are injured in motor vehicle accidents with hit-and-run drivers or drivers who are uninsured or underinsured. In 2012, over 13% of Illinois drivers were uninsured, and the increasing number of uninsured and underinsured drivers nationwide only underscores the importance of having uninsured motorist coverage for the rest of us. In Illinois, it is the right of every policyholder who carries Uninsured Motorist coverage, or “UM” coverage, to have his or her injury claim seeking UM coverage heard at arbitration, to decide how much compensation or “damages” will be paid.
An UM arbitration is a legal proceeding held before a panel of arbitrators. The arbitration hearing is set up much like a trial, where parties represented by lawyers call witnesses and present evidence to the arbitration panel. After the hearing, the arbitrators render a decision, referred to as an arbitration “award.” The decision of the arbitrators determines whether the injured person has a right to receive any damages under the insurance policy and how much.