Mandatory Arbitration

“Arbitration is mandatory in the event of:
(i) any collision between vehicles, or
(ii) any involuntary damage to property involving vehicles, or
(iii) any such claim against an authorised insurer who in accordance with the Motor Vehicles Insurance (Third-Party Risks) Ordinance (Cap. 104) or any policy of insurance may be liable therefor, and
(iv) the value whereof does not exceed €11,646.87. A dispute for damages for personal injuries cannot be referred to arbitration. Therefore, two parties which are locked in a dispute as to who is at fault in a collision, where damages are less than €11,646.87 and none of the parties had been injured are required to refer their case to arbitration at the Malta Arbitration Centre. Decisions taken in respect of mandatory arbitration are public. The arbitration award is final and binding and cannot be appealed, except for points of law. This means that the parties cannot refer the case to the courts for the merits of the case to be reassessed. “