Türkiye: Regulation governing traffic insurance platform begins
Source: Middle East Insurance Review | Mar 2024
The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has published a circular to regulate the working procedures and principles of the Traffic Offer Platform established under the Insurance Information and Monitoring Centre.
The circular, which includes articles regarding platform membership, the brokerage agreement, bidding and policy issuance which came into force on 19 February 2024.
The platform was established to solve the supply problem in compulsory motor third-party liability insurance, also called traffic insurance, to eliminate difficulties faced by vehicle owners in finding a traffic insurance offer and to reassure insurance intermediaries.
Insurance companies with traffic insurance licences are members of the platform. Intermediaries operating in Türkiye are expected to join the platform.
Under the system, a vehicle owner who wants to buy traffic insurance submits a request for a quote to the insurance intermediary for a new policy or to renew a policy. Intermediaries will seek an offer to insure from the contracted insurance companies they represent. If insurance intermediaries are unable to obtain an offer of insurance within a specific duration of submitting an application, the case will go to the traffic offer platform.
If the insurance intermediary cannot secure an offer on the platform within a specific duration, an insurance company will automatically be appointed to provide coverage. The maximum traffic insurance premium to be deducted through the platform will be decided by the SEDDK.
Traffic insurance policies issued through the platform will be transferred to the traffic risk insurance pool, and if there are damages to be compensated, the claims will be covered jointly by motor insurance companies. M