New regulations relating to mandatory motor third-party liability insurance (also known as traffic insurance) are to enter into effect on 1 July, bringing about extensive changes.
The regulations amending the General Terms and Conditions of Compulsory Motor Vehicle Liability Insurance have been published in the Official Gazette. Drawn up by the Insurance and Private Pension Regulation and Supervision Authority (SEDDK), the new regulation introduces significant changes to the definition of the insured, the scope and coverage structure, and claims processes of compulsory traffic insurance.
Definition of the insured
Under the new general terms and conditions, the concept of the insured has been redefined. Accordingly, the insured will be considered to be the person who holds the title of "operator" of the motor vehicle covered by the policy, in accordance with the Highway Traffic Law.
With this regulation, the concept of "permanent data storage" has also been added to the legislation. Digital tools such as short messages, emails, websites, mobile applications, CDs, DVDs, and memory cards, as well as systems to be created through the Insurance Information and Monitoring Centre and e-Government, fall within this scope.
Scope of insurance coverage and the depreciation process
With the new regulation, the coverage of traffic insurance has been restructured to include material damages, medical expenses, injury, and loss of support.
The property damage coverage will cover not only direct losses to the policyholder's assets but also the decrease in the value of the damaged vehicle. The vehicle's depreciation will be calculated by an insurance expert appointed by the SEDDK.
Individuals who file a claim due to vehicle damage will also be considered to have filed a claim for diminished value. Insurance companies are obligated to notify the claimant of the calculated diminished value amount in writing or via a permanent data storage medium within one business day following receipt of the final expert report.
New regulations for health, injury, and loss of support insurance
Healthcare expenses coverage will cover all costs incurred during the treatment of third parties injured in traffic accidents, including prosthetic limb costs. Injury coverage will compensate third parties involved in an accident for future economic losses they may experience due to temporary or permanent disability.
Compensation will be paid for the loss of support suffered by the relatives of a person who died in a traffic accident.
Rules regarding damage repair and recourse rights
If it is not possible to repair the original parts in the damaged vehicle, replacement with original parts will be prioritised. However, with the vehicle owner's consent, or if the original part is unavailable, reusable or equivalent parts may be preferred. The burden of proof that these conditions are met rests with the insurance company.
For vehicles determined to be severely damaged by an expert, compensation will not be paid unless the registration certificate bearing the "Withdrawn from traffic" stamp is presented to the insurance company.