Implementation guidelines for insurance experts have been prepared for the latest regulation on mandatory motor third-party liability insurance (also called traffic insurance), according to Mr Ahmet Nedim Erdem, Chairman of the Executive Committee of Insurance Experts of the Union of Chambers and Commodity Exchanges of Türkiye (TOBB).
The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) implemented the regulation, which aims to reduce disputes arising from depreciation calculations in traffic insurance and ensure more efficient, fair, and rapid compensation processes. Accordingly, calculating compensation for the depreciation in vehicle value has become an integral part of the damage assessment process. The traffic insurance regulation entered into effect on 1 July.
In a written statement, Mr Erdem said that the Executive Committee has conducted comprehensive technical studies to ensure the new system could be implemented nationwide with common standards. The implementation guidelines are to ensure uniformity in application among all loss adjusters.
The implementation guidelines deal with matters including how the principle of actual damages will be applied, technical inspection criteria, the method of calculating depreciation, reporting standards, and the objective data to be used in the calculations. The Committee has disseminated the guidelines to all insurance adjusters.
"Furthermore, professional training activities related to the subject have been organised. Thanks to these efforts, insurance adjusters working throughout Turkiye will make calculations within the framework of common technical standards, and rights holders will quickly receive technical, objective, fair, and accurate compensation for depreciation," said Mr Erdem.
New loss assessment process
He said, “Under the new system, the insurance adjuster will examine the physical damage of the vehicle, the repair method, the parts replaced and repaired, the previous damage status, and the general technical specifications of the vehicle on-site, prepare the damage report, and calculate the depreciation in the value of the vehicle within the same process.
“Thus, the depreciation calculation has ceased to be a separate, independent process from damage assessment. It has transformed into an integrated expert assessment process based on technical examination of the damage."
Claimants no longer need to initiate a separate claim process for diminished value compensation.
Previously, the application of different methods in calculating depreciation for many years had led to different compensation amounts and numerous legal disputes.