Insurance Law

Turkish Insurance Law refers to a legal structure that regulates coverage transactions in Turkey. It includes the fundamental rules that govern the functioning of the insurance sector and the rights and obligations of the parties. To understand the structure of this legislation more fully, it is better to look at this subject in more detail. 

The Core Components of Turkish Insurance Law

The core components of Turkish insurance law regulate Turkey's coverage industry. The core components that form its foundation help establish a legal framework that protects the interests of both policyholders’ and insurers’ rights while promoting a stable and transparent insurance market. These core components are policies, premiums and the rights and obligations of policyholders and insurers. 

Policies and Premiums 

The legal agreements between the insurer, which is an insurance company, and the policyholder, which is the insured individual or entity, are called policies. They include premium amounts, policy duration, terms, and conditions of the insurance contracts.

Premiums are the payments made by policyholders to the company in exchange for coverage. These aspects are integral to Turkish insurance law, ensuring protection for policyholders and mitigating risks for the companies.

Rights and Obligations of Policyholders and Insurers 

Turkish insurance law establishes both the rights and duties of policyholders and insurers. It lays out the insurer's obligation to compensate the policyholder in the event of covered losses and the insured's responsibility to pay premiums and give truthful information. It also addresses problems with policy extension, policy cancellation, and claim resolution.

Types of Insurance under Turkish Law 

Insurance is a system that provides assurance for risks that may arise in the future, although they have not yet emerged. Turkish insurance law includes various types of coverages to protect individuals from specific conditions, which include health, travel, car, home, and earthquake. 

Health Insurance in Turkey 

Health insurance in Turkey plays an important role in covering medical expenses and healthcare services. It aims to ensure that individuals and families have access to quality healthcare services and that their financial protections are provided. 

With its comprehensive coverage, General Health Insurance is a required system in Turkey that is run by the Social Security Institution. It provides coverage for all Turkish nationals, residents, and some other people who are eligible for public health coverage. Also, some companies offer supplemental health insurance, which covers additional expenses that are not covered by SSI. 

With our qualified insurance lawyers in Turkey, we are more than ready to assist you in your health coverage-related legal cases. As a Turkish law firm that has English-speaking lawyers in Turkey, we provide consulting in this field.

Travel Insurance in Turkey 

Travel insurance offers protection for unexpected scenarios or emergencies. Medical costs, trip cancellation or interruption, missing baggage, and personal liability protection can be included in travel coverage. These policies and the cost of travel coverage can vary depending on providers, the destination, and the duration of the trip. 

Car Insurance in Turkey 

In the event of an incident, it covers property damage, medical costs, medical conditions, and the deaths of third parties. According to the insurance renewal law, it has to be renewed every year. The other type is comprehensive motor insurance, which is not mandatory but recommended. Unlike compulsory traffic coverage, it provides coverage for the insured vehicle itself. 

Home Insurance in Turkey 

Thanks to home insurance in Turkey, homeowners are financially protected from risks and harm to their residential properties. This type of Turkish insurance law provides coverage for the home's structure, contents, and legal responsibility for third-party damage. 

Earthquake Insurance in Turkey 

In case of damages caused by earthquakes, earthquake insurance in Turkey offers coverage that specifically protects homeowners. Compulsory Earthquake Insurance, called DASK, is mandatory for all residential properties. In the event of an earthquake, property owners are protected against it thanks to this system. 

Foreign Participation In Insurance 

According to Article 15 of the Insurance Law, any natural person or legal entity with a physical presence in Turkey is required to have local risks insured there by a Turkish coverage cooperative, company, or branch. For instance, in terms of foreign health insurance, Turkey provides universal health coverage through the Social Security Institution after one year of residency. 

FAQ About Insurance Law in Turkey 

Here are some FAQs about insurance law in Turkey in order to understand Turkish insurance law better. If you have further questions regarding this legislation, you can consult Istanbul Lawyer Firm, a renowned Turkish lawyer firm.

Can a Third Party Bring a Direct Action Against an Insurer?

Apart from some exceptions, a third party cannot bring direct action against an insurer, according to Turkish insurance law. According to Turkish Commercial Code (TCC), a third party can bring a direct action against the insurer when the insured party has become bankrupt, died, or a legal entity has been dissolved. 

Also, Article 1478 of the TCC clearly states that a third party who has been damaged may bring a claim or court action against the liability insurer, subject to the time limitations that apply to the insurance contract and the amount.

What is the Compulsory Insurance in Turkey?

Compulsory insurance is purchased by public institutions for the purposes of controlling public safety and ensuring the safety of individuals and third parties. In case of not purchasing these types of coverage, which are claimed to be legally compulsory, certain sanctions may be imposed by government agencies. Compulsory earthquake and traffic coverage are examples of mandatory regulations in Turkey. 

Who regulates insurance in Turkey?

The Ministry of Treasury and Finance regulates the insurance sector in Turkey. It works with the Insurance Supervisory and Regulatory Authority, and they are responsible for ensuring compliance with the relevant regulations and laws.