Turkey Insurance Information

CIA link to demographic/economic data on Turkey

General Turkey Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation;
  3. Employers’ Liability (employers are legally liable);
• Non-Admitted Insurance:
  Prohibited for non-life insurers except for Transport insurance related to import/export. Marineand Aircraft Hulls are also exempt. Life, Personal Accident and Motor insurance for people traveling outside Turkey can be externally arranged.
• Policy Wordings & Rates / Tariffs Controlled:
  Motor Third Party Liability insurance under the Turkish Road Traffic Act are adjusted each year in line with inflation.
• Policy Language:
  Turkish
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation (under Social Security Scheme).
• Policy Currency:
  Turkish lira (TRY); old Turkish lira (TRL) before 1 January 2005
• Currency Restrictions / Exchange Controls:
  No restrictions in the remittance of insurance premiums.
• Tariffs:
  Until 1990, Turkey was a strictly regulated market. In that year all tariffs, with the exception of compulsory Motor TPL, were discontinued. Since then, 2 tariffs have been introduced: liabilities for handling dangerous material in 1991; and the Earthquake and Volcanic Eruption tariff in 1993.
• Policy Period:
  Annual.
• Cancellation Provisions:
  In case policy premiums are not paid on the date specified on the policy, the cover ceases after 15 days of the due date. If payment is not made in the following 15 days, the policy is cancelled without any notice of cancellation.
• Premium Taxes:
  Companies pay 3% Corporation tax on profits into a fund for the costs of the Supervisory Authority. The Insured is required to pay:
  10% levy on Fire policies;
  5% premium tax on all non-life policies except Agricultural insurance;
  2% additional premium towards Guarantee Fund on Compulsory Motor policies.
  The Insurer pays:
  1% of the total income on Compulsory Motor Third Party Liability into the same fund.
• Premium payments:
  Usually 25% due at inception and the balance can be paid in 5 installments.
• Insurance Companies:
  100% foreign ownership permitted.
• Brokers:
  
• Brokerage Commissions:
  N/A
• Broker of Record Letters:
  N/A
• Coinsurance:
  Some local coinsurance takes place.
• Reinsurance:
  After a compulsory cession to Milli Re, companies face no restrictions..
• Local Natural Hazards:
  Earthquake.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion. Earthquake, riot / civil commotion, malicious damage and terrorism available for additional premium.
• All Risk:
  Negotiable.
• Coinsurance:
  100%
• Blanket Insurance:
  Available.
• Business Interruption:
  German wordings form the basis.
• Reinstatement Value:
  Available.
• Discount for fire protection equipment / systems: Available.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Various standard forms with comprehensive extensions of coverage available.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability. Product Liability can be included.
• Comments:
  Coverage is usually written on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  Material damage limits: TL 250,000,000
  Medical Expenses: TL 1,500,000,000 per person
  Death & Disability: TL 1,500,000,000 per person
  
• Comments:
  These limits above became effective March 1997. Passengers are regarded as Third Parties except close relatives and the employees of the vehicle owner. The basic Own Damage policy covers Fire, Theft and Collision. Comprehensive cover (EQ, Flood, SRCC & Terrorism) is available for an additional premium. The Own Damage policy coverage usually applies to the Insured and any licensed person driving with the Insured’s permission. Fleet rates are available.

Workers’ Compensation

• Comments:
  This compulsory coverage falls under the Social Security Scheme and covers all employees.

Marine

• Available Wordings:
  Clauses of the Institute of London Underwriters apply. War and Strikes risks follow the London scale.

Crime

• Available Coverages: