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A COMPARISON BETWEEN THE TURKISH AND EU MTPL INSURANCE EXPERIENCES OF THE TURKISH MOTOR INSURERS’ BUREAU

A COMPARISON BETWEEN THE TURKISH AND EU MTPL INSURANCE EXPERIENCES OF THE TURKISH MOTOR INSURERS’ BUREAU. MINIMUM LIMITS OF INSURANCE. The limits in Turkey for 2014 are as follows : Property damage : EUR 9 .000 (26.800 TL.) per vehicle and

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A COMPARISON BETWEEN THE TURKISH AND EU MTPL INSURANCE EXPERIENCES OF THE TURKISH MOTOR INSURERS’ BUREAU

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  1. A COMPARISON BETWEEN THE TURKISH AND EU MTPL INSURANCEEXPERIENCES OF THE TURKISH MOTOR INSURERS’ BUREAU

  2. MINIMUM LIMITS OF INSURANCE Thelimits in Turkeyfor2014 are as follows: Property damage: EUR 9.000 (26.800 TL.) per vehicle and EUR 18.000(53.600 TL.) per accident. Bodily injury:         EUR 90.000 (268.000 TL) per victim and maximum EUR 2.770.000 (8.308.000 TL.) per accident.

  3. MINIMUM LIMITS OF INSURANCE StartingfromJune 2012 insurancelimits in EEA countrieswill be: Property damage: EUR. 1.120.000 per claim, whatever the number of victims. Bodily injury: EUR. 1.120.000 per victim or EUR. 5.600.000 per claim, whatever the number of victims.

  4. POLICE REPORT VERSUS CONSTAT AMIABLE Since April 2008 a constat amiable has been used in Turkey regarding accidents which involve only material damage. Foraccidentsinvolvingpersonalinjuriesanddeath a policereport has tobe issued. The situation is similar in most european countries.

  5. DIRECT COMPENSATION SYSTEM In some countries damaged party can apply and get compensated by his/her own MTPL insurer (example: France, Italy). There is an agreement beween insurers regarding recourse. It is not applied in Turkey.

  6. DIRECT COMPENSATION SYSTEM First Party Cover: MTPL insurer compensates the injured driver even if he/she is at fault (Sweden). It is not applied in Turkey.

  7. TRUCK-TRAILER SITUATION In Turkey, trailers which are not used to carry passengers are not required to be covered by a seperate MTPL policy. Suchtrailersarecoveredbythe MTPL policy of thetrucktheyareattachedto. If the truck can not be identified then there is nobody to compensate the victim because the Guarantee Fund does not cover property damages.

  8. TRUCK-TRAILER SITUATION The situation in the EU varies from country to country. Inmostcountriestrailersarecoveredbythe MTPL insurer of thetrucktheyareatachedto. Ifthetruck can not be identifiedusuallytheGuaranteeFundcompensatesthevictim. Inothersthevictim is entitledtoapplyeithertothe MTPL insurer of thetruckorthetrailer.

  9. TRUCK-TRAILER SITUATION In Germany for instance according to a recent decision of the Supreme Court compensation is divided between MTPL insurer of the truck and trailer as 50/50 %. InSpaintheliability is 70/30 % forthetruckandtrailerrespectively.

  10. TOTAL LOSS, CAR HIRE COSTS, LOSS OF USE Regarding total loss there is no specificcriterion in Turkey about what constitues a total loss. Total Loss = damagebeyondrepair. Total Loss = repaircosts > thereplacementvalue of thevehicle (second-handvalue of thevehicleminussalvage)

  11. TOTAL LOSS, CAR HIRE COSTS, LOSS OF USE However,some countries have specified a certain percentage for a total loss. Iftherepaircostsexceed a certainpercentage of thereplacementvalue of thevehiclethenthevehicle is considered a total loss. For example 130% in Germany, 80% in Bulgaria.

  12. TOTAL LOSS, CAR HIRE COSTS, LOSS OF USE Car hire costs and loss of use are not covered by the turkish MTPL insurance. Inmany EU countriesthevictim can choosetoapplyeitherfor car hireorloss of use. Some countries have restricted car hire costs and loss of use to cases only where the vehicle is required for business purposes.

  13. TIME TO MAKE AN OFFER TO THE CLAIMANT AND SETTLE A CLAIM The time period to settle an MTPL claim in Turkey is 8 working days on condition that all necessary documents are complete. Accordingto EU Motor InsuranceDirectivesthe MTPL insurer has tomake a reasonedoffertotheclaimantwithin a period of 3 monthsmaximumfromthedate of theclaimnotification.

  14. PERSONAL INJURIES Cost of medical treatment Startingfrom 2011 MTPL insurers in Turkeyare no longerresponsibleforcompensatingvictims in respect of medicaltreatmentcosts. Instead,the insurers transfer approximately 15% of their MTPL insurance premium to the Social Security Institution. Allhospitalsarerequiredtoprovidemedicaltreatmentto a victim of a roadaccidentfree of charge.

  15. PERSONAL INJURIES Cost of medical treatment In some EU countries there is a similar system. In some countries, there is no transfer of a certain percentage of premiums in advance from the MTPL insurer to the Social Security Institution and this institution is entitled to recourse. 

  16. PERSONAL INJURIES Loss of earnings: In all countries including Turkey loss of earnings due to inability to work are covered. Funeral expenses: In all countries including Turkey such expenses are covered.

  17. PERSONAL INJURIES Compensation for pain and suffering (moral damage) Thiskind of compensation is not coveredbythecompulsory MTPL insurance in Turkey. Thevictim has therighttorequest moral damagecompensationfromtheliabledriver/operator of thevehicle but can not claim it fromthe MTPL insurer.

  18. PERSONAL INJURIES Compensation for pain and suffering (moral damage) In the EU countries (except Malta) compensation for pain and suffering is paid. The level of compensation varies from country to country. Some countries use table systems: Spain, Italy, France. No table system exists in others: Germany, The Netherlands, Austria, Portugal,UK.

  19. GUARANTEE FUNDS TheTurkishGuaanteeFunddoes not coverpropertydamagesexceptwhentheinsurer has gonebankrupt. Only bodily injury such as treatment expenses, disability or death are covered. It is in contrastwiththe EU GuaranteeFundswhichcoverbothpropertydamageandbodilyinjury.

  20. LEGAL COSTS AND COURT FEES InTurkeyout-of-courtlawyer’sfeesare not paidby MTPL insurers. Incase of a courtcase, the MTPL insurer of thelosingparty has to pay courtfeesand a certainamount of theoppositeparty’slawyerfees.

  21. LEGAL COSTS AND COURT FEES The situation in the EU varies from country to country. Inmost of themcourtfeesarepaidbythe MTPL insurer of thelosingpartyandregardingout-of-courtlawyer’sfeesthesituationagaindepends on thecountry.

  22. LIABILITY LAW InTurkeythedamagedparty can requestcompensationfromboththedriver, operatorand MTPL insurer. Strict liability is applied in respect of the operator of a vehicle. However, in order for the operator and the MTPL insurer to be liable the driver has to be at fault (he has to break a traffic rule). Therefore, in respect of the driver fault based liability is applied in Turkey.

  23. LIABILITY LAW Some EU countrieshaveadopted a strictliabilitysystem. Many EU countrieshaveadopted a strictliabilitysystemalongside a faultsystem. As a result, many Member States in fact combine both systems.(Fault liability for property damage and Strict Liability for personal injuries).

  24. THANK YOU

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