The amendment of the regulation on compulsory traffic insurance which was published on the Official Gazette on 21 December 2018 stipulated that the coverage limits be updated automatically.

In this respect, as of the beginning of the second half of the year (1 July), the limits of compensations to be paid by insurance companies for accidents resulting in material damages have been increased.

Minimum 8 percent of increase every 6 months

Amounts of compensations to be paid for health expenses, disability/death and financial compensations were determined according to the Regulation on Tariff Implementation Principles for Motor Vehicles Compulsory Third Party Liability Insurance. The regulation also states that the amounts will be revised every six months. Amount of compensation to be paid by insurance companies was increased from 36 thousand TL to 39 thousand TL. Compensation for disability and permanent disability was raised from 360 thousand TL to 390 thousand TL. Compensation per accident was raised from 72 thousand TL to 78 thousand TL. According to those rates, compensations of July 2019 increased by 8 to 8.5 percent compared to those of January 2019.

What does insurance cover?

Those compensation limits will be applied to motor vehicles used for human transportation, motor vehicles used for transportation of goods, trailers and construction equipment, agricultural equipment and special purpose vehicles, motorbikes and freight trikes.
As of 1 July, compensations to be paid for health expenses, disability/death and financial compensations were increased up to 390 thousand TL per person, and between 1 million 170 thousand TL and 3 million 900 thousand TL per accident depending on the group of vehicles. Compensations for accidents with material damages were raised up to 39 thousand TL per vehicle and 78 thousand TL per accident.

Seyda Köksal, Manager of Tariffs & UW & Technical Reporting at Quick Sigorta, comments on the amendments as follows: “With the regulation amendment dated 21 December 2018 by the Treasury, all compensations to be valid until 2022 were shared with the public in detail. The fact that amount rises are scheduled is important so that the market knows which compensations they will be paying in the future. However, the continuing shrinkage of the market, negative impacts of the fluctuations in exchange rates, and the fact that vehicle owners are even abstaining from buying traffic insurance despite being compulsory all cause the income/expense imbalance of the traffic line even further.”