Page 11 - Turkinsurance Digital Magazine

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Located on geologically active fault lines, Turkey
is constantly face to face with an earthquake

hazard. However, despite this serious risk,
Turkey has still not developed the necessary
insurance awareness for earthquake insurance.
According to the updated statistics of TCIP

(Turkish Catastrophic Insurance Pool, or DASK
in Turkish), there are currently 9 million valid
earthquake insurance policies with an overall
insurance rate of 51.40 percent. Setting off from

these facts, we can easily conclude that Turkey
is not prepared for the risk of a potential major
earthquake.

Earthquake is an unpredictable and unavoidable natural disaster. Nev-
ertheless, we should not be scared of the earthquake itself but of being
uninsured against it. It is possible to provide both material and imma-
terial assurance when necessary precautions are taken. In this respect,
Compulsory Earthquake Insurance is of utmost importance in compen-
sating for the material losses rapidly after an earthquake. However,
this insurance has still not reached the expected penetration rates in
Turkey.

According to the up-to-date statistics by TCIP, number of valid Com-
pulsory Earthquake Insurance policies currently stands at 9 million,
while overall insurance rate for this product is 51.4 percent. These
figures prove that one of every two people is not under insurance pro-
tection against earthquakes in Turkey.

What is Compulsory Earthquake Insurance

TCIP stands for Turkish Catastrophic Insurance Pool (DASK - Doğal
Afet Sigortaları Kurumu in Turkish). The institution began its opera-
tions in 2000, with the aim of issuing, enforcing and managing Com-
pulsory Earthquake Insurance that covers for the material losses oc-
curring after earthquakes to ensure that citizens can carry on with their
daily lives. But why should we buy earthquake insurance; what are the
benefits?

This insurance provides financial coverage against losses in residences
caused by earthquakes within the limits specified in the policy. Cur-
rently, people are obliged to buy this insurance in order to receive their