As some part of the measures and limitations taken against Covid-19 pandemic have been lifted on June 1, motor and traffic insurance products are once again under spotlights with the freedom of movement between cities for those who will prefer road trips. Insurance Association of Turkey (TSB) made an announcement underlining the importance of motor and traffic insurance within the scope of the “new normal” including Covid-19 precautions.
Atilla Benli stated that insurance market supported citizens with practices such as postponing premium payments that continued for Compulsory Traffic insurance during Covid-19 pandemic. He added:
“With the beginning of ‘new normal’, we see that traffic between cities have increased due to the fact that we are in summer months and inter-city travelling restrictions have been lifted. It is important for drivers to buy their insurance policies in order to make sure that they guarantee the safety of their own vehicles via motor insurance and provide coverage for their liability in case of a potential traffic accident via traffic insurance. According to Turkish Statistical Institute, we know there are 23.4 million vehicles in Turkey as of April 2020; however only 18.3 million vehicles have traffic insurance coverage and 5.9 million vehicles have motor insurance coverage. Therefore, we are recommending vehicle owners to control their motor and traffic insurance policies, and not neglect renewing their expired policies.”
Having paid 4.2 billion TL in compensations for traffic and motor insurance policies as of the end of April 2020, insurance market provides coverage for financial and physical damages inflicted on third parties due to a traffic accident caused faultily by a vehicle owner. Motor insurance policies provide coverage against financial damages inflicted on the policyholder’s vehicle as a result of accidents. Voluntary liability insurance is also important as it provides coverage for the amounts exceeding traffic insurance coverage limits and mental anguish claims.
TSB supports policyholders during Covid-19 pandemic through recommendations for insurance companies
Insurance Association of Turkey had recommended member companies to collect premiums of Compulsory Traffic insurance policies issued after April in 5 credit card installments, and to postpone the continuing premium collections for April and following months for one month without charging any additional fees. Plus, they recommended insurance companies to apply discounts and/or extension of coverage where necessary as well as other simplifying practices they deem necessary for Compulsory Motor Third Party Liability Insurance and Compulsory Seat-Based Personal Accident Insurance for Highways Passenger Transportation policies that are not in the scope of Risky Insurance Pool.