DASK policyholders will get high coverage without paying any premium difference

With the aim of encouraging all homeowners to buy compulsory earthquake insurance, DASK (Turkish Catastrophic Insurance Pool) is launching a new campaign called “DASK policyholders will win”. DASK has increased the coverage rates of compulsory earthquake insurance in accordance with the inflation rates, but will not charge any premium differences to homeowners. Highest amount of earthquake coverage to be paid for insured houses that are damaged due to an earthquake has been raised to 268 thousand TL, and cost per unit for concrete houses was raised to 1,268 TL. Erdal Turgut, Coordinator of DASK (Turkish Catastrophic Insurance Pool), states that they received nearly 25 thousand claims following the İzmir earthquake, and completed the assessment of 24 thousand of them. As a result, they have so far paid 234 million TL to policyholders. “What we experienced in İzmir showed us that DASK proved to be one of the most important precautions both for the earthquake and also for the pandemic. Our policyholders managed to cope with their problems resulting due to the earthquake, while having a chance to safely get a roof over their heads under the conditions imposed by the pandemic. We have launched this campaign to ensure that no one is left without earthquake coverage under the circumstances of the pandemic,” he said.

Turkish Catastrophic Insurance Pool (DASK) has initiated a new campaign to provide earthquake coverage for all residences in Turkey with Compulsory Earthquake Insurance as of 1 January 2021. Defined as a call for mobilization towards the target of 100 percent insurance rate, this campaign offers two significant opportunities for homeowners. The institution has increased the coverage rates in parallel with the inflation rate, but will not charge additional premium difference to policyholders. The campaign was launched with the motto “DASK policyholders will win”. In accordance with the Communique on the Tariff for Compulsory Earthquake Insurance that was published on the Official Gazette on 19 January 2021, the premium differences calculated due to the increased coverage rates will not be reflected to homeowners. Both first-time buyers and existing policyholders that will renew their policies will be able to benefit from this campaign. Erdal Turgut, Coordinator of Turkish Catastrophic Insurance Pool (DASK) underlined that they launched this campaign to ensure that no one is left without earthquake coverage under the circumstances of the pandemic.

“Covid-19 pandemic has left its mark on the year 2020 all around the world. It will most likely continue to be a significant issue this year. Unfortunately, we have experienced a devastating earthquake in İzmir while struggling with the pandemic. Owners of houses that were damaged during the earthquake but were covered by compulsory earthquake insurance were able to cope with the problems resulting from the earthquake, while having a chance to safely get a roof over their heads under the conditions imposed by the pandemic. What we experienced in İzmir showed us that DASK proved to be one of the most important precautions both for the earthquake and also for the pandemic. That’s why we have launched this campaign that will provide advantages and benefits to all homeowners.  We believe that this campaign is a highly significant opportunity to achieve the target of a country covered against potential earthquakes.”

Highest coverage raised to 268 thousand TL

Turgut stated that highest coverage to be paid for insured residences damaged in an earthquake was raised to 268 thousand TL.

 “As you know, DASK provides coverage for the reconstruction of houses after an earthquake. Reconstruction costs are updated according to the inflation rates on a yearly basis. In short, coverage provided by DASK for policyholders is raised in parallel with economic circumstances. In parallel, insurance premiums are increased as well. However, for 2021, DASK has decided to raise the coverage rate but not premiums,” he said.

Houses will be insured in exchange for an annual average premium of 163 TL

Turgut explained that annual premium for Compulsory Earthquake Insurance that will provide protection for a 100-square-meter concrete house located in İzmir and İstanbul is 268 TL.

“100-square-meter concrete houses can be insured for an annual premium of 90 TL in Ankara and Gaziantep; 129 TL in Ardahan; 59 TL in Ağrı, Artvin, Giresun, Kayseri, Niğde, and Rize; 38 TL in Aksaray, Yozgat, Nevşehir, Kırşehir; 129 TL in Antalya; and 173 TL in Bursa. Within the scope of this campaign, average annual premium is 163 TL,” he said. 

Target is 100 percent insurance rate

Turgut reminded that demand for Compulsory Earthquake Insurance increases right after an earthquake. “During the first week after the İzmir earthquake, number of policies issued in the Aegean Region had increased over 100 percent on a daily basis. Now, it continues as 5 percent higher compared to the term before the earthquake. Number of insured residences in İzmir increased from 635 thousand to 689 thousand. Number of policies issued across Turkey has increased by 5 percent on a daily basis. With this new campaign, we aim to maintain this awareness and increase insurance rates to reach 100 percent,” he said.

94 percent of claims were paid in 2 months

Turgut emphasized that DASK started paying out claims of policyholders in the 72nd hour of the earthquake in İzmir.

“So far, we have received nearly 25 thousand claims from 16 cities that were hit by the earthquake. We have completed the assessment of 24 thousand of those files, and paid out 234 million TL to our policyholders. 94 percent of our policyholders received their payments in two months and started building their new lives. DASK went to the field immediately after the earthquake and set up DASK communication centers in two different points to provide on-site support for policyholders, which has made a great contribution to the efficient and swift management of this process. Our best reward was to receive thank-you messages and calls we received from our policyholders. We are now working on a series of commercial films which will feature the exemplary stories of some of our policyholders. You will be able to watch them soon,” he said.

Total amount of compensations paid by Turkish Catastrophic Insurance Pool (DASK) since its foundation has reached 700 million TL, including the payments made after İzmir earthquake. DASK’s solvency was raised to 40 billion TL as of November 2020.