This insurance secures the insurance holder against the consequences of accidents that may occur during the insurance period within the terms and conditions specified in the policy.

The term accident in this policy refers to the death or physical injury encountered by the insurance holder as a result of a sudden and external incident.

One or both of daily indemnities and treatment expenses in addition to the following death and permanent disability guarantees specified below may be provided on condition that the guarantees provided and not provided are specified in the front page of policy.

This coverage is valid also outside the borders of Turkey.

Incidents of earthquake, flood, volcanic eruption and landslide are excluded from the coverage of insurance. However, they may be included in the coverage with an additional agreement.

Personal accident insurance value is determined within specific principles in consideration of the characteristics of insurance holder, such as age and occupation. The amount of indemnity payable according to the policy is determined with agreement between the parties in advance.

The Law no. 5947 on Full-time Work by University and Healthcare Personnel and on Amendments to Specific Laws was published in the Official Journal dated January 30, 2010 and issue no. 27478; and the additional article 12 that was added to the Law no. 1219 on the Mode of Execution of Medicine and Medical Sciences under the 8th article of aforementioned law stipulated the obligation to take out compulsory professional liability insurance for doctors. General Terms and Conditions, Tariffs and Regulations for Compulsory Liability Insurance regarding Medical Malpractice entered into force on July 30, 2010 and was published in the Official Journal of July 21, 2010, issue no. 27648.

While the doctors, dentists and specialists according to medical specialization working self-employed or in public or private healthcare institutions and organizations are practicing their profession specified in the policy, within the Law no. 1219, Additional article 12.

a) the damages that arise as a result of incident occurred during the contract period and that are claimed to be indemnified during or after the expiration of contract in accordance with the provisions of liability,

b) claims that may arise against the insurance holder only within the contract period due to an incident occurred before the contract or while the contract was in force,

c) hearing expenses in connection with this loss and claim

The Law no. 5947 on Full-time Work by University and Healthcare Personnel and on Amendments to Specific Laws was published in the Official Journal dated January 30, 2010 and issue no. 27478; and the additional article 12 that was added to the Law no. 1219 on the Mode of Execution of Medicine and Medical Sciences under the 8th article of aforementioned law stipulated the obligation to take out compulsory professional liability insurance for doctors.

The premiums are determined in accordance with the Tariffs and Regulations for Compulsory Liability Insurance as published in the Official Journal dated 21.07.2010 and issue no. 27648.

In the general terms of conditions that came into force on 01.04.2013;

the product names and contents were identified as Limited Motor Own Damage Insurance, Motor Own Damage Insurance, Expanded Motor Own Damage Insurance, Full Motor Own Damage Insurance.

Limited Motor Own Damage: This is a product under which guarantee is provided for all the guarantee groups specified in the general terms and conditions of motor own damage insurance.

Motor Own Damage: This is a product under which guarantee is provided for the entire guarantee groups specified in the general terms and conditions of motor own damage insurance.

Expanded motor own damage: This is a product under which guarantee is provided for all the guarantee groups specified in the general terms and conditions of motor own damage insurance as well as some of the risks that may be included in the coverage with an additional contract in such general terms and conditions.

Full motor own damage: This is a product under which guarantee is provided for all the guarantee groups specified in the general terms and conditions of motor own damage insurance as well as all the risks that may be included in the coverage with an additional contract in such general terms and conditions.

Whichever product specified above fits to the content of coverage, the title of policy shall contain the name of such product written in at least 16 point size letters.

No phrases other than those phrases specified with regards to the coverage in these Generals Terms and Conditions may be used in the policy. The names of products sold must be consistent with the coverage provided.

The motor own damage insurance holder is, firstly, obliged to notify the case to the insurer not later than 5 work days after he/she learns about the date of damage. And he/she should take necessary rescue and protection measures, as if he/she is not an insurance holder, and should show best efforts to comply with the instructions of insurer for this purpose.

In case of theft of vehicle, he/she must notify the situation to authorized bodies immediately as he/she becomes aware of it. Also he/she should present the information and documents to the insurer without delay for use in recourse transactions. Estimated amount of damage and the incident causing such damage should be submitted to the insurer as a statement in written within a reasonable and suitable period of time. 

Motor own damage insurance secures material damages to your own vehicle. Traffic insurance, on the other hand, is a mandatory insurance that secures material and physical damages caused by your vehicle to third persons.

Traffic insurance covers only the damages to third persons and does not pay for the damages of your vehicle. In this case, motor own damage insurance must be taken out.

The companies make package policies in order to improve the coverage. In this context, additional policies are provided in coverage such as Facultative Liability Insurance, Personal Accident Insurance, Travel Motor Support Insurance together with the motor own damage insurances.

For instance; traffic insurance does not cover claims for non-pecuniary damages; whereas, the claims for non-pecuniary damages may be secured under coverage with an additional contract through Motor Land Vehicles Facultative Liability Insurance in addition to the Motor Own Damage insurance. 

Damage indemnities are arranged. In this way, the policy will clearly specify how the damages would be indemnified. In case of repairs, the policy will contain the information as to which services specified by the company or the services determined by the insurance holder would be doing the repairs and as to whether original parts or equivalent parts would be used for the indemnification of damage.

The policy will contain the information as to which services specified by the company or the services determined by the insurance holder would be doing the repairs and as to whether original parts or equivalent parts would be used for the indemnification of damage.

The period of payment for indemnities was also arranged and it is stipulated that, if it is agreed to present the documents required by the insurance company in full and to determine the damage through an expert, required investigation will be completed within no later than 10 days from the delivery of expert report under the General and Special Terms and Conditions and the indemnity amount will be determined and paid to the insurance holder in the absence of any obstacle against payment; and that, in any case, the indemnity payment will become due 45 days after the notice of damage. 

In accordance with the General Terms and Conditions of Motor Own Damage Insurances that entered into force on 1.4.2013, the Insurance Amount section will not include any specific total and the policy will contain the statement “The insurance company has secured the vehicle up to its market value as of the date of damage.” On the other hand, the policy will include the reference that will be considered in market value or the calculation method for market value; and if there is not any determination in this respect or the determination is not substantial, then the list published by the Insurance Association of Turkey will be taken as basis.

Under this arrangement, it is stipulated to note in the policy that under-/over-insurance will not be applicable in case of damage; and the provisions regarding under-insurance and over-insurance are removed from the general terms and conditions. 

If the beneficiary is changed within the contract period in compliance with the related regulations, insurance contract is automatically terminated at the time of change in beneficiary; and the premiums for the term until the termination takes effect are calculated on a daily basis and extra premiums are returned to the policy owner. Maintaining the policy with the new beneficiary may be decided despite the change of beneficiary in the insurance contract. 

All the rights and benefits as well as the liabilities would be transferred to the legal successors and heirs. Certificate of inheritance must be presented for the transfer. 

According to the regulations, change of ownership for the vehicles is possible through sale before a notary. The capacity of operator does not change without a sale before a notary. Personal agreement between the parties does not remove the liabilities of seller. 

No claim bonus will continue. The level of no-claim bonus may be followed online by all insurance companies via SBM (Insurance Information and Monitoring Center) for Motor Own Damage Insurances. 

Yes, it will be maintained. When you buy a new vehicle, the new vehicle should be included in the policy with an additional policy. In case of premium difference for two vehicles, then it will be collected from the insurance holder. 

Damages that may occur during the transport of vehicle on authorized and scheduled ships and trains, on which the vehicle will be loaded with self-power, are included in the coverage; whereas, any possible damages during other transportations are excluded from the coverage. 

Damages to occur during the towing of vehicle by a public authority are included in the coverage. 

Standard tires and rims are included in the automatic coverage. Since the values of special tires, steel rims further added are different from standards, their value should be determined in agreement between the insurance holder and insurer and should be specified in the policy separately. Non-original devices such as radio, audio, speakers, equalizer, air-conditioner, alarm, wireless, telephone, fax, automatic antenna, tachometer, etc. may be included in the coverage of motor own damage insurance policy only subject to additional premiums. Brands and values of such devices must be shown on the motor own damage insurance policy. If such devices are present in the original of vehicle, they must be specified as original. 

In case of damage to the insured vehicle as a result of an accident included in the coverage of motor own damage insurance (theft excluded), the “transportation expenses” resulting from the loss of use and income for private vehicles and the “business interruption” for commercial vehicles may be secured through additional premium with damages subject to the limits specified, within the reasonable period of repair. 

If the investigations of related authorities for finding the stolen vehicle fail to result in 30 days, then the insurer will pay the indemnity upon letter from the related authority regarding the failure. If the stolen vehicle is found following such payment, the insurance holder is obliged to notify the insurer of the incident immediately; the insurance holder may choose to return his/her vehicle by returning the indemnity or transfer the ownership of vehicle to the insurer. 

Theft and attempt of theft is excluded from the coverage in Machinery Breakdown Insurances. 

Insurance coverage is terminated in case of any damage to the assets under the insurance and if such damage is a full damage. In case of partial damage, insurance amount is reduced as much as the indemnities paid as of the date of damage. 

Provisions regarding the terms of termination are included in the General Terms and Conditions for Assembly Insurances. First of all the parties (insurant, insurance holder and insurer) may use their right for termination in accordance with the provisions of these general terms and conditions; these provisions contain different applications based on the Declaration Liability of Insurant, Liability of Notice within the Insurance Period, and Change of Property. 

Scope of guarantee only covers the production defects; whereas, damages by user and damages such as fire, theft, acts of god, etc. must be secured under Electronic Equipment Insurance for electronic equipments and Fire and Machinery Breakdown insurance for the machinery in order to indemnify the damages. 

Maintenance bond starts with the completion of building or provisional acceptance, or delivery to the employer or use by the employer and ends with the final acceptance by the employer. Any damages and losses caused by the contractor to the insured assets during his/her actions for remedying the deficiencies and faults according to his/her liabilities under the terms of contract as well as the damages and losses due to a reason that occur during the maintenance bond and under the responsibility of contractor during the construction period are guaranteed. Coverage for fire, acts of gods, etc. are provided with additional policy. 

There is not any legal obligation for taking out transportation insurances. However, transportation insurances have become financial obligation because of banks requiring guarantee through insurance for the transportation of commodity (cargo) and of high amounts subject to risk in hull insurances and due to mortgage holders seeking insurance coverage. 

Transportation insurances are of international quality. For the insurance of cargo subject to the import or export, one of the parties to the sales contract would be foreign; therefore, both the buyer and the seller must agree on a standard and internationally accepted insurance coverage. On the other hand, same obligation is present in hull insurances in terms of foreign third persons (vessel, post authority, etc.) that may be dealt with during the operation of vessel. Thus, the cargo and hull clauses issued by the Institute of London Underwriters, which is generally accepted and used in our country as well as the world, are included and used as special terms in transportation insurance policies. 

Factors playing role in the pricing of goods transportation (cargo) insurances may be classified under four sections.

- Type of goods, packaging, way of transportation
- Travel
- Means of transport
- Coverage 

The factors playing role in the pricing of hull insurances may be summed in five sections.

- Type of vessel
- Insurance value of vessel
- Age and tonnage of vessel
- Coverage
- Sailing area and scope of vessel 

The declaration of person to take out the insurance is the basis for health insurances. Therefore, the demanding person must not make misleading statements to the insurance company. Misleading statements or remaining silent in a way to result in misleading information would give the insurance company the right of withdrawal from contract.

The person taking out the insurance pays for the policy after being agreed in mutual consent with the insurance company. In case of any exemption, discount or additional premium practice in the policy, the person taking out the insurance must be aware of this in detail.

The person taking out the insurance must read the policy and its annexes to fully be aware of the coverage presented in the policy and so the liabilities of insurance company and the person taking out the insurance. 

The liability of insurance holder starts with the payment of first installment of policy. The insurance starts at 12:00 p.m. and ends at 12:00 p.m. Turkey time on days written as starting and expiration dates on the policy, unless otherwise is agreed. 

The insurant or insurance holder is liable to present the documents showing examination, treatment, medicine and hospital expenses payable as a result of accident or disease in originals or copies that would not cause suspicion, in the annex to the notification and treatment forms filled in by the treating physician or hospital. 

Expenses for the illnesses and accidents that occur after the starting date of health insurance are within the coverage as defined in the special and general terms and conditions and exceptions of policy and they are covered within the coverage. 

It is a kind of insurance which guarantees legal liabilities of employer for losses of employees who work contractually or subject to Social Insurance Institution Law in a workplace during their fulfillment of their liabilities.

Employer’s Liability insurance is facultative not compulsory. 

Third Party Liability insurance secures physical and material damages that the insurance holder in person or the persons employed by him/her as well as members of their family may give to third parties as a result of an accident within the limits specified in the policy. 

Those who are bound to the real person as the insurance holder with a service or proxy relation, members of his/her family (insurance holder’s spouse, those he/she adopted, those adopting the insurance holder, if residing with the insurance holder, his/her siblings, sons-in-law, daughters-in-law, and other dependent relatives, siblings of insurance holder’s spouse by law and posterity) as well as the unlimited partners and authorized persons of legal entity as the insurance holder are not considered as third party. 

 It is a kind of insurance that guarantees claims asserted by third parties due to accidents that may occur in commercial building or residence building elevators to a certain limit. 

Any damages and losses that occur due to exceeding the carrying capacity of lifts in commercial buildings or residence buildings are excluded from the coverage. 

It is a kind of insurance that liquid petroleum gas (LPG) companies which store LPG and bottle, cause to bottle, transport, sell it to consumers directly or via authorized dealers and are obliged to obtain license for those activities.

This insurance would cover any physical and material damages incurred by others as a result of explosion or gas leakage of tubes at the location that liquid petroleum gas companies fill or have such tubes filled via authorized dealers or market directly (whether they have fault or not) under their brand. However, any physical and material damages incurred by others as a result of explosion or gas leakage of tubes at the place of authorized dealer for not using but selling purposes will be covered from Hazardous Materials Compulsory Liability Insurance. 

This is an insurance that those who produce, store, transport or sell inflammable, combustible, explosive and burning materials are obliged to take out. 

The Undersecretariat of Treasury publishes Tariffs and Regulations containing the limits for this insurance. 

Bottled Gas Compulsory Liability Insurance secures the liabilities of companies bottling liquid petroleum gas (LPG) against any physical and material damages they may cause as a result of explosion, gas leakage, fire at the place where the bottles filled or having filled and provided to the customers via authorized dealers or directly are stored for use (whether they have fault or not). Whereas, Hazardous Materials Compulsory Liability Insurance secures the liabilities of those producing, storing, transporting or selling inflammable, combustible, explosive and burning materials against any physical and material damages they may give to third persons, whether they have fault or not, as a result of incidents caused by such materials directly because of their such professional activities. 

The Law no. 5947 on Full-time Work by University and Healthcare Personnel and on Amendments to Specific Laws was published in the Official Journal dated January 30, 2010 and issue no. 27478; and the additional article 12 that was added to the Law no. 1219 on the Mode of Execution of Medicine and Medical Sciences under the 8th article of aforementioned law stipulated the obligation to take out compulsory professional liability insurance for doctors. General Terms and Conditions, Tariffs and Regulations for Compulsory Liability Insurance regarding Medical Malpractice entered into force on July 30, 2010 and were published in the Official Journal of July 21, 2010, issue no. 27648.

This insurance contract covers;

a) the damages that arise as a result of incident occurred during the contract period and that are claimed to be indemnified during or after the expiration of contract in accordance with the provisions of liability,

b) claims that may arise against the insurance holder only within the contract period due to an incident occurred before the contract or while the contract was in force,

c) hearing expenses in connection with this loss and claim

while the doctors, dentists and specialists according to medical specialization working self-employed or in public or private healthcare institutions and organizations are practicing their profession specified in the policy, within the Law no. 1219, Additional article 12. 

The Law no. 5947 on Full-time Work by University and Healthcare Personnel and on Amendments to Specific Laws was published in the Official Journal dated January 30, 2010 and issue no. 27478; and the additional article 12 that was added to the Law no. 1219 on the Mode of Execution of Medicine and Medical Sciences under the 8th article of aforementioned law stipulated the obligation to take out compulsory professional liability insurance for doctors.

 The premiums are determined in accordance with the Tariffs and Regulations for Compulsory Liability Insurance as published in the Official Journal dated 21.07.2010 and issue no. 27648.

Traffic Insurance covers the damages caused by a motor vehicle wrongfully to third persons. In addition to the indemnity and material damages, the insurance makes payment to those receiving treatment because of the accident and, in case of disability or death of injured party, those who are destitute of the support of injured party. The indemnity for destitute of support varies by the age and income of person who lost his/her life or became disable. 

With effect of related Law in February 2011 which is known as Omnibus Bill in public, Social Security Institution (SGK) assumed all treatment expenses of accident victims and liabilities of insurance companies in this respect are thus removed.

All treatment expenses of casualties of a traffic accident, notwithstanding their level of fault or whether they general health insurance, including medical material and medicine expenses, will be covered by Social Security Institution (SGK) and SGK will make treatment expenses over the Notification of Healthcare Practices (SUT). 

Traffic insurance premiums are determined freely by insurance companies within the framework of the Regulation on Highway Motor Vehicles Compulsory Liability Insurance Tariff Application Principles.

In other words, each insurance company develops its tariff in conclusion to its actuarial method. However, it is essential that the insurance contracts concluded for those vehicles and/or operators having the same risk by the insurance company are arranged over the same premium. 

The entire insurance cost is paid in cash against the delivery of policy as soon as the contract is concluded. However, the parties may agree on the payment of insurance policy in installments on condition that at least one fourth of premium is paid in cash against the policy. In this case, the insurer waives from his/her right to terminate the contract due to failure to pay for the premium. 

Vehicle operators are liable to renew the insurance contract as of the date of its expiry. For every 30 days during which the vehicle operator fails to renew the insurance contract as of its expiry, the premium is calculated by adding 5%, but in any case limited to 50%, for the following contract. Furthermore, in case it is determined that your vehicle does not have any traffic insurance during controls by the traffic police, your vehicle is banned from traffic and penalty is applicable. 

Premiums are determined by each insurance company separately based on the damage and premium totals of each vehicle type. If a vehicle group causes more accidents and damage, then the premiums for such group of vehicles determined to be higher. 

Traffic Insurance only covers the damages to third persons and does not pay for your car’s damage; you should take out a motor own damage insurance for this.

Traffic Insurance does not cover claims for non-pecuniary damages. 

The claims for non-pecuniary damages may be secured under an additional contract with the Motor Land Vehicles Facultative Liability Insurance. 

Yes, it is. Insurance companies develop their own tariffs for each group of vehicles. One of the factors serving as basis for this tariff is the province that the vehicle is registered in. 

Yes, it is. If the passenger carriers subject to the Road Transport Code no. 4925 document that they have taken out Highway Motor Vehicles Compulsory Liability Insurance for possible physical damages to passengers as required by this Code, a discount of 20 percent is applicable. 

Yes, it is. Insurance companies apply no claim bonus or premium increased based on the scales and rates specified in the Regulation on Highway Motor Vehicles Compulsory Liability Insurance Tariff Application Principles . Premiums are applicable from fourth scale for first registration in the capacity of operator. 

The application of premium discount or premium increase due to indemnity payment follows the operator. 

Yes, the traffic insurance of a towing vehicle also covers the damages caused by a trailer, semi-trailer or another vehicle towed by that vehicle. However, if the trailers are used in carrying passengers, additional liability insurance must be taken out separate from the towing vehicle and containing special terms and conditions.

Damages caused by any vehicle delivered to the entities engaged in business regarding motor vehicles for the purpose of guarding, repairing, maintaining, buying-selling, amending the vehicle  are excluded from the coverage; and those who are engaged in business regarding motor vehicles are obliged to have liability insurance. Information regarding the coverage and premiums for those who are engaged in business regarding motor vehicles is specified separately in the Regulation on Highway Motor Vehicles Compulsory Liability Insurance Tariff Application Principles.

Damages caused by vehicles involved in a race are excluded from the coverage; and race organizers are obliged to have liability insurance. Information regarding the coverage and premiums for those who are engaged in business regarding motor vehicles and who organize races is specified separately in the Regulation on Highway Motor Vehicles Compulsory Liability Insurance Tariff Application Principles.

Yes. If there is such a loss, it is paid by the traffic insurance policy on condition to be within the limits of coverage. 

Yes. Hearing expenses and attorney’s fees are included in the coverage of traffic insurance policy provided to remain within the limits of policy. If the insurance holder is not faulty regarding the damage but an action is brought anyway, the Traffic insurance would also cover such expenses. 

The injured party is obliged to make their claims to the faulty party in 2 years from the date he/she becomes aware of the faulty party. However, even if the injured party does not become aware of the faulty party, his/her right of petition is forfeited 10 years after the date of accident in any way. Claims after this date are not covered. 

Indemnity for Traffic Insurance is paid within eight work days starting from the date that required documents are submitted to the center or any institution of insurer. 

Fire insurance covers the material damages caused directly by fire, lightning, explosion and resulting smoke, vapor and heat on insured property up to the insurance value. 

Damages that occur due to a strike, lockout, disorder, civil commotion, terror, earthquake and volcanic eruption, weight of snow, flood and submersion, landslide, storm, internal water, smoke, hit by car, land vehicles, vessels, aircrafts, willful misconduct may also be included in the coverage of fire insurance with additional contract. 

Paintings, pictures, books, engraving, writings, statues, bibelots, collections, carpets and similar that are valuable in terms of art and antiquity as well as the models, patterns, plans and sketches, letters patent, documents, commercial books; cash, share certificates and bonds, valuable paper, any kind of gold and silver and jewelry made of these and other valuable metals and products, valuable stones and pearls and similar may be included in the coverage provided to specify their insurance values separately in the policy. 

If the beneficiary changes within the contract period, the provisions of insurance remain and the rights and liabilities of insurant under the contract are transferred to the new right owner. In case of change, the new right owner becoming aware of the insurant/insurance holder and insurance is obliged to inform the situation to the insurer in 15 days. The insurer and new right owner may terminate the contract in 8 days from the date of becoming aware of the change, and of the presence of insurance for the latter. The right of termination is forfeited if not exercised within its specified period. Premium for the period until the date termination takes effect is calculated on a daily basis and extra premiums are returned to the new right owner. Insurant and the new right owner not exercising his/her right of termination are liable together for the premium debts payable at the time of change in the owner of insured property. 

In case of death of insurant, all the rights and liabilities under the contract pass to the new right owner. 

Premium total in fire insurance and additional coverage other than earthquake and volcanic eruption provided further to the fire insurance (strike, lockout, disorder, civil commotion, terror, flood and submersion, landslide, storm, internal water, smoke, hit by car, land vehicles, vessels, aircrafts, willful misconduct) is freely determined by insurance companies. In case of adding coverage for earthquake and volcanic eruption in the fire insurance, the provisions of Tariffs and Regulations on Facultative Earthquake and Volcanic Eruption Coverage will be applicable. 

The insurant/insurance holder is liable to fulfill the following in case of the risk:

1- Notifying the insurer within no later than 5 days from the date of becoming aware of the risk.

2- Taking necessary recovery and protective measures just like in the absence of insurance; and making best efforts to comply with the instructions of insurer for this purpose.

3- Allowing the insurer and persons authorized by the insurer to have access to damaged buildings and locations, to take the delivery of, seize and guard the same and attempt to reduce the damage for reasonable purposes and in suitable ways.

4- Avoiding making any change in the location or property damaged except for mandatory cases.

5- Upon demand of insurer, presenting to insurer the necessary information and documents that are useful for determining the causes of risk in detail, determining the amount of damage and evidences, and for exercising the right of recourse and that are possible to provide for the insurant, without delay.

6- Providing the insurer with a written notice indicating estimated amount of damage within a reasonable and suitable period of time.

7- Allowing the insurer and the representatives authorized by the insurer to make research and investigations on the insured locations or property and on related documents in order to determine the indemnity obligation and amount and the rights of recourse.

8- Informing the insurer if there are any other insurance contracts regarding the insured location and property. 

The insurer is obliged to complete necessary investigation, determine the amount of damage and indemnity and notify to the insurance holder within 1 month as of the date the documents regarding the amount of damage are presented to the insurer. 

There are 3 methods for calculating the insurance indemnity:

In case of absence of any provision in the policy with regards to the calculation of insurance indemnity, indemnity value (market value) of insured property at the time of risk is considered. However, the insurant and insurer may agree on indemnification over the replacement cost (new value) of policy. In this case, the policy would specify that indemnification is over the replacement cost (new value) of policy.

For the policies indemnified on the basis of market value, the value losses resulting from the share of aging, wearing, tearing, usage and other reasons are deducted in indemnification payments for the assets included in the coverage; and, specific performance and quality differences of the new ones are deducted from indemnification, if any.

For the policies indemnified on the basis of new value (replacement cost of the new including also the shipment, assembly, customs, tax expenses, dues, and fees) and for the payment of indemnification of assets included in the coverage;

- The replacement cost determined based on the rebuilding or purchase cost of asset as the subject of policy at the location and date of risk is considered, provided that the maximum rate or age specified in the policy for the share of aging, wearing, tearing, usage is not exceeded. However, the rights of insurer for discount resulting from incomplete insurance, salvage and specific technology difference are reserved.

- If the maximum rate or age specified in the policy for the share of aging, wearing and tearing (usage) is exceeded, the market value is considered as basis for the indemnification value.

Third method is the agreed value principle. The value of buildings, fixed wiring, machinery, fixtures or household property as the subject of insurance is determined during the execution of insurance or within the period of insurance by the experts selected by the insurant and insurer unanimously and if accepted by the parties, the parties do not object to this value in the calculation of indemnity in case of risk.

Value list to be determined for contracts concluded on the basis of agreed value is valid for maximum one year insurance period. Expert fees are laid on the party demanding contract on the basis of agreed value. Contract on the basis of agreed value cannot be concluded for commercial commodity. 

Compulsory Earthquake Insurance is literally an insurance system developed for residences located within the limits of municipality. The buildings defined below are secured in accordance with the Disaster Insurances law no. 6305: 

- Buildings constructed as residence on immovable property registered in title deed and subject to private ownership,

- Independent sections under Property Law no. 634,

- Independent sections included in such buildings and used for business, office and similar purposes,

- Residences built or built with loans provided by the government due to natural disasters.

Compulsory Earthquake Insurance is furthermore applicable to the following which comply with the foregoing terms and conditions:

- Buildings established with construction servitude,

- Buildings which did not have type classification in title registration yet and which are shown as “building site, etc.” in title registration,

- Cooperative houses not allocated in the title registration yet.

Material damages that may be caused directly by earthquakes and resulting fire, explosion, tsunami and landslide are covered by the Compulsory Earthquake Insurance within the limits specified in the policy. 

Compulsory Earthquake Insurance provides coverage up to a maximum total determined in parallel to the increase in construction costs every year. Reconstruction cost (excluding the value of building site) for the buildings forming large part of construction stock available is considered in the determination of maximum amount of coverage. Coverage totals (insurance cost) for those taking out the insurance is determined based on the size and construction style of residences provided that such maximum coverage total is not exceeded. If the value of residence exceeds the coverage total specified by the Turkish Natural Disasters Insurances Authority (DASK), the insurance holder may take out earthquake insurance voluntarily with the insurance companies for the exceeding value. 

Building site value of residence is not included in the insurance value. The building site share of insurance holder would remain on the “building site” even if the residence is demolished by earthquake totally; therefore, the value of building site is not considered. Reconstruction cost of building calculated based on the market value of building at the location and time of risk is considered in the calculation of insurance indemnity. 

The insurance holder’s name, address, telephone number, mobile phone number, TR Identification Number, Tax ID Number (for legal entities), full address of building to be insured, title deed information, construction year, construction style, total number of floors, condition of damage, gross area of residence (m2), way of use are required. Material losses that may arise due to false statements are under the liability of insurance holder. 

Compulsory Earthquake Insurance covers only the buildings. 

Following the earthquake, the damage should be notified to 125 Alo DASK Call Center just after becoming aware of the damage. 

In case of damage, the damage should be notified quoting the TR identification number or policy number; and current title deed particulars, full address of location of damage (for facilitating the arrival and assessment of expert) and insurance holder’s contact numbers should be notified to DASK. 

Following the finalization of indemnity total and completion of documents, the indemnity payments are made within no later than 1 month. 

The owner or holder of usufruct is obliged to take necessary measures against amending or weakening the building and each independent section in a way contrary to the project and to affect the carrier system negatively.

If it is determined that the damage was due to any amendment made in a way contrary to the project and to affect the carrier system negatively,  the owner or holder of usufruct loses his/her right to indemnity from the insurance. 

It is not possible to take out more than one Compulsory Earthquake Insurance for the same building/independent section. However, if the value of independent section or building with the Compulsory Earthquake Insurance is above the insurance value specified with the Compulsory Earthquake Insurance, the insurance companies may provide facultative earthquake coverage together with the fire insurance for the portion above that total provided that Compulsory Earthquake Insurance is available.