A COMPARISON BETWEEN THE TURKISH AND EU MTPL INSURANCE

EXPERIENCES OF THE TURKISH MOTOR INSURERS’ BUREAU

MINIMUM LIMITS OF INSURANCE

The limits in Turkey for 2014 are as follows:

Property damage: EUR 9.000 (26.800 TL.) per vehicle and EUR 18.000(53.600 TL.) per accident.

Bodily injury:         EUR 90.000 (268.000 TL) per victim and maximum EUR 2.770.000 (8.308.000 TL.) per accident.

MINIMUM LIMITS OF INSURANCE

Starting from June 2012 insurance limits in EEA countries will be:

Property damage: EUR. 1.120.000 per claim,whatever the number of victims.

Bodily injury: EUR. 1.120.000 per victim or EUR. 5.600.000 per claim,whatever the number of victims.

Since April 2008 a constat amiable has been used in Turkey regarding accidents which involve only material damage. For accidents involving personal injuries and death a police report has to be issued.

The situation is similar in most european countries.

POLICE REPORT VERSUS CONSTAT AMIABLE

In some countries damaged party can apply and get compensated by his/her own MTPL insurer (example: France, Italy).

There is an agreement beween insurers regarding recourse.

It is not applied in Turkey.

DIRECT COMPENSATION SYSTEM

First Party Cover:

MTPL insurer compensates the injured driver even if he/she is at fault (Sweden). It is not applied in Turkey.

DIRECT COMPENSATION SYSTEM

In Turkey, trailers which are not used to carry passengers are not required to be covered by a seperate MTPL policy.

Such trailers are covered by the MTPL policy of the truck they are attached to.

If the truck can not be identified then there is nobody to compensate the victim because the Guarantee Fund does not cover property damages.

TRUCK-TRAILER SITUATION

The situation in the EU varies from country to country.

In most countries trailers are covered by the MTPL insurer of the truck they are atached to.

If the truck can not be identified usually the Guarantee Fund compensates the victim.

In others the victim is entitled to apply either to the MTPL insurer of the truck or the trailer.

TRUCK-TRAILER SITUATION

In Germany for instance according to a recent decision of the Supreme Court compensation is divided between MTPL insurer of the truck and trailer as 50/50 %.

In Spain the liability is 70/30 % for the truck and trailer respectively.

TRUCK-TRAILER SITUATION

Regarding total loss there is no specific criterion in Turkey about what constitues a total loss.

Total Loss = damage beyond repair.

Total Loss = repair costs > the replacement value of the vehicle (second-hand value of the vehicle minus salvage)

TOTAL LOSS, CAR HIRE COSTS,LOSS OF USE

However,some countries have specified a certain percentage for a total loss.

If the repair costs exceed a certain percentage of the replacement value of the vehicle then the vehicle is considered a total loss. For example 130% in Germany, 80% in Bulgaria.

TOTAL LOSS, CAR HIRE COSTS, LOSS OF USE

Car hire costs and loss of use are not covered by the turkish MTPL insurance.

In many EU countries the victim can choose to apply either for car hire or loss of use.

Some countries have restricted car hire costs and loss of use to cases only where the vehicle is required for business purposes.

TOTAL LOSS, CAR HIRE COSTS, LOSS OF USE

The time period to settle an MTPL claim in Turkey is 8 working days on condition that all necessary documents are complete.

According to EU Motor Insurance Directives the MTPL insurer has to make a reasoned offer to the claimant within a period of 3 months maximum from the date of the claim notification.

TIME TO MAKE AN OFFER TO THE CLAIMANT AND SETTLE A CLAIM

Cost of medical treatment

Starting from 2011 MTPL insurers in Turkey are no longer responsible for compensating victims in respect of medical treatment costs.Instead,the insurers transfer approximately 15% of their MTPL insurance premium to the Social Security Institution.All hospitals are required to provide medical treatment to a victim of a road accident free of charge.

PERSONAL INJURIES

In some EU countries there is a similar system.

In some countries, there is no transfer of a certain percentage of premiums in advance from the MTPL insurer to the Social Security Institution and this institution is entitled to recourse. 

PERSONAL INJURIES

Cost of medical treatment

Loss of earnings: In all countries including Turkey loss of earnings due to inability to work are covered. Funeral expenses: In all countries including Turkey such expenses are covered. 

PERSONAL INJURIES

Compensation for pain and suffering (moral damage)

This kind of compensation is not covered by the compulsory MTPL insurance in Turkey.

The victim has the right to request moral damage compensation from the liable driver/operator of the vehicle but can not claim it from the MTPL insurer.

PERSONAL INJURIES

Compensation for pain and suffering (moral damage)

In the EU countries (except Malta) compensation for pain and suffering is paid.The level of compensation varies from country to country.Some countries use table systems: Spain, Italy, France.No table system exists in others: Germany, The Netherlands, Austria, Portugal,UK.

PERSONAL INJURIES

GUARANTEE FUNDS

The Turkish Guaantee Fund does not cover property damages except when the insurer has gone bankrupt.

Only bodily injury such as treatment expenses, disability or death are covered.

It is in contrast with the EU Guarantee Funds which cover both property damage and bodily injury.

LEGAL COSTS AND COURT FEES

In Turkey out-of-court lawyer’s fees are not paid by MTPL insurers.

In case of a court case, the MTPL insurer of the losing party has to pay court fees and a certain amount of the opposite party’s lawyer fees.

LEGAL COSTS AND COURT FEES

The situation in the EU varies from country to country.

In most of them court fees are paid by the MTPL insurer of the losing party and regarding out-of-court lawyer’s fees the situation again depends on the country.

LIABILITY LAW

In Turkey the damaged party can request compensation from both the driver, operator and MTPL insurer.

Strict liability is applied in respect of the operator of a vehicle.

However, in order for the operator and the MTPL insurer to be liable the driver has to be at fault (he has to break a traffic rule). Therefore, in respect of the driver fault based liability is applied in Turkey.

LIABILITY LAW

Some EU countries have adopted a strict liability system.

Many EU countries have adopted a strict liability system alongside a fault system.

As a result, many Member States in fact combine both systems.(Fault liability for property damage and Strict Liability for personal injuries).

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