TARIFF- INSTRUCTIONS

GREENCARD INSURANCE TARIFF AND INSTRUCTIONS EFFECTIVE FROM JANUARY 1, 2014

 

With the insurance contract for the Green Card Certificate, the insurer covers the policyholder against liabilities arising from the operation of the motor vehicle in foreign countries within the scope of the Green Card System, of which the Turkish Motor Insurers’ Bureau (TMTB) is a member, contrary to the exception stated in the second article of the General Conditions of Compulsory Motor Third-Party Liability Insurance, within the compulsory liability insurance limits of the country where the incident occurred.

The following special conditions are primarily applied in Green Card applications and disputes between the policyholder and the insurer.

I-ANNUAL PREMIUM TARIFF:                                                                                 

Vehicle Group Code

Vehicle Category Code

 

Vehicle Group *

PREMIUMS (EURO)

Private

Corporate

01

A

 Car

300

300

02

A1

 Taxi

500

500

03

M

 Minibus (9-15 seats including the driver)

550

550

04

M1

 Bus (16-25 seats including the driver) 

700

700

05

E

 Bus (26+ seats including the driver)

850

850

06

C1

 Van

600

600

07

C

 Truck

1.100

1.100

08

H

 Construction machine

300

300

09

H1

 Tractor

50

50

10

F

 Trailer (**) 

100

100

11

B

 Motorcycles and Cargo Motorcycles

200

200

12

C

 Tanker

1.100

1.100

13

C

 Tow truck

1.100

1.100

14

G

 Special purpose vehicle

700

700

15

K

 Caravan

700

700

20

G1

 Other Vehicles

800

800

 

(* ) The definitions of vehicle groups, except Trailer (10) and Caravan (15), are the same as the definitions in the Mandatory Liability Insurance Tariff and Instructions.

(** ) The Trailer vehicle group mentioned in this Tariff and Instructions refers to trailers not used for transporting people. Trailers used for transporting people will be considered under the Other Vehicles category.

II - DISCOUNTS / SURCHARGES

1. NO-CLAIM DISCOUNT / CLAIM SURCHARGE

Premium discounts due to no-claims and premium surcharges due to claims are applied according to the step basis in this section.

 

Step No

No-Claims Discount (%)

Premium Surcharge (%)

7

20

-

6

15

-

5

10

-

4

-

-

3

-

20

2

-

40

1

-

60

The fourth tier, which does not include any premium increases or reductions, is applied for those who will be on the road for the first time as an operator.

If no claims are made during the completed annual insurance period, the premium discount rate to be applied to the renewed insurance contract is determined from one tier above the expired contract.

On the other hand, for each separate claim made during the term of the expired insurance contract, the premium increase to be applied during the renewal is determined from one tier below the expired contract.

If a claim related to the expired policy period is made during the period when the policy is in effect, after the determination of the premium tier, the active policy is adjusted without premium according to the situation and this is taken into account for the renewal policy to be processed from one tier below.

The premium increase or decrease due to premium discount or claim payment follows the operator.

If an operator has more than one motor vehicle or if more than one motor vehicle is operated under the name or business name of an enterprise or by a ticket issued by this enterprise, a separate insurance contract is made for each vehicle, and the applicable premium tier is determined individually for each vehicle.

For the purpose of determining the premium tier, the insured is obliged to present the vehicle registration copy for vehicles registered in their name, the notary sales certificate or invoice for vehicles sold but not yet registered in their name, or the necessary document requested by the insurance company.

If the insurer cannot check the last policy information of the insured in the TRAMER database, the insured presents a copy of the last policy to the company where they will get insurance.

Based on the documents presented by the insured and the damage status certificate obtained from TRAMER, the insurance company determines the discount and increase rates to be applied to the insurance contract.

If the document showing the vehicle sales transaction or the vehicle registration copy and, in necessary cases, the last policy copy is not presented for the purpose of determining the premium tier, the premium tier is calculated according to the premium rate in the highest tier with the highest premium increase.

Insurance companies are required to write the date and number of the damage status certificate on the insurance contract if they apply a premium increase due to a no-claim discount or claim payment and to keep the damage status certificates as documents or electronically for at least three years.

Discount and increase rates are not applied to the insurance premium cumulatively but successively.

No-claim discount is not applied if short-term insurance and a new annual insurance contract are arranged following a short-term insurance contract. However, a premium increase due to damage is applied to these contracts.

III. SPECIAL DISCOUNT/INCREASE FOR FLEETS

Individuals or organizations with five or more vehicles under the same tax number are considered a Fleet and the following tariff applications are made for the Green Card Insurances to be issued.

The specified tariff application is determined by evaluating the operator's status as an insured/insurance holder together, based on the Damage/Premium Ratio of the operator's last three years as recorded by the Bureau on an "underwriting year" basis.

Accordingly, the Damage/Premium Ratio for each period of the last three years, according to the mentioned method, is applied as follows:

-     For operators with a Damage/Premium Ratio between 0% and 50.00%: 20% discount


-     For operators with a Damage/Premium Ratio between 50.01% and 75.00%: 10% discount


-     For operators with a Damage/Premium Ratio of 80% and above: 10% increase

 

3. COMBINATION OF NO-CLAIM DISCOUNT / CLAIM INCREASE AND SPECIAL FLEET DISCOUNT/INCREASE

If a vehicle qualifies for both a No-Claim Discount/Claim Increase and a Special Fleet Discount/Increase, the insurance premium is calculated by applying all entitled discounts or increases on top of each other.

4. The short-term premium tariff specified in this tariff can be applied to vehicles subject to special fleet discount/increase

III. SHORT TERM PREMUM TARIFF

In short-term insurance, the premium amount is determined according to the rates below, provided it is not less than 20% of the annual premium calculated from the fourth tier:

- For insurance up to 15 days: 20% of the annual premium
- For insurance up to 1 month: 25% of the annual premium
- For insurance up to 2 months: 35% of the annual premium
- For insurance up to 3 months: 45% of the annual premium
- For insurance up to 4 months: 55% of the annual premium
- For insurance up to 5 months: 65% of the annual premium
- For insurance up to 6 months: 75% of the annual premium
- For insurance exceeding 6 months: the full annual premium is charged

IV. INSTRUCTIONS

1) Category of the Vehicle to be Insured as Registered in the License:

   The codes specified in the vehicle category code section of the above tariff will be written on the Green Card Certificates, and the codes in the vehicle group code section will be used for the transfer of data to the Tramer system.

2) A zero will be placed before single-digit days and months in the start and end date fields of the Green Card (e.g., 01.01.2013 instead of 1.1.2013).

3) The issuance date should be taken as the start date and the expiry date of the original Green Card should be taken as the end date.

   In cases where the insured cannot return the original Green Card due to loss, theft, or other compulsory reasons, the insured must present a report detailing the lost or stolen Green Card to the insurer, which is kept by the official authorities.

4) Green Card originals that are canceled or voided by the insurer before being given to the insured must be kept by the insurer. However, if the canceled or voided Green Card certificate is requested by TMTB, the relevant insurance company must promptly deliver these records to the Bureau.

5) Green Cards cannot be issued for vehicles with non-Turkish (foreign) license plates.

6) When issuing Green Card riders and the associated Green Card Certificates, the name of the vehicle's registered owner must be included under the insured field, followed by the name and address of the operator. Additionally, a notarized document proving the operator’s status must be included with the rider and kept by the relevant insurance company. The start date of Green Cards issued in the operator's name can never be before the start date of the rental agreement (a notarized rental agreement of at least one year is required to consider the operator's status).

7) Green Cards cannot be transferred to another vehicle or person under any circumstances, including cases of traffic bans and notary sales.

V. CANCELLATION PROCEDURES

1)  The insurance contract terminates on the date of the notary sale certificate. The insurance holder must inform the insurer within ten days following the sale. Upon receiving the sale certificate, the insurer terminates the contract from the notary sale date and refunds the unused portion of the insurance premium on a daily basis to the insurance holder.

   The insurance contract is also terminated if the insured vehicle is withdrawn from traffic (license plate cancellation) from the date of the official transaction, following the rules mentioned above.

   If the insured/operator/insurance holder changes, the existing insurance contract is absolutely terminated and cannot be continued under the new operator/insured's name.

   In all the transactions mentioned above, the original Green Card Certificate must be taken from the insurance holder and kept by the insurer. If TMTB requests the original certificate, the relevant certificate must be immediately delivered to TMTB.

   For cases other than sale, withdrawal, and change of operator, the premium refund is calculated based on the short-term premium tariff from the date the Green Card is returned to the insurer.

2) Short-term Green Cards and Green Cards exceeding six months from the issuance date cannot be canceled for premium refunds, except for notary sales and traffic de-registration.

   For the cancellation of Green Card Certificates, the insurer must take back all original Green Card Certificates related to the Green Card policy and riders from the insured. If the insured cannot return the original Green Card due to loss or theft, the insurer must be provided with a report detailing the lost or stolen Green Card by the official authorities.

3) Termination of the insurance certificate for a towing vehicle does not require termination of the insurance for the trailers attached to it.

4) Insurance companies are required to issue Green Card insurance policies online through Tramer and to record their Green Card insurance data in the TRAMER system in real-time.

5) If a TMTB member authorized to issue Green Card insurance certificates cancels a Green Card insurance certificate in violation of the rules set forth in this Tariff and Instructions and/or relevant legislation, any compensation claims arising from that Green Card insurance certificate will be excluded from the Pool retrocession account and must be covered directly by the member who performed the non-compliant cancellation.

VI. INSURANCE PREMIUM

1) Collection of Green Card Insurance Premiums:

   Green Card insurance premiums are collected in advance. However, TMTB member insurance companies may offer installment payments for Green Card insurance premiums, provided they fulfill their obligations and do not violate the principles set out in the Green Card Reinsurance Pool Establishment and Working Principles.

2) If the insurance premium is paid in installments, the Green Card insurance certificate cannot be canceled due to non-payment of an installment.

VII. FINAL PROVISIONS

1) For matters not covered here, the provisions of the Highway Traffic Law and the General Conditions of Compulsory Liability Insurance for Motor Vehicles apply.

2) The Turkish Motor Insurers' Bureau (TMTB) is authorized to interpret the Green Card Insurance Tariff and Instructions.

VIII. IMPLEMENTATION

This Tariff and Instructions came into effect on January 1, 2014.