TRAFFIC INSURANCE
Mandatory Financial Liability (Traffic) Insurance
All motor vehicles that use highways, including rubber-tired tractors and the trailers they tow, are required to have this mandatory insurance according to Law No. 2918 on Road Traffic. This insurance covers the legal liability of the vehicle owner for bodily injury and property damage to third parties caused by the use of the vehicle.
GENERAL TERMS OF COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE (TRAFFIC INSURANCE)
Effective Date: August 15, 2003
A- INSURANCE COVERAGE
A.1- Scope of Insurance
The insurer covers the legal liability of the operator, as defined by Law No. 2918 on Road Traffic, up to the compulsory insurance limits for causing death, injury, or property damage while operating the motor vehicle described in the policy.
Damage caused by trailers or semi-trailers (including light trailers) or towed vehicles connected to the insured vehicle is covered under the towing vehicle's insurance. However, trailers used for human transportation are included in the coverage only if an additional liability insurance with special terms specified in the policy is provided.
Reasonable and necessary expenses incurred by the policyholder to prevent or reduce damage in the event of an accident are covered by the insurer.
This insurance also covers the defense of the operator (policyholder) against unjust claims.
A.2- Geographical Limits of Insurance
This insurance is valid within the borders of Turkey.
A.3- Exclusions from Coverage
The following situations are excluded from insurance coverage:
a) Damage caused by vehicles that are not in operation.
b) Claims for compensation made by the operator.
c) Claims for damage to the property of the operator’s spouse, ascendants, descendants, adopted family members, and cohabiting siblings.
d) Claims against the operator for damage to goods carried in the vehicle or trailers, excluding luggage and similar items belonging to the injured parties.
e) Claims for moral damages.
f) Claims directed at persons for whose actions the operator is held liable under the Road Traffic Law.
g) Claims for damage to the operator’s vehicle, trailers, semi-trailers, or towed vehicles.
h) Claims related to vehicles left for supervision, repair, maintenance, sales, or modifications to enterprises engaged in professional activities related to motor vehicles.
i) Damage resulting from the vehicle's participation in races organized with the permission of authorized authorities, accompanying vehicles in races, or being used in shows.
j) Claims for damage caused by stolen or hijacked vehicles for which the operator is not liable under the Road Traffic Law, including claims from individuals who knowingly boarded the stolen or hijacked vehicle, and claims from the thieves or hijackers.
k) Damage caused by the use of motorized bicycles.
l) Claims for damage resulting from the use of vehicles in terrorist acts or sabotage, as defined in the Anti-Terrorism Law No. 3713, for which the operator is not liable under the Road Traffic Law, including claims from individuals who knowingly boarded the vehicle used in terrorist acts or sabotage, and claims from individuals using the vehicle for such acts.
m) Claims for indirect damages.
A.4- Start and End of Insurance
Insurance starts and ends at 12:00 noon on the start and end dates written in the policy, respectively, unless otherwise agreed.
B- DAMAGES AND COMPENSATION
B.1- Obligations of the Policyholder in the Event of a Risk
In the event of a risk, the policyholder is obliged to:
a) Notify the insurer of any event that may result in liability under this contract within five days of becoming aware of it.
b) Take necessary rescue and protection measures as if they were uninsured and follow instructions provided by the insurer for this purpose.
c) Provide the insurer with all information and documents that can help determine the cause, conditions, and consequences of the event and damage, the liability for compensation, and the right of recourse without delay upon the insurer’s request.
d) Inform the insurer immediately if a compensation claim is made through legal or other means or if a criminal prosecution is initiated against them, and provide all related notices, summonses, and similar documents to the insurer promptly.
e) Inform the insurer if there are other insurance contracts related to the insured matter.
B.2- Payment of Compensation and Expenses
The insurer has the right to directly negotiate with third parties making compensation claims.
However, without the insurer’s written consent, the policyholder is not authorized to accept any compensation claims partially or fully or to make any compensation payments to the injured parties.
The insurer will:
a) Pay the claimed compensation and expenses within eight working days from the date the rightful owner submits the accident and damage report or expert report and necessary documents to the insurer’s headquarters or branches.
b) Pay the first aid, examination, control, and outpatient treatment expenses in hospitals, clinics, and other places, as well as other necessary expenses due to the injury, within eight working days from the date the injured parties apply with their documents, within the insurance coverage limits.
In case of damage, if the damaged part cannot be repaired or replaced with an equivalent part, it will be replaced with a new one. Even if this results in an increase in the value of the vehicle, this difference will not be deducted from the compensation amount.
In case of a lawsuit, the insurer is responsible for the pursuit and management of the case up to the limits specified in the insurance policy. The policyholder must provide the necessary power of attorney to the lawyer appointed by the insurer. The insurer is responsible for paying the litigation expenses and attorney fees. However, if the awarded compensation exceeds the insurance amount, the insurer pays these expenses proportionate to the insurance amount.
If criminal proceedings are initiated against the insured or those for whom they are responsible, the insurer may participate in the defense with the permission of the accused. In this case, the insurer pays only the expenses of the lawyer it selects.
All expenses arising from criminal prosecution and possible fines are outside the scope of insurance coverage.
B.3- Subrogation of the Insurer
The insurer legally steps into the policyholder’s position to the extent of the compensation paid.
B.4- Preservation of the Rights of the Injured Parties and the Insurer's Right of Recourse Against the Operator
Provisions in the insurance contract or relevant legal provisions that result in the elimination or reduction of compensation liability cannot be asserted against the injured party.
The insurer who makes the payment can recourse to the policyholder to the extent that it can eliminate or reduce the compensation according to the insurance contract and relevant legal provisions.
The main reasons for recourse to the policyholder include:
a) If the event requiring compensation resulted from the deliberate act or gross negligence of the operator or persons for whom they are responsible.
b) If the operator knew or could have known with due diligence that a special insurance required by the Road Traffic Law for an unauthorized race was not arranged.
c) If the event requiring compensation resulted from the operation of the vehicle by persons without the necessary driving license as required by the Road Traffic Law.
d) If the event requiring compensation occurred while the vehicle was being driven by persons under the influence of narcotics or intoxicating substances, or while under the influence of alcohol such that they lost their ability to drive safely.
e) If the event requiring compensation occurred due to the transportation of passengers in vehicles not licensed for passenger transport, or if the vehicle was carrying more passengers or cargo than permitted by the authorities, or if the vehicle was transporting explosive, flammable, and dangerous substances without a permit, resulting in an explosion, ignition, or combustion.
f) If the policyholder's failure to fulfill the obligations specified in Article B.1 results in an increase in the amount of damage and loss.
g) If the event requiring compensation occurred as a result of the vehicle being stolen or hijacked, and the operator or persons for whom they are responsible are found to be at fault in the theft or hijacking incident.
C- MISCELLANEOUS PROVISIONS
C.1- Payment of Insurance Fee
The insurance fee consists of the premium, the Road Traffic Guarantee Insurance Account contribution, and any existing and future taxes, duties, and fees related to the insurance contract, its value, or its premium.
The total insurance fee is payable in full upon the signing of the contract in exchange for the delivery of the policy.
C.2- Policyholder's Obligation to Declare at the Time of Contract
The insurer accepts this insurance based on the policyholder’s declaration regarding the true nature of the risk as stated in the policy and its annexes.
If the policyholder's declaration is false or incomplete and requires the insurer to set stricter terms for the contract, the insurer shall notify the policyholder within eight days from the moment it becomes aware of the situation, demanding the payment of the premium difference. If the policyholder does not pay or declines to pay the demanded premium difference within eight days following the notification, the contract will be terminated.
In the event of termination, the premium for the elapsed period until the effective date of termination will be calculated on a short-term basis, and the excess will be refunded.
If the premium difference is not demanded within the prescribed period, the right to terminate the contract will be forfeited.
If the false declaration is discovered after the damage-causing event, the insurer may recourse to the policyholder for the paid or payable compensation:
a) For the entire amount if the false declaration was made intentionally,
b) For the amount excluding the portion proportionate to the difference between the paid premium and the premium that should have been paid if it was unintentional.
C.3- Policyholder's Obligation to Notify During the Insurance Period and Its Consequences
The policyholder is obliged to notify the insurer within eight days of becoming aware of any changes that may increase the risk after the contract is signed. The insurer shall notify the policyholder within eight days from the moment it becomes aware of the situation, demanding the payment of the premium difference. If the policyholder does not pay or declines to pay the demanded premium difference within eight days following the notification, the contract will be terminated.
In the event of termination, the premium for the elapsed period until the effective date of termination will be calculated on a short-term basis, and the excess will be refunded.
If the premium difference is not demanded within the prescribed period, the right to terminate the contract will be forfeited. For compensation paid or payable for events occurring before the notification obligation is fulfilled, the provisions of Article C.2 regarding the insurer's right of recourse (a) and (b) will apply, depending on whether the failure to notify was intentional.
If the changes during the insurance period reduce the risk and it is understood that a lower premium should be charged, the premium difference calculated on a daily basis for the period from the date of the change to the end of the contract will be refunded to the policyholder.
C.4- Change of Operator
The insurance contract follows the vehicle operator who is a party to the contract. The operator must inform the insurer of the information related to the new vehicle they own. If there is a change in the vehicle group, the provisions of Article C.3 will apply by analogy.
However, if the operator changes during the contract period, the insurance contract will also be valid for the new operator for ten days from the date of the change without any action or premium payment.
In the case of new insurance due to a vehicle change, the premium earned by the insurer until the date of the operator's change will be determined on a daily basis, and the excess will be refunded to the policyholder.
C.5- Notifications and Announcements
Notifications and announcements from the policyholder must be made to the insurance company's headquarters or the agent who mediated the insurance contract via a notary or registered mail.
Notifications and announcements from the insurance company must be made to the address shown in the policy, and if these addresses have changed, to the last address reported to the insurance company's headquarters or the agent who mediated the insurance contract, in the same manner.
Notifications and announcements delivered to the parties by hand against signature or via telegram will be considered as registered mail.
C.6- Confidentiality
The insurer and those acting on behalf of the insurer are responsible for any damages resulting from not keeping the commercial and professional secrets of the policyholder.
C.7- Competent Court
Legal liability claims arising from motor vehicle accidents can be filed in the courts of the place where the insurer’s headquarters or branch, or the agent who made the insurance contract, is located, or in the court of the place where the accident occurred.
C.8- Statute of Limitations
Claims for compensation for damages arising from motor vehicle accidents are subject to a statute of limitations of two years from the date the injured party learns of the damage and the liable party, and in any case, ten years from the date of the accident.
If the claim arises from an act requiring punishment, and the criminal code prescribes a longer statute of limitations for that act, this period will also apply to compensation claims.
If the statute of limitations is interrupted against the liable party, it will also be interrupted against the insurer. An interruption of the statute of limitations for the insurer will also be considered an interruption for the liable party.
The right of recourse of the liable parties against each other for motor vehicle accidents will be subject to a statute of limitations of two years from the day they fully fulfill their own obligations and learn of the party to be recourse.
General provisions apply to other matters.
C.9- Special Conditions
Special conditions may be added provided they do not contradict these general conditions and any related clauses and are not disadvantageous to the insured.
C.10- Effective Date
Article 19- These general conditions will be effective as of August 15, 2003.
Last Amendment Date: July 1, 2006