A new era begins in mandatory traffic insurance: Effective December 5

Upon an objection filed by the Adana 4th Consumer Court, the Constitutional Court (AYM) ruled that the provisions of the Highway Traffic Law stating that "the insurer may terminate the insurance contract within 15 days from the date of notification of the situation" and that "the insurance remains valid for 15 days after the termination date" were unconstitutional and annulled them.

DECISION PUBLISHED IN THE OFFICIAL GAZETTE

While the decision in question was published in the Official Gazette dated March 5, 2024, it was decided that the annulment provisions would enter into force 9 months later, on December 5.

In its reasoned decision, the Constitutional Court pointed out the unfairness of having an accident involving a vehicle that has been sold and whose operation has been transferred to another person recorded in the previous owner's damage history due to the 15-day protection period, which leads to recourse against the former vehicle and policy owner, and also requires the former vehicle owner to pay additional premiums.

SERIOUS GRIEVANCES WERE BEING EXPERIENCED

In practices prior to the aforementioned decision, notaries performed transactions by checking for a valid policy holder, regardless of who owned the vehicle. This situation caused thousands of vehicles to travel in traffic without insurance for 15 days after purchase because the new owner was not the policyholder, and accidents that occurred led to serious grievances.

With the Constitutional Court's annulment decision coming into effect on December 5, it will prevent those who purchase vehicles from entering traffic without an insurance policy. It is anticipated that the new practice will not only reduce the rate of uninsurance but also make a positive contribution to the insurance sector regarding the rights and obligations of the former vehicle owner.

NEW PREMIUM ENTRIES ARE ANTICIPATED

According to information received from the Insurance Association of Turkey (TSB), it is expected that the General Directorate of Security of the Ministry of Interior will make a regulation to fill the gap that will arise from the Constitutional Court's annulment decision, which will come into effect on December 5. With this regulation, it is anticipated that the rate of uninsurance will decrease and there will be new premium entries for the sector.

On the other hand, agents will not have any additional transaction obligations other than the cancellation of the old policy following the sale of the vehicle. Citizens will also be able to safely enter traffic after obtaining their vehicle registration documents once they have taken out their policies. In case of deciding against obtaining the vehicle registration document, the policy taken out can be cancelled within a few days.