Attention vehicle owners: Major changes coming to traffic insurance

Traffic insurance companies closed the 2023 fiscal year with a loss of 13 billion liras. This year, the loss is projected to exceed 20 billion liras.

For a long time, insurance companies have been complaining about the insufficiency of traffic insurance premiums set by the public sector.

Industry representatives were calling for tariffs to be liberalized.

According to a report in the Hürriyet newspaper, a formula has been found to resolve the problems in traffic insurance.

Accordingly, the public will establish a pool for bodily injury claims in traffic insurance. Compensation for death and disability will be paid from the pool established by the public.

Insurance companies will transfer a certain percentage of the premium determined for bodily injury to the pool to be established by the public for every policy they sell.

This rate is also expected to be between 50 percent and 80 percent. The rates will also be determined according to the financial structure of the insurance companies.

With the new practice, the liability for bodily injury compensation will be removed for insurance companies. Companies will only cover material damages.

The implementation is expected to go into effect in mid-2025.

Currently, bodily damages such as death and disability are covered by insurance companies.

Of the 4.5 billion TL in bodily injury claims that companies will pay in the first half of 2024, 3.5 billion TL is currently subject to litigation... There are also complaints regarding the long duration of lawsuits between insurance companies and citizens concerning bodily injury claims.

It is stated that this situation multiplies costs.