Minister Şimşek announces it will be implemented shortly

Şimşek made new statements regarding the Mandatory Disaster Insurance (ZAS). The insurance is expected to be implemented by the end of June.

Regarding the latest regulations, Şimşek stated, "Buildings are covered for earthquake damage, while both buildings and movable property are covered for other disasters."

Reminding that mandatory earthquake insurance was introduced by a decree-law following the 7.4 magnitude Gölcük Earthquake on August 17, 1999, Şimşek said that mandatory earthquake insurance was established to bring residential homes under insurance coverage, and the Turkish Catastrophe Insurance Pool (DASK) was created.

PROVIDES COVERAGE FOR EARTHQUAKE DISASTERS

Pointing out that this insurance model reached its final form with the Disaster Insurance Law in 2012, Şimşek spoke as follows:

"While mandatory earthquake insurance has provided coverage for residential homes against earthquake disasters since its inception, 35 billion lira in damage payments were made for approximately 500 thousand damaged homes that had mandatory earthquake insurance within the scope of the earthquakes that occurred on February 6, 2023.

As of June 1, 2024, DASK provides coverage for earthquake disasters under 11.3 million policies."

MOVABLE PROPERTY INSIDE HOMES WILL ALSO BE ADDED

Furthermore, noting that the increase in the number of natural disasters has increased damages in Turkey as well as across the world, Şimşek said, "Additionally, while destructive damage to buildings is encountered in earthquake disasters, in other natural disasters, due to their nature, damage occurs more to movable property inside the home rather than the home itself.

This situation brought to the agenda the necessity of making insurance coverage mandatory for other natural disasters in addition to earthquakes, and adding movable property inside the home to the scope of coverage in addition to the home itself."

WILL BE COVERED BY INSURANCE

Stating that currently, material damages caused to residential homes by earthquakes and only the fire, explosion, tsunami, or landslide resulting from an earthquake are covered by mandatory earthquake insurance, Şimşek noted the following:

"With the ZAS to be implemented shortly, it is planned to additionally include coverage for floods, landslides, storms, hail, avalanches, and forest fires. Buildings are covered for earthquake damage, while both buildings and movable property are covered for other disasters.

Furthermore, while mandatory earthquake insurance does not currently provide coverage for rural areas, rural areas have also been included in the scope due to the nature of the natural disasters added to the coverage with mandatory disaster insurance. Our goal is to implement ZAS by the end of June."

News Source: AA