Change in mandatory traffic insurance

In the second paragraph of provisional article 11 of the Regulation on Tariff Application Principles for Mandatory Motor Vehicle Liability Insurance, published in the Official Gazette numbered 26582, the phrase ", as 5% monthly for the months of January, February, March, and April 2024 (based on the maximum premium amounts of the previous month each month), and as of May 2024, based on the damage cost index, over the maximum premium amounts of the previous month each month" has been added after the phrase "as 2% monthly (based on the maximum premium amounts of the previous month) starting from May 2023", the following sentence has been added after the second sentence of the same paragraph, and the last sentence of the same paragraph has been amended as follows.

“In the calculation of the damage cost index; the minimum wage increase rate announced by the Ministry of Labor and Social Security with a 45% weight, the expenditure index announced by the Turkish Statistical Institute (TÜİK) - price increase rate of spare parts and accessories for personal transport vehicles with a 30% weight, the expenditure index announced by TÜİK - price increase rate of motor vehicles with a 15% weight, and the expenditure index announced by TÜİK with a 10% weight - price increase rate of maintenance and repair of personal transport vehicles are taken into account.”

COST INDEX DETERMINED

“The Board is authorized to determine monitoring and correction factors on the damage cost index, and to reduce the increase rate determined for January, February, March, and April 2024, as well as the rate to be determined by the index starting from May 2024, down to zero or increase it up to two times, taking into account damage frequency, damage costs, and other factors.”

News Source: 12punto