Reform targeting motor third party liability insurance
Turkey is embarking on an overhaul of the motor third party liability insurance. This initiative started with the objective of reducing the losses sustained by motor insurers for ten years while tariffs are declining.
The amendments of the Insurance Code have been approved by the government. The new law clearly defines the scope of the coverage which is required to be in compliance with market conditions and actuarial principles. Compensations will be standardized in order to enable insurers to better appraise their costs. Computing the compensations received by the victims of car accidents shall take into account the age, the job title and persons covered by the policy.
The sums allocated by judges are no longer dependent on adjustors’ and witnesses’ estimates. In 2015, insurers sustained 823 million USD of losses in motor third party liability.
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