An accident, negligent medical treatment or an underpayment by an insurance company may cause people to suffer both physically and financially. The correct calculation of the right to compensation and not missing time limits are decisive. Choosing the correct route of application is also important: the insurance company, the Insurance Arbitration Commission, mediation or the court.

Our office in Istanbul provides legal advice and litigation follow-up in traffic accident, insurance and compensation disputes.

What work do we handle in this area?

Pecuniary and non-pecuniary compensation arising from traffic accidents
Compensation for loss of support in fatal accidents
Compensation for temporary and permanent incapacity for work (disability) in injury accidents
Claims for vehicle depreciation, repair costs, replacement vehicle and loss of earnings
Total loss vehicle, salvage value and market value disputes
Underpayment or rejection under motor own-damage insurance and compulsory traffic insurance
Applications to and objections before the Insurance Arbitration Commission
Compensation due to workplace accidents and occupational diseases
Compensation due to medical negligence (malpractice)
Recourse claims by insurance companies

Who is liable in a traffic accident?

If the operator of the motor vehicle and the owner of the undertaking to which the vehicle is attached cause the death or injury of a person, or damage to property, during the operation of the vehicle, they are jointly and severally liable for this.

The guarantee for this liability is compulsory motor third-party liability (traffic) insurance:

The insurance company is liable within the limits stated in the policy.
For any amount exceeding the limit, the operator and the driver remain personally liable.

The degree of fault directly affects the amount of compensation. The accident report and expert report are the main documents in determining fault. The report may be challenged; fault may be re-determined through an examination by the Council of Forensic Medicine (Adli Tıp Kurumu) or by an expert.

What compensation can be claimed?

1. Pecuniary losses (vehicle)

Repair costs; if the vehicle is a total loss, its market value
Depreciation in value
Replacement vehicle costs or loss of earnings during the period when the vehicle cannot be used (especially for commercial vehicles)

2. Bodily losses

Medical expenses
Loss of earnings
Losses arising from a reduction or loss of working capacity (temporary and permanent incapacity for work)
Impairment of economic future

3. Compensation for loss of support
In the event of death, persons deprived of the deceased’s support (spouse, children and, in some cases, parents) may claim compensation for this loss. The calculation is made by an actuarial expert.

4. Non-pecuniary damages
In the event of death or serious bodily harm, the injured person and their relatives may be awarded a sum of money in compensation for their non-pecuniary loss.

Non-pecuniary damages are outside the cover of compulsory traffic insurance.
For this reason, they are claimed against the operator and the driver.

Application to the insurance company first

For claims falling within the scope of compulsory traffic insurance, a written application to the insurance company must be made before filing a lawsuit or going to arbitration.

If no payment is made within a certain period after the application, or if an underpayment is made, it is possible to proceed to litigation or arbitration.
The following documents should be attached to the application:
accident report or statement records
vehicle registration and driving licence
damage photographs and expert assessment report
(for bodily harm) medical reports, discharge summary, disability report
(in case of death) death certificate and certificate of inheritance
bank account details
Before signing a release or waiver letter that may be interpreted as meaning that you accepted the insurance company’s underpayment, it is important to have the text reviewed.

Insurance Arbitration Commission or court?

There are two routes in disputes with the insurance company:

Insurance Arbitration Commission:

An application may be made if the dispute continues despite an application having been made to the insurance company and an adverse or incomplete response having been received.
The process is generally faster than court proceedings.
The finality of decisions and the methods of objection vary according to monetary thresholds depending on the amount in dispute. These thresholds are updated every year.

Court:

A lawsuit is filed before the Commercial Court of First Instance or the Civil Court of First Instance. Which court has jurisdiction is determined according to the parties to the dispute and its nature.
Whether applying for mediation before filing suit is a procedural requirement depends on the type of dispute.
Claims outside insurance cover, such as non-pecuniary damages against the operator and the driver, are brought before the court.

Which route is appropriate should be assessed according to the type of claim, the amount and the opposing party. It is not possible to pursue both routes at the same time for the same dispute.

Vehicle depreciation

Even if damage is repaired, the market value of a vehicle involved in an accident may decrease. This difference may be claimed as depreciation in value.

By its decision dated 17.07.2020 (E.2019/40, K.2020/40), the Constitutional Court annulled the statutory provisions forming the basis of the calculation rules in the general terms of compulsory traffic insurance. The practice continues to change with subsequent legislative amendments and new Constitutional Court decisions.
For this reason, in calculating depreciation in value, the vehicle’s age, mileage, the nature of the damage and market conditions are assessed by an expert.
For details: Vehicle Depreciation

Total loss vehicle and salvage

When the repair cost approaches the value of the vehicle, the insurance company may treat the vehicle as a “total loss” (pert).

In this case, the market value on the date of the accident is taken as the basis.
The value of the wreck (salvage) is deducted from the payment, or the wreck is left to the insurance company.
An objection may be made where the market value has been set too low, or where the vehicle has been treated as a total loss when it should not have been.

Motor own-damage insurance disputes

Motor own-damage insurance is voluntary insurance. The scope and exclusions are determined according to the policy and the general terms of motor own-damage insurance.

Common reasons for rejection and underpayment:

an allegation of driving under the influence of alcohol or without a licence
an allegation that the damage falls outside the policy cover (such as flood, earthquake or leaving the key behind)
an allegation that the notification period was missed
repair carried out at a non-contracted service centre
inadequate expert assessment

Each reason for rejection should be examined separately together with the policy wording. Some reasons fall under the insurer’s burden of proof.

Workplace accidents and occupational diseases

In the event of a workplace accident or occupational disease, social insurance benefits are provided to the worker or the worker’s family by the Social Security Institution (SGK). For loss not covered by SGK, a claim for pecuniary and non-pecuniary compensation may be brought against the employer.

The employer has an obligation to take occupational health and safety measures.
Degrees of fault are determined by an expert.
Compensation claims arising from workplace accidents and occupational diseases are regulated as an exception to mandatory mediation before the labour courts.
For details: Labour Law

Compensation for medical negligence (malpractice)

If loss arises as a result of the doctor or healthcare institution acting in breach of obligations concerning diagnosis, treatment, surgery or the duty to inform, compensation may be claimed.

Private hospital and private practice: The relationship between the patient and the healthcare institution is generally regarded as a mandate relationship; the doctor and the hospital are under a duty of care. Since the patient is considered a consumer, in most cases the lawsuit is filed before the consumer court.

State and university hospitals: Liability is based on the administration’s service fault.

An application is first made to the administration, and then a full remedy action is filed before the administrative court.
The application and litigation time limits are short and should not be missed.

In medical negligence cases, a report from the Council of Forensic Medicine or an expert panel is decisive. It is important to request medical records (discharge summaries, operation notes, consent forms) at an early stage.

Limitation period

For compensation claims arising from traffic accidents:

two years starting from the date on which the injured party learned of the loss and the person liable for compensation,
in any event ten years starting from the date of the accident
However, if the compensation arises from an act requiring a penalty for which criminal laws prescribe a longer limitation period, that period applies.

The time limits are different for motor own-damage insurance, workplace accident and medical negligence claims. They should be assessed separately according to the type of dispute.

Interest

The starting date and type of interest to accrue on compensation (statutory interest or advance interest) vary according to the nature of the claim. This issue should be assessed separately in each file, taking into account current legislation and case law.

How does the process work?

Initial assessment: The accident or incident, the fault position, the insurance policies and the type of loss are examined.
Collection of documents and evidence:
– reports
– expert assessment and medical reports
– photographs, camera recordings, witness information
Application to the insurance company: A written application is made and the time limit is monitored.
Choice of route: Arbitration, mediation or lawsuit.
Expert process: Fault, depreciation, actuarial and disability reports; objections.
Recovery: Follow-up of payment after a decision or settlement; enforcement proceedings if necessary.

Common mistakes

Leaving the accident scene without drawing up a report, or after signing an incomplete report
Accepting the payment proposed by the insurance company without understanding its scope, by signing a document in the nature of a release
Not keeping medical reports and treatment documents
Missing limitation periods and application deadlines
Thinking that non-pecuniary damages can be claimed from the insurance company

Frequently asked questions

Can a lawsuit be filed without applying to the insurance company first?
As a rule, for claims falling within the scope of compulsory traffic insurance, a written application must first be made to the insurance company. Other situations are assessed according to the type of dispute.

How is depreciation in value calculated?
It is calculated by an expert taking into account the vehicle’s age, mileage, previous damage records, the nature of the damage and market conditions.

Arbitration or court?
For claims against the insurance company, the Insurance Arbitration Commission is generally faster. Claims such as non-pecuniary damages against the operator and the driver are brought before the court. Which route is appropriate varies according to the specific case.

Who can claim compensation for loss of support?
Persons who actually benefited, or would have benefited in the future, from the deceased person’s support, for example the spouse, children and, in some cases, parents.

What should be done if motor own-damage insurance underpays?
First, the policy, the general terms and the expert report are examined. An objection is made to the insurance company. If no result is obtained, an application may be made to the Insurance Arbitration Commission or the court.

What is the limitation period in a traffic accident?
As a rule, it is two years from learning of the loss and the liable person, and in any event ten years from the accident. If the incident constitutes a criminal offence and the criminal limitation period is longer, that period applies.

Depreciation in Value and Compensation for Loss of Support After a Traffic Accident
Application to the Insurance Arbitration Commission for Injury or Death Compensation
Temporary Incapacity for Work Compensation After a Traffic Accident
Total Loss Vehicle and Salvage Value
Interest in Compensation for Loss of Support
Compensation for Medical Error at Birth and Permanent Disability
Vehicle Depreciation · Labour Law

Contact

You can reach us through our contact page to discuss an accident, insurance or compensation matter.

Istanbul: Kartaltepe Mah. Süvari Cad. Torkam E5 Residence Block A No:21, Sefaköy, Küçükçekmece
Tel: +90 212 579 79 85

This page is for general information purposes only and does not constitute legal advice for your specific case. Legislation, monetary thresholds and case law may change; before taking action, please assess the current position with a lawyer.

Insurance and Compensation Law