Compensation for Diminution in Value and Loss of Support Following a Traffic Accident

What is vehicle depreciation?

A car involved in a traffic accident and subsequently repaired loses its pre-accident market value due to its accident history (TRAMER record) and replaced parts. Even if no parts are replaced and the paintwork is flawless, its appearance as "accident-damaged" in expert reports or TRAMER inquiries will directly reduce its resale value.

Vehicle depreciation compensationis a legal right that allows a vehicle owner to claim compensation from the negligent party or insurance company for the decrease in the market value of their vehicle resulting from an accident. The aim is to compensate for this decrease in the vehicle owner's assets and restore them to their previous economic balance.

Who can claim compensation for vehicle depreciation?

It is not possible to claim compensation for depreciation in value after every accident. According to legal regulations and Supreme Court precedents, certain conditions must be met simultaneously in order to claim compensation for vehicle depreciation:

1. Fault Percentage Requirement: To be eligible for a claim for diminished value, not be entirely at fault (100% at fault) the accident. The other party must be entirely or partially at fault. If you are entirely at fault, you cannot claim for diminished value of your own vehicle unless your comprehensive insurance policy covers this. However, you can claim diminished value from the other party's Compulsory Financial Liability Insurance (ZMSS) in proportion to their fault (for example, if you are 50%, 75%, or 100% at fault).

2. Vehicle Ownership Status: that the person filing a compensation claim the registered owner of the vehicle . The vehicle owner and the driver do not have to be the same person; however, the right to sue or file a claim legally belongs to the vehicle owner.

3. Vehicle Damage History and Repair Status:

   • The assessment may differ if the vehicle has previously been involved in a major accident in the same area and has not previously received a depreciation claim.

   • Vehicles that are scrapped due to irreparable damage cannot be considered to have lost value, because these vehicles are not repaired and returned to the market.

Which Vehicles Are Exempt from Depreciation Compensation? (Exceptions)

According to the general terms and conditions of insurance legislation, vehicle depreciation compensation is not paid in some cases:

• For some vehicles with very high mileage or age, claims may be rejected on the grounds that their market impact has decreased (however, this may be flexible according to court decisions based on the specifics of the case).

• Repairs such as simple plastic bumper or window replacements are generally not considered depreciation because they do not affect body integrity or the frame.

What documents are required for a depreciation claim?

Submitting complete documentation when applying to insurance companies or legal authorities is crucial for speeding up the process

• Accident Report Form (ARF) and photographs of the accident scene,

• Repair invoices and expert reports issued by an authorized or contracted service provider .

• Vehicle registration certificate,

• Applicant's IBAN information and a photocopy of their ID.

Application Process and Important Considerations

Claims for vehicle depreciation must first be submitted in writing to the insurance company of the vehicle in question (or the traffic insurer of the other party that caused the accident). The insurance company has 15 days from the date of application to review and pay the claim . If a positive response is not received within this period, or if an insufficient payment is made, it is possible to apply to the Insurance Arbitration Commission or file a lawsuit in the Commercial Court of First Instance

What are the statute of limitations periods for vehicle depreciation claims?

One of the most common mistakes vehicle owners make after a traffic accident is delaying the collection of their financial losses. Between service processes, insurance correspondence, and the psychological impact of the accident, months can fly by. However, as with all rights in the Turkish legal system, there are strict time limits for claiming compensation for vehicle depreciation. If these deadlines are missed, your right to receive compensation may be completely lost, even if you are in the right.

What is the general statute of limitations for vehicle depreciation claims?

According to the provisions of the Turkish Code of Obligations and the Highway Traffic Law, general statutes of limitations are stipulated for claims for material damages arising from torts (traffic accidents). These rules also apply to claims for vehicle depreciation:

• 2-Year Statute of Limitations: The injured party must file a claim for vehicle depreciation within 2 years from the date they learn of the damage and the perpetrator . In practice, this period is generally considered to begin from the date of the accident ; because it is assumed that the accident, who is at fault, and the damage to the vehicle are learned at the time of the accident.

• 10-Year Statute of Limitations Exception: If a traffic accident results not only in material damage but also in injury or death (i.e., constitutes the crime of causing injury or death through negligence under the Turkish Penal Code), then, according to Article 72 of the Turkish Code of Obligations, the longer statute of limitations periods in the penal code apply. In this case, the statute of limitations for compensation for material damages and depreciation is 10 years.

When Does the Time Limit Begin? (“Learning” Criterion)

The commencement of the statute of limitations is one of the most debated issues in legal disputes. As a general rule, the period on the day of the accident . However, in some exceptional cases, the date on which "the damage was fully learned" may be taken as the basis.

• The fact that a hidden damage to the vehicle is discovered later, or that the repair process takes a very long time, does not change the general rule; the time limit starts running from the day of the accident.

• Therefore, initiating legal proceedings as soon as expert reports and repair bills are available after the accident is the safest approach.

Does Applying to an Insurance Company Stop the Statute of Limitations?

One of the most frequently asked questions in legal proceedings is: "I sent a petition to the insurance company; has the statute of limitations been suspended?"

According to the Highway Traffic Law, a written application by the injured party to the insurance company suspends the statute of limitations. This written application interrupts the statute of limitations, and it begins running again from the date of application. However, if the insurance company prolongs the process or offers an unsatisfactory proposal, waiting for years relying on this interruption may lead to a loss of rights. After receiving a rejection from the insurance company or failing to respond for a long time, immediate action should be taken through the Insurance Arbitration Commission or a court.

What happens if the statute of limitations expires?

Even if you apply to the insurance company after the general two-year statute of limitations has expired, the companies the defense of statute of limitations . Even if you have applied to a court or the Insurance Arbitration Commission, the judge will be obliged to dismiss the case if the other party raises the statute of limitations objection. In other words, no matter how certain your claim is, the expiration of the time limit makes your claim legally uncollectible.

Key Criteria Considered in Calculating Diminution in Value

In accordance with the regulations of the Ministry of Treasury and Finance and insurance legislation, a random figure is not determined when calculating vehicle depreciation. A standard formula based on concrete criteria is applied. The main elements considered in this calculation are as follows:

1. The vehicle's market value:

   The vehicle's resale value at the time of the accident forms the basis for the calculation. The vehicle's make, model, year of manufacture, and market supply and demand all influence the determination of the market value. The depreciation cannot exceed a certain percentage of the vehicle's pre-accident market value.

2. Vehicle Mileage:

   Mileage is the most important criterion indicating the depreciation of a vehicle. Generally, for vehicles above a certain mileage (e.g., 165,000 km and above, although this limit may be flexible according to Supreme Court rulings), the amount of depreciation is reduced or does not increase at all. Conversely, for vehicles with lower mileage, the depreciation rate is calculated to be higher.

3. Nature and Location of Damaged Parts:

   Not every part replacement or repair results in the same degree of depreciation.

   • Repairs or modifications to the chassis, underbody, pillars, roof, and main frame are the factors that most significantly reduce a vehicle's value.

   • Painting or replacing removable (bolted) parts such as fenders, doors, or hoods also leads to a decrease in value; however, the impact is different compared to structural damage.

   • However, non-structural repairs such as replacing only plastic bumpers or windows are generally not considered depreciation in value.

4. Vehicle History and Damage (Previous Damages):

   It is checked whether the vehicle has been involved in another accident in the same areas previously. If the damaged part has been previously damaged and repaired, the full depreciation may not be calculated for the same part a second time.

How to Apply the Depreciation Calculation Formula?

Insurance companies and court experts base their calculations on the formula specified in the general terms and conditions. This formula can be summarized as follows:

• Damage Extent Factor: This is calculated by multiplying the weight of the repaired parts of the vehicle by a coefficient ranging from 0.10% to 1.00%.

• Mileage Factor: A coefficient is applied based on the vehicle's mileage at the time of the accident, after deducting wear and tear.

Why are expert reports important?

Depreciation calculations require technical knowledge and expertise. Random calculation tools found online or the initially low quotes offered by insurance companies may not reflect reality.

When filing a claim with an insurance company or pursuing legal action through an Insurance Arbitration Commission/court, submitting a detailed report prepared by an expert actuarial consultant is crucial to ensuring you receive the full amount of compensation you are entitled to.

Who is entitled to compensation for loss of support in fatal traffic accidents?

Fatalities resulting from traffic accidents cause not only profound emotional distress but also significant economic hardship for the bereaved families. According to the Turkish Code of Obligations, "compensation for loss of support" is stipulated to alleviate the suffering of those who are deprived of the financial support of the deceased .

1. Individuals Eligible for Loss of Support Compensation

According to legal regulations and established court decisions, the main categories of people who are left behind by a deceased person and who can claim compensation are as follows:

a. The Deceased's Spouse

• The surviving spouse of the deceased spouse is the direct and primary rights holder.

• Whether a spouse works or has their own income does not, as a rule, prevent them from receiving compensation for loss of support; because it is assumed that there is a mutual obligation of solidarity and support between spouses as required by the ordinary course of life.

b. Children (Young and Adult Children)

• The deceased person's minor children (under 18 years of age) are entitled to compensation because they have been deprived of their parent's support.

• Children are covered by support programs for as long as they continue their education (typically until age 18 for secondary education and 25 for higher education).

• If the deceased is an adult (over 18 years old), they can benefit from this right if they are a student or in need of assistance.

c. Mothers and Fathers

• Even if the person who died in the traffic accident was not married or had children, their parents are considered to have lost their support.

• According to Supreme Court rulings, the fact that parents are economically well-off or wealthy does not, in itself, negate the reality that they are deprived of their children's support. It is accepted as the normal course of life that children will support their families financially or through services.

d. Fiancé, Partner, or Other Relatives (Subject to Proof)

• Unlike inheritance law, third parties who are proven to have provided regular and continuous financial support to the deceased during their lifetime can also claim this compensation, even if they are not related by blood

• For example, the deceased's life partner, fiancé(e), or relatives they regularly cared for have the right to claim compensation for loss of support, provided they can prove the supportive relationship between them (regular money transfers, cohabitation, etc.).

2. Essential Requirements for Claiming Compensation

Compensation is not automatically awarded in every fatal accident; the claimants and the deceased must legally meet the following criteria:

• Regular and Continuous Support Relationship: The deceased must have actively provided the surviving family member with material or quantifiable service assistance (care, household chores, etc.) during their lifetime. Occasional or incidental assistance is not considered support.

• Fault Status: It is a condition that the other party (or the driver of the vehicle) causing the accident is at fault. The deceased may also be at fault in the accident; in this case, the deceased's percentage of fault is deducted from the calculated compensation amount, but their relatives do not lose their right to compensation unless they were entirely at fault.

3. Application Process and Rights of Eligible Individuals

Relatives who have lost support can both apply to the compulsory traffic insurance (ZMSS) of the vehicle that caused the accident and file a lawsuit for material (and, if the conditions are met, moral) damages against the negligent driver and the vehicle owner.

When calculating the compensation amount, factors such as the deceased's age, income level, and how long the surviving relatives will benefit from the support in the future are taken into account by actuarial experts.

Methods of Calculating Loss of Support Compensation and the Impact of Salary/Income

In compensation lawsuits filed by beneficiaries following fatal traffic accidents, the most technical and sensitive stage is determining the amount of compensation. There is a common misconception that "the lump sum payment to the surviving family members is equal to the deceased's salary." However, this calculation is not a simple multiplication but requires special mathematical formulas and actuarial data.

1. What are the criteria used in the calculation?

In legal and insurance practice, compensation amounts are not determined based on random figures. The key parameters considered by courts and expert witnesses are as follows:

• Deceased Person's Income: This is the most fundamental basis of the calculation.

• Age and Life Expectancy: The remaining life expectancy of the deceased and their beneficiaries is determined using TRH-2010 (Turkish Life Table) data.

• Support Contributions (Share Distribution): This refers to the ratio of the deceased's earnings spent on themselves (their own share, if any) to the ratio allocated to their family.

• Fault Percentage: If the deceased person was at fault in the accident, this percentage will be deducted from the calculated amount.

2. How Does Salary and Income Status Affect Compensation?

In compensation for loss of support "income" element forms the basis of the compensation. The legal nature and documentation of the salary directly affect the calculation:

a. Documented Actual Income (Insured Employees and Civil Servants)

If the deceased was employed in an insured job or was a civil servant, their Social Security Institution (SGK) records and payrolls are used as the basis. An annual earnings base is established based on net salary (or including any additional regular income). Since a high-earning person will provide a higher contribution to their surviving family, the compensation amount will increase accordingly.

b. Self-employed individuals, tradespeople, or company owners

If the individual is a tradesperson or a self-employed business owner, their tax certificate, chamber of commerce registration, commercial ledgers, and bank transactions are examined. In cases where the actual income is not fully reflected in official records, research into comparable business sectors may be conducted to determine the true income.

c. Cases Without Documented or Regular Income (Minimum Wage Criterion)

If the deceased was a housewife, unemployed, or working informally (daily wage) and no official income can be documented, the net minimum wage . Since the domestic labor of housewives is legally considered a form of support, their income is not disregarded, and compensation is calculated for beneficiaries based on the minimum wage.

d. Distinction Between Active and Passive Periods

• Active Period: This is the period up to the probable age limit at which the deceased person could work (usually 60 or 65 years old). Increases based on actual income or professional seniority are taken into account during this period.

• Passive Period: This is the period after retirement age. Since it is assumed that the person will not be able to work during this period, calculations the minimum wage level for that period.

3. How is the Actuarial Calculation Method Performed?

Compensation calculations are performed by actuarial science experts. The process follows these steps:

1. Distribution of Inheritance: According to Supreme Court precedents, shares are allocated from the deceased's income (for example, if there is a spouse and children; the deceased receives 2 shares, the spouse receives 2 shares, and each child receives 1 share, thus distributing the income proportionally).

2. Calculating Future Years: The years the deceased would have continued to provide support (the periods until the children reach adulthood, the remaining lifespan of the spouse, etc.) are calculated individually.

3. Discounting (Present Value Reduction): A technical interest rate (discount rate) is applied to adjust a lump sum payment due in the future to its present economic purchasing power (present value).

Insurance Company Application Process and Mandatory Steps in Case of a Traffic Accident

The first and most important legal step in seeking compensation for material damage, loss of value, or bodily harm (injury, death) to a vehicle following a traffic accident is a written application to the relevant insurance company. According to the regulations in the Turkish legal system and the Highway Traffic Law, it is not legally possible to apply directly to the court or the Insurance Arbitration Commission without first applying to the insurance company.

Step 1: Gathering Necessary Documents After the Accident

To ensure a complete and prompt application to the insurance company, it is essential to gather the correct documents. The basic documents that should be included in the application file are as follows:

• Accident Report (AR): A report detailing the circumstances of the accident, the percentages of fault, and the parties involved (for accidents involving material damage, a report and photographs of the accident scene; for accidents involving injury/fatality, a police or gendarmerie accident report).

• Photocopies of Vehicle Registration and Driver's License: certificate and driver's license of the vehicle involved in the accident.

• Damage and Repair Documents: If the vehicle was repaired at a service center, detailed repair invoices, a list of replaced parts, and an expert report.

• Diminution in Value or Compensation Report: A report calculating the diminution in value prepared by an expert appraiser or actuary (this allows for a more concrete approach to the application).

• Medical or Death Certificates (If Available): In cases of injury-related accidents, hospital reports, medical reports, and disability certificates; in cases of fatal accidents, inheritance certificate, death certificate, and burial expense invoices.

• IBAN Information: Bank account details of the applicant (vehicle owner or beneficiary) to whom the compensation will be deposited.

Step 2: Which Insurance Company Should You Apply To?

The insurance company to which the compensation claim will be directed is determined according to the fault status of the accident:

• Compulsory Motor Vehicle Liability Insurance (ZMSS): The insurance company providing the traffic insurance for the other party at fault in the accident is contacted. Claims for material damage, depreciation in value, or injury/death compensation for your vehicle are made under this policy.

• Your Own Comprehensive Car Insurance: If your own comprehensive car insurance policy includes "depreciation" coverage, or if the other party's insurance is unsuccessful, you may be able to claim compensation from your own comprehensive car insurance (however, the general practice is to collect from the other party's traffic insurance).

Step 3: How to Submit a Written Application to the Insurance Company?

Applications made verbally or solely by telephone do not have legal effect. The application in writing with a wet signature (or with a secure electronic signature via KEP/e-Government) to the relevant insurance company's headquarters or official application address. The amount requested must be clearly stated in the application, and all prepared documents must be attached to the application.

Step 4: Insurance Company Response Time (Legal 15 Days)

According to Article 97 of the Highway Traffic Law, rights holders must submit a written application to the relevant insurance company before initiating legal proceedings. The insurance company within a maximum of 15 days .

During this period, the insurance company:

• You can accept the request and make the payment,

• They may partially accept the request (offer an incomplete payment),

• Or it may reject the application on legal grounds.

Things to Consider to Avoid Loss of Rights During the Insurance Company Process

Insurance companies may offer low payments or reject applications on unfair grounds in order to reduce costs. If there is no positive response, insufficient payment, or the claim is rejected after the 15-day legal period, the process is stalled. At this stage, applying directly to the Insurance Arbitration Commission or filing a lawsuit in the Commercial Court of First Instance becomes a legal necessity.

What should be done if the insurance company does not pay or underpays the depreciation in value?

1. Why might an insurance company's reasons for refusal or underpayment be unfair?

Insurance companies often reject claims or underpay for reasons such as minimizing costs:

• The defense argues that "there is no causal link between the accident and the damage."

• The claim that the vehicle has high mileage or is too old,

• Previously, the excuse was that the same part was painted/damaged

• Allegations that legal deadlines have been missed.

However, a thorough expert review can easily prove that many of these justifications lack legal and technical basis. The insurance company's initial offer is not the final decision.

2. Second Step: Application to the Insurance Arbitration Commission (Quick Remedy)

The lengthy nature of court proceedings has made the Insurance Arbitration Commission the most advantageous and popular option for resolving insurance disputes

• What is the Insurance Arbitration Commission? It is a specialized body that resolves disputes between insurance companies and policyholders or beneficiaries through independent arbitrators, without going to court.

• Why is it preferred? While litigation processes in regular Commercial Courts can take months or even years, disputes in the Arbitration Commission are generally in a short period of 4 to 6 months .

• What are the application requirements? To apply to the commission, a written application must first have been submitted to the insurance company, and the company must have given a negative response to this application (or failed to respond at all within the 15-day legal period).

In arbitration applications, an expert actuarial report showing the actual depreciation in value of the vehicle is attached to the file, and the arbitration panel makes a fair decision. The commission's decisions have the force of a judgment; that is, they can be collected directly through enforcement proceedings.

3. Alternative Option: Filing a Lawsuit in the Commercial Court of First Instance

Aside from the Insurance Arbitration Commission, another legal option is to file a lawsuit in the Commercial Courts of First Instance

• The competent court for vehicle depreciation claims arising from traffic accidents is the Commercial Court of First Instance (it is considered a commercial case according to the Highway Traffic Law, even without requiring the condition of being a commercial enterprise).

• Before filing a lawsuit, a mandatory mediation process is required. If an agreement cannot be reached through mediation, the process continues through litigation. Although court proceedings take longer than arbitration, it is the preferred method for complex and high-stakes disputes.

What should be done to avoid losing rights during the process?

Accepting the low payment offered by the insurance company, or waiving your rights by saying "they don't pay anyway," will only benefit the at-fault insurance company. You can pursue your rights for every penny underpaid or unpaid, along with legal interest.

Which court has jurisdiction and authority in vehicle depreciation claims?

If an insurance company rejects a claim for diminished value or makes an insufficient payment after a traffic accident, legal action becomes inevitable for the rights holders. One of the most technical issues encountered at this stage is determining which court to file the lawsuit or legal application with. Filing lawsuits in the wrong court or in an unauthorized location can lead to wasted time and additional costs.

1. Which Court Has Competent Status? (Which Court Handles This Case?)

In the Turkish legal system, the jurisdiction of courts is determined separately according to the type of lawsuit. Claims for vehicle depreciation resulting from traffic accidents are, by their nature, tort and compensation disputes.

• Commercial Court of First Instance: According to the Highway Traffic Law and related legislation, the Commercial Court of First Instance has jurisdiction over compensation lawsuits filed against operators and insurance companies. Even if the vehicle is the individual's private car, the lawsuit takes on a commercial character because the opposing party is an insurance company (commercial entity).

• Distinction between Civil Courts of First Instance: If the lawsuit is filed not only against the insurance company but also directly against the driver or owner (as an individual) of the vehicle that caused the accident, the competent court may be the Civil Court of First Instance. However, in practice, the lawsuit is generally directed against the insurance company.

2. Which Court Has Jurisdiction? (In Which City Can the Lawsuit Be Filed?)

After determining that the competent court is the Commercial Court of First Instance, the geographical location where the case will be filed (jurisdiction rule) becomes important. According to the provisions of the Code of Civil Procedure (HMK) and the Highway Traffic Law, competent courts may be selected from more than one location

• Court of the Place Where the Accident Occurred: The Civil Commercial Court of the place where the traffic accident occurred has jurisdiction.

• Location of the Defendant Insurance Company's Headquarters or Branch: The lawsuit may be filed in the court located where the insurance company's headquarters or, depending on its type, its relevant regional office/branch is situated.

• Court of the Injured Party's (Plaintiff's) Place of Residence: According to the special jurisdiction rule in the Highway Traffic Law, the court of the injured party's place of residence (domicile) also has jurisdiction in liability cases arising from motor vehicle accidents. This provides a great convenience for vehicle owners; it offers the possibility to file a lawsuit in the city where they live.

3. Mandatory Mediation Requirement Before the Commercial Court of First Instance

As with commercial disputes, in vehicle depreciation claims, the mandatory mediation process before going to court is a prerequisite for filing a lawsuit. If a lawsuit is filed directly in the Commercial Court of First Instance without first applying to a mediation office, the court will dismiss the case on procedural grounds due to "lack of a prerequisite for filing a lawsuit." If an agreement is not reached in mediation, the final report is attached to the lawsuit petition, and the court process begins.

4. Alternative and Fast Route: Insurance Arbitration Commission

Although the title suggests a "court" process, in vehicle depreciation disputes, the Insurance Arbitration Commission is the first choice for lawyers and rights holders rather than the courts.

• The Arbitration Commission has flexible jurisdiction and mandates, and insurance disputes in the applicant's place of residence are resolved quickly.

• Because it yields results much faster than court proceedings (on average within 4-6 months), arbitration is the most advantageous legal method.

Rights of Drivers Not Fully at Fault Regarding Diminution in Value and Compensation

One of the most frequently asked and often misunderstood questions by vehicle owners after a traffic accident concerns fault. A common misconception is that "If I was involved in an accident, I'm definitely guilty" or "If I'm at fault, I won't receive any compensation ." However, in Turkish traffic and insurance law, fault ratios are not always 100% one-sided. Drivers who are not entirely at fault (100% at fault) have significant legal rights under certain conditions, regardless of their degree of fault in the accident.

1. What does "not entirely faultless" mean?

In traffic accident reports or expert examinations, the fault percentages of the parties are given as a percentage (for example; 0%, 25%, 50%, 75% or 100%).

• Fully at Fault (100%): This means the accident was entirely your fault.

• Partially Faulty or Faultless (0%, 25%, 50%, etc.): This refers to situations where the other party is also at fault in the accident, or where you are not at fault at all.

Any driver who is not entirely at fault in an accident (i.e., the other party is at least 25%, 50%, or 100% at fault) has the legal right to claim compensation for damages.

2. What are the rights of drivers who are not entirely at fault?

Depending on the degree to which the other party is at fault in the accident, the driver has the following legal rights:

a. Vehicle Depreciation Compensation

If you are not entirely at fault in the accident, you can claim compensation for the decrease in the market value (depreciation) of your vehicle from the other party's Compulsory Financial Liability Insurance (ZMSS).

• Important Detail: If you are 50% at fault in the accident , you will only receive the portion of the total calculated depreciation corresponding to the other party's fault percentage (50%). If the other party is 100% at fault , you will receive the full amount of the depreciation.

b. Vehicle Deprivation Damage (Loss of Commercial Earnings)

Commercial taxis, company vehicles, or privately owned vehicles actively used in daily life cause economic losses to their owners while they are undergoing repairs. The party not at fault in an accident can claim compensation from the other party for lost earnings or rental car expenses for the number of days the vehicle was in service.

c. Rights to Moral and Material Compensation in Case of Injury

If an injury (temporary or permanent disability) occurs in the accident, the driver who is not entirely at fault;

• Treatment costs,

• Compensation for income losses during the period of inability to work (temporary disability compensation),

• The plaintiff can claim compensation for disability resulting from the impairment of bodily integrity, as well as compensation for emotional distress to alleviate the pain and suffering, from the other party's insurance company and the negligent driver.

3. Utilizing Your Own Comprehensive Car Insurance ("Police Intervention" or Mini Repair)

In some cases, drivers who don't want to deal with the other party's insurance or who want the process to be faster can activate their own comprehensive insurance. If your comprehensive insurance policy includes "depreciation coverage" or "no-claims discount protection," you can secure your rights through your insurance company in accidents where you are not at fault or partially at fault. However, the most general and practical way is to apply to the other party's compulsory traffic insurance.

Vehicle Depreciation and Loss of Earnings (Loss of Earnings) in Company Vehicles and Commercial Taxis

1. Is it possible to claim compensation for depreciation in value for commercial vehicles and company cars?

There is a common misconception in society that "company vehicles are not eligible for compensation for depreciation because they are registered as company assets." However, according to Supreme Court precedents, whether it is a private vehicle registered in an individual's name or a commercial fleet vehicle registered as an asset of a company, the party not at fault in the accident has the right to claim compensation for the depreciation of the vehicle .

• Mileage and Age Limit Flexibility: Commercial taxis, cargo vehicles, or company fleets can quickly reach high mileage due to heavy use. While insurance companies may reject depreciation claims on the grounds of high mileage, courts and expert witnesses ensure fair depreciation calculations by considering the circulation of commercial vehicles in the market and the damage they have sustained.

2. What is Vehicle Loss Damage (Loss of Earnings) and How is it Calculated?

In private vehicles, drivers can use public transportation or find alternative solutions on days they are without a vehicle; therefore, compensation for loss of service is not always directly recognized. However, commercial taxis, minibuses, rent-a-car vehicles, or company cars actively used for commercial purposes .

• What is Vehicle Loss of Income? It is the net loss resulting from the vehicle being unable to operate and generate commercial income during the repair period following an accident.

• How is it calculated? For commercial taxis, the average daily gross/net revenue (daily change or turnover) is determined. The number of days the vehicle is in repair (service entry and exit dates) is multiplied by the daily earnings to calculate the loss due to loss. Additionally, expenses such as the driver's wages or fuel are deducted from the income to determine the net earnings.

3. Can Rental (Fleet) Companies Claim Vehicle Loss Damages?

When operational fleet vehicles that companies obtain from long-term or short-term leasing companies are involved in accidents, companies suffer double the losses:

1. Either the rental fee paid to the rental company continues to accrue, or a replacement vehicle cost is incurred

2. And the vehicle's uninterrupted contribution to commercial operation ceases.

According to Supreme Court rulings, companies have the right to claim compensation from the negligent party for the actual damages they incurred due to their inability to use the vehicle, or for the expenses they had to cover to replace it with a similar vehicle (the cost of the replacement vehicle), even if they have leased the vehicle.

4. Critical Documents to Consider During the Application Process

When filing claims for both depreciation in value and loss of earnings (loss of profit) for commercial vehicles and company cars, it is essential that the file is prepared completely and accurately

• Accident report and documents indicating fault,

• Official service entry and exit records showing the number of days the vehicle was at the authorized or contracted service center .

• For commercial taxis, the relevant chamber (Drivers' Chamber) rates, taximeter averages, or daily turnover documents are required

• Accounting records and invoices for company vehicles.