DASK (Compulsory Earthquake Insurance): Coverage Limits, Exclusions, and Dispute Resolution

Entrance

Turkey is an earthquake-prone country situated on active fault lines. Therefore, following the 1999 Marmara Earthquake, the Compulsory Earthquake Insurance (DASK) system was established to minimize economic losses caused by earthquakes

DASK (Turkish Natural Disaster Insurance Pool) is implemented in accordance with the Disaster Insurance Law No. 6305 and the General Terms and Conditions of Compulsory Earthquake Insurance that came into force thereunder . Its purpose is to provide coverage for the material damages that homeowners may suffer after an earthquake and to reduce the burden of compensation on the public.

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1. The Legal Basis and Purpose of DASK (Turkish Natural Disaster Insurance Pool)

The legal basis for Compulsory Earthquake Insurance is Articles 2 and 3 of the Disaster Insurance Law No. 6305 and of the Insurance Law No. 5684 .

According to Article 2 of the law:

"Mandatory earthquake insurance covers material damages directly caused by earthquakes and resulting fires, explosions, tsunamis, or landslides to insured buildings."

Therefore, DASK (Turkish Natural Disaster Insurance Pool) covers direct damages such as the collapse, damage, or rendering the dwelling uninhabitable.

The main purpose of this insurance is:

• Economic protection of individuals after an earthquake,
• Encouraging home ownership,
• To reduce the burden on public resources,
• to raise awareness about insurance.

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2. Scope of Compulsory Earthquake Insurance

2.1. Buildings Covered by Security

DASK (Turkish Natural Disaster Insurance Pool) coverage is only residential buildings. These include:

• Buildings where condominium ownership or floor easement rights have been established,
• Independent units registered in the land registry,
• These are buildings used as residences, excluding government offices.

However, commercial buildings such as shops, warehouses, and factories are not covered by DASK (Turkish Natural Disaster Insurance Pool).

2.2. Damages Covered by the Insurance Policy

The main damages covered by DASK insurance are:

• The complete or partial destruction of a building as a result of an earthquake .
• Damage to main elements such as foundations, walls, columns, beams, floors and roofs ,
• This refers to damage caused by fires, explosions, tsunamis, or landslides following an earthquake .

However, household goods, movable property , and indirect damages are not covered by DASK (Turkish Natural Disaster Insurance Pool).

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3. Coverage Limits and Indemnity Calculation

3.1. Current Security Deposit Limits

As of 2025, the maximum DASK (Turkish Natural Disaster Insurance Pool) coverage limit is 1 million TL.
This limit is updated annually the Ministry of Treasury and Finance in line with the Consumer Price Index (CPI).

The price per square meter is determined according to the building's construction style:

• Reinforced concrete buildings: 6,000 TL/m²
• Other structures (masonry, brickwork, etc.): 4,000 TL/m²

The total insured value of the property is calculated based on these amounts.

3.2. Compensation Payment Procedure

Damage assessments after an earthquake DASK (Turkish Natural Disaster Insurance Pool) experts .
Compensation is determined using the formula "damage rate x insured amount," provided it does not exceed the policy limit.

Example:
If a house with an insured value of 800,000 TL suffers 50% damage, the compensation to be paid will be 400,000 TL.

The compensation payment period is a maximum of 15 days.

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4. Exclusions from Coverage

Compulsory Earthquake Insurance only material damages directly caused by earthquakes .
The following cases are excluded:

1. Indirect Damages:
   Loss of profit, loss of rental income, business interruption, relocation expenses, compensation for non-pecuniary damages, etc.
2. Damage to Movable Property:
   Furniture, electronics, household goods, etc.
3. Land Value Loss:
   DASK (Turkish Natural Disaster Insurance Pool) does not cover land value; it only insures the value of the building.
4. Poor Materials and Lack of Maintenance:
   Damages resulting from defective construction materials or lack of building maintenance are not covered.
5. Intentional Act and Gross Negligence:
   The insured intentionally causes damage or fails to take precautions despite knowing that the building is at risk.
6. Buildings Constructed Without Legal Permits:
   Unlicensed or illegal constructions are not covered by DASK (Turkish Natural Disaster Insurance Pool).

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5. The Difference Between DASK (Compulsory Earthquake Insurance) and Home Insurance

One of the issues that is frequently confused in practice is confusing DASK (Turkish Natural Disaster Insurance Pool) with home insurance.

Criterion	DASK (Mandatory)	Home Insurance (Optional)
Legal Basis	Law No. 6305 on Disaster Insurance	Turkish Commercial Code and General Insurance Terms and Conditions
Scope	Only earthquake and related damages	Fire, flood, theft, etc.
Difficulty	Yes	No
Property Insurance	None	There is
Upper Limit	1 million TL	Unlimited (Subject to agreement)

Therefore, home insurance complements DASK (Turkish Natural Disaster Insurance Pool); together they provide complete protection.

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6. Issues of Dispute and Supreme Court Decisions

6.1. Underinsurance (Application Problem)

In some cases, the value of a building is reported as lower than its actual value. This is called "underinsurance".
The Supreme Court's 11th Civil Chamber, in its decision numbered 2019/10345 E., 2020/4763 K., stated:

"If the insurance amount is determined below the actual building value, the compensation amount will be reduced proportionally."

6.2. Unlicensed Buildings

DASK (Turkish Natural Disaster Insurance Pool) does not provide coverage for unlicensed buildings.
Supreme Court 11th Civil Chamber, 2018/2435 K.:

"No compensation can be paid for earthquake damage to an unlicensed building that does not have a building registration certificate."

However, with the 2023 Earthquake Zone regulations, buildings with temporary building registration certificates are considered exceptions in some cases.

6.3. Late Payment of Compensation

Interest is applied in case of delay in insurance compensation.
Supreme Court 11th Civil Chamber, Case No. 2017/2151, Decision No. 2019/4980.

"Failure to pay the compensation within 15 days of the completion of the expert report will result in the insurer's default."

6.4. Damage Assessment Disputes

The parties may object to the damage rate determined by the DASK (Turkish Natural Disaster Insurance Pool) expert.
In this case the Insurance Arbitration Commission or the Commercial Court of First Instance .

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7. Dispute Resolution Methods

7.1. Insurance Arbitration Commission

According to Article 30 of Law No. 5684, insurance disputes are primarily resolved by the Insurance Arbitration Commission . The application requirements for the Commission are as follows:

• A preliminary application must have been submitted to DASK (Turkish Natural Disaster Insurance Pool) and no response has been received, or a negative response must have been given
• In disputes up to 400,000 TL, the arbitration decision is final
• If the upper limit is exceeded, an appeals committee decision may be issued.

The Court of Cassation has also stated that arbitration is not mandatory and that the insured can go directly to court.

7.2. Legal Recourse

Insurance cases are handled outside of arbitration the Commercial Courts of First Instance.
The subject matter of the case is usually:

• Insufficient compensation payment,
• Refusal of compensation,
• The expert report is being challenged.

The court may order a recalculation of the damages through expert analysis.

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8. Points to Consider During Implementation

1. Renew the Policy Annually:
   Since DASK (Earthquake Insurance) is valid for one year, it must be renewed every year.
2. Address and Title Deed Information Must Be Entered Correctly:
   Incorrect address or property number may later lead to a refusal of compensation.
3. Expand Coverage with Additional Insurance:
   Protect your belongings and rental income with home insurance.
4. Report the Damage Immediately:
   Damage must be reported to DASK (Turkish Natural Disaster Insurance Pool) and your insurance agent within 15 days at the latest.
5. Exercise your right to challenge the expert report:
   If you believe the damage assessment rate has been determined too low, you can pursue arbitration or court action.

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9. Conclusion

Compulsory Earthquake Insurance (DASK) is the most important insurance mechanism in Turkey aimed at mitigating the economic consequences of earthquake damage.
However, in practice, problems such as insufficient coverage limits, broad interpretation of exclusions, and disputes in damage assessment are frequently encountered.

Supreme Court rulings have adopted an approach favorable to the insured, particularly in matters of underinsurance, unlicensed buildings, and delayed compensation.

In conclusion, DASK's effectiveness depends not only on the mandatory nature of the policy but also transparent information, fair compensation , and rapid dispute resolution mechanisms.