RIGHT OF RECOURSE OF INSURANCE COMPANIES IN TRAFFIC ACCIDENTS

RIGHT OF RECOURSE OF INSURANCE COMPANIES IN TRAFFIC ACCIDENTS

According to the provisions of the Highway Traffic Law No. 2918, compensation claims arising from damages caused by a traffic accident are covered within the limits of the insured person's liability and according to the content specified in the General Conditions, up to the mandatory insurance limits in effect at the time of the accident. Accordingly, bodily injuries and material damages are covered by mandatory traffic insurance. The types of coverage under the general conditions mentioned above are: material damage coverage (including depreciation), health expenses coverage, permanent disability coverage, and loss of support coverage. In certain circumstances, the insurance company has the right of recourse against the insured person under these general conditions.

WHAT IS RECOURSE?

First, let's look at the meaning of the word "recourse": it means withdrawal or returning. In legal terms, recourse is when one person legally takes over the rights and responsibilities of another. In insurance law, recourse is the recovery of material damage to the property covered by the insurance policy from the party at fault for causing the damage.

When damage occurs to property covered by an insurance policy, insured individuals apply to the relevant insurance company for compensation for their losses. The insurance company covers this material damage and then pursues legal action to recover the damage from the person or persons at fault who caused the accident. This recourse is possible through the right of recourse. If the conditions are met, the insurance company can recover the compensation paid from the operator of the motor vehicle and the owner of the related business through legal means.

WHAT IS THE RIGHT OF RECOURSE?

As explained above, the word "recourse" means to reclaim or withdraw. A right, on the other hand, is a benefit legally granted to individuals, from which the owner derives advantage through protection. Looking at the legal meaning of the right of recourse, it appears as the right of reclaiming or the right of withdrawal.

To define the right of recourse in detail, it is a separate and independent right of the person who pays another's debt, a right that is legally extinguished upon payment of the debt. The right of recourse can arise from law as well as from contract.

In the context of insurance law, the right of recourse is the right of an insurance company to demand reimbursement from the party at fault in the accident, after having compensated the insured for their material damages, if the possibility of recourse arises.

In the event of a traffic accident, for an insured person to claim compensation for financial losses incurred by the other party (the party at fault in the accident), the insured person must not apply to the insurance company for compensation for those losses. This impediment is due to the prohibition against unjust enrichment.

OBJECTION TO THE INSURANCE COMPANY'S RECOURSE AND ENFORCEMENT PROCEEDINGS

Certain conditions must be met for the insurance company to exercise its right of recourse. If these conditions are not met, the insurance company does not have the right of recourse. If the amount to be recouped is higher than the amount paid to the insured, the insurance company may object to the recourse and enforcement proceedings.

The circumstances under which insurance companies have the right to recourse are:

1. The incident requiring compensation must have occurred as a result of the intentional or negligent conduct of the person or persons responsible. If the driver or operator of the vehicle is not at fault, the insurance company has no right of recourse.

2 – In order for compensation to be paid, the incident must have involved the driver either lacking a driver's license or not possessing a license appropriate for the vehicle they were driving.

3 – In cases where compensation is required, the theft or robbery of the vehicle must have occurred if the insured person is at fault in these events.

4. For compensation to be awarded, the incident must have occurred while the person was under the influence of drugs or alcohol.

5 – For compensation to be paid, the vehicle must have exploded as a result of carrying passengers despite not having a passenger transport license, or of transporting explosives and hazardous materials without a license specified in the relevant law.

RECOURSE LAWSUIT FILED BY THE INSURANCE COMPANY

The right of recourse of the insurance company in traffic accidents applies to all types of insurance. However, the type of insurance in which the right of recourse is most frequently used is comprehensive car insurance (kasko).

In the general conditions stipulated in the relevant law, the insurance company may file a recourse action against the insured. However, the insurance company cannot exercise its right of recourse in the cases specified in the relevant law. There must be a suitable causal link between the accident and the stated causes. The existence of this causal link must be proven by the insured.