The Insurer's Duty to Inform in Insurance Law and the Legal Consequences of its Breach

Insurance contracts are legal documents that are essentially based on trust and are rich in technical details. To balance the information asymmetry between the insurer (company) and the insured (consumer/commercial enterprise) in these contracts, the Turkish Commercial Code (TTK) and related regulations impose a heavy "duty to inform" on the insurer

In this article, we will examine the scope of this insurer's obligation, the terms of its application, and the rights of the insured in case of a breach of this obligation.

1. Legal Basis of the Obligation to Inform

Article 1423 of the Turkish Commercial Code No. 6102 explicitly regulates the insurer's duty to inform. According to this article, insurers and their agents are obligated to inform the insured of all technical information, risks, and exclusions related to the insurance contract before the contract is concluded.

This obligation is not merely a matter of "providing information"; it is a duty to ensure that the insured fully understands the consequences of the contract they have signed.

2. Scope of the Obligation to Inform: What Should Be Reported?

The insurer must provide the following information completely as part of the disclosure process:

• Coverage Scope: Which risks the policy covers.

• Exclusions from Coverage: The exceptions stated in the contract and the circumstances under which no compensation will be paid (This is the most critical point).

• Rights and Obligations: The insured's premium payment obligations, notifications to be made when a risk occurs, and statute of limitations periods.

• Special Conditions: Special provisions added to the general conditions that may be detrimental to the insured.

3. Formatting Requirement: Information Form and 12-Point Font Rule

In insurance law, verbal disclosure is not sufficient. the Regulation on Information in Insurance Contracts :

• Information should be provided in writing using a document called an "Information Form"

• This form should not be included as part of the policy, but should be submitted as a separate supplement.

• The text must be at least 12 points in size and legible

• The insured person must sign the form in their own handwriting at the bottom, stating "I have received, read, and understood this information form.".

4. Violation of the Obligation to Provide Information and Sanctions

If the insurer fails to fulfill its duty to inform the public at all, or fulfills it incompletely, it will face serious legal consequences

A. Right to Object to and Withdraw from the Contract

According to Article 1423/2 of the Turkish Commercial Code, if the insurer has not provided the information form or has provided it incompletely, the insured 14 days . If no objection is made within this period, the contract is deemed to have been concluded under the initial terms. However, if the insurer cannot prove that it failed to provide information, this period will not begin to run.

B. Exclusions from Coverage and Invalidity of Limitations

According to the established jurisprudence of the Supreme Court of Turkey, if the insurer has not clearly and duly informed the insured of the exclusions from coverage, the insurer cannot invoke these restrictions against the insured.

Example: Even if a specific situation is excluded from coverage in a comprehensive car insurance policy, if this situation is not explicitly stated in the information form, the insurance company cannot avoid paying compensation by simply saying "this situation is excluded from coverage".

C. Liability for Damages

If the insured suffers a loss due to incorrect or incomplete information provided by the insurer (for example, losing the opportunity to obtain a more comprehensive policy due to incorrect information), the insurer is obligated to compensate for that loss.

5. Who Bears the Burden of Proof?

One of the most important protective provisions of insurance law is the burden of proof. The burden of proving that the obligation to inform has been fulfilled rests with the insurer (insurance company). The company must document, with a signature, that the information form has been delivered and its contents explained to the insured. Otherwise, it is presumed that the information was not provided.

Conclusion

Carefully reviewing the "Information Form" when signing insurance contracts is vital to avoid losing your rights in the event of a possible claim. Insurance companies neglecting their duty to inform the insured provides a broad shield of protection and often results in compensation even for damages that appear "outside the scope" in the policy.