Legal Liability in Vehicle Depreciation Compensation

Entrance

Traffic accidents result not only in loss of life and bodily harm, but also significant losses in property value. One of these losses is vehicle depreciation. Vehicle depreciation refers to the decrease in the value of a vehicle in the used car market, even after it has been repaired following an accident.

The crucial point here is who will compensate for the loss of value and to what extent. In other words, legal liability, ways to avoid liability , and the content of liability are the determining factors. This article will comprehensively address the subject in light of the Turkish Code of Obligations (TBK), the Highway Traffic Law (KTK), insurance legislation, and Supreme Court decisions.

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1. The Concept and Legal Nature of Vehicle Depreciation

1.1. Definition of Vehicle Depreciation

Vehicle depreciation is the difference between a vehicle's market value before an accident and its value after repair. This difference arises from the trust issues created in the used car market by a vehicle's damage history.

1.2. Legal Nature

Vehicle depreciation financial damage . The aim is to restore the injured party to the financial situation they would have been in if the accident had not occurred.

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2. Legal Grounds

2.1. Turkish Code of Obligations

• Turkish Code of Obligations, Article 49: Anyone who causes harm to another through a culpable and unlawful act is obligated to compensate for that harm.

• Articles 50-52 of the Turkish Code of Obligations apply: The burden of proof for damages, causal link, and contributory negligence provisions shall apply.

2.2. Highway Traffic Law

• Article 85 of the Turkish Traffic Law: The operator of a motor vehicle is liable for damages arising from the operation of the vehicle.

• The operator's liability strict liability type, meaning it can arise even without fault.

2.3. Compulsory Financial Liability Insurance

• Motor insurance covers damages arising from the fault of the driver and the vehicle owner.

• Depreciation in value is explicitly covered under insurance.

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3. Legal Responsibility

3.1. Liability Based on Fault

• If the driver is at fault, they are directly responsible for the decrease in value.

• For example, a driver who runs a red light compensates the other vehicle for the decrease in its value.

3.2. Operator's Responsibility

• The vehicle owner is liable for any risks arising from the operation of the vehicle.

• Even if it is not their fault, they become liable for damages in their capacity as the operator.

3.3. Insurer's Liability

• The mandatory traffic insurer pays for the depreciation in value in proportion to the insured's fault.

• This liability is limited by the insurance coverage limit.

3.4. Joint and Several Liability

• The driver, the operator, and the insurance company are jointly and severally liable to the injured party.

• The injured party may claim compensation from whichever party they choose.

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4. Ways to Avoid Responsibility

4.1. Absence of Defects

• If the person who hit the other party's vehicle is not at fault, no liability arises.

• For example, force majeure (earthquake, lightning) or gross negligence of a third party.

4.2. Contributory Negligence

• If the injured party is also at fault, a reduction will be made in the compensation (Turkish Code of Obligations, Article 52).

• For example, a driver who exceeds the speed limit may not receive full compensation for the decrease in value of their vehicle after an accident.

4.3. Breaking the Causal Link

• No liability arises if there is no appropriate causal link between the damage and the act.

• For example, if the decrease in value of a vehicle is due to a previous accident, it cannot be attributed to the new accident.

4.4. Defenses of the Insurance Company

• The insurance company is relieved of liability if the policy coverage limit is exceeded.

• Furthermore, no liability arises if the accident is not covered by insurance (for example, during a race).

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5. Scope of Responsibility

5.1. Scope of Compensation

• Depreciation → the difference between the market value of a vehicle before and after an accident.

• Repair costs may also be charged.

5.2. Calculation Methods

• Insurance Information and Monitoring Center (SBM) formulas,

• Expert reports,

• Supreme Court precedents.

5.3. Interest and Court Costs

• In compensation cases, interest accrues from the date of the accident.

• Court costs and attorney fees are also borne by the defendant.

6. Detailed Analysis of Responsibility Types

6.1. Liability Based on Fault

• Fault is when a person acts contrary to their duty of care and diligence.

• In traffic accidents, driver fault is the primary basis for compensation for diminished value.

• Example: A driver who causes an accident by violating lane rules is liable to compensate the other vehicle for its decreased value.

6.2. Strict (Danger) Liability

• According to Article 85 of the Turkish Road Traffic Law, the operator is strictly liable for damages arising from the operation of the vehicle.

• This responsibility is of the nature of "liability for dangerous activities".

• In other words, even if the vehicle owner is not at fault, they will be held liable if the operation of their vehicle causes damage.

6.3. Insurer's Liability

• The insurance company is liable to the extent of the insured's degree of fault.

• The insurer's liability is limited to the coverage limit specified in the policy.

6.4. Joint and Several Liability

• The driver, operator, and insurer are jointly and severally liable to the injured party.

• The injured party can claim compensation directly from the insurance company.

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7. Strict and Dangerous Liability

7.1. Scope of Strict Liability

• Even if there is no fault on their part, the operator is responsible for any danger arising during the operation of the vehicle.

• This is a "social risk sharing" mechanism introduced by traffic law.

7.2. Legal Basis of Strict Liability

• Operating a vehicle is inherently a dangerous activity.

• Therefore, the operator is required to compensate for the damages resulting from the accident.

7.3. Exceptions

The operator may be relieved of liability in the following cases:

1. Force majeure (earthquake, lightning),

2. Gross negligence of a third party,

3. Gross negligence of the injured party.

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8. Burden of Proof in Exemption from Liability

8.1. General Principle

• According to Article 6 of the Turkish Code of Obligations, the burden of proof rests with the claiming party.

• However, in strict liability, the operator is presumed liable; the operator must prove the reasons for exoneration.

8.2. Burden of Proof on the Insurance Company

• To avoid paying, the insurer must prove either that there was no fault or that the situation was outside the scope of the policy.

8.3. The Court of Cassation's Opinion

• The Supreme Court states that in order for the operator to be absolved of liability, they must prove with conclusive evidence the force majeure event or the elements that severed the causal link.

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9. Problems in Implementation

9.1. Differences in Determining Defect Rate

• Experts may offer different assessments.

• This situation leads to different fault percentages being determined in the same accident.

9.2. Insurance Companies' Low Payment Policies

• Insurance companies are paying out based on an underestimation of the depreciation in value.

• Those who suffer damages are usually forced to file lawsuits.

9.3. Prolongation of the Trial

• Lawsuits regarding diminished property value can drag on for years.

• This situation leads to delayed compensation for damages.

10. Scope of Responsibility

10.1. Scope of Compensation

The scope of vehicle depreciation compensation is not limited solely to the decrease in the vehicle's value after an accident. In addition:

• Repair costs,

• Vehicle deprivation fee (for the period the vehicle cannot be used),

• The cost of a replacement vehicle may also be requested.
  

10.2. Criteria for Calculating Diminution in Value

The criteria are determined by the Insurance Information and Supervision Center (SBM):

• The age of the vehicle,

• Kilometers,

• Brand and model value,

• The nature of the damage,

• Previous damage records.

➡️ The amount determined based on these criteria is paid taking into account the degree of fault.

10.3. Interest and Court Costs

• In vehicle depreciation claims , interest accrues from the date of the accident.

• When a lawsuit is filed, the court costs and attorney fees are also charged to the defendant.

10.4. Statute of Limitations

• According to the Turkish Road Traffic Law , the statute of limitations for claims related to vehicle depreciation is two years , and in any case, ten years

• If it is related to a criminal case, a longer statute of limitations for criminal offenses applies.

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11. Lawyers' Defense Strategies

11.1. Objection to the Fault Rate

• By objecting to the exaggerated fault ratio of the opposing party, it may be possible to obtain a lower compensation.

11.2. Effect of Previous Damages

• If the vehicle has a history of previous damage, the depreciation claim for the new accident must be deducted from that damage.

11.3. Breaking the Causal Link

• It could be argued that the damage did not result directly from the accident.

11.4. Defenses from the Insurance Company's Perspective

• Defenses such as exceeding the policy coverage limit or the accident being outside the scope of the policy can be raised.

11.5. Statute of Limitations Objection

• If claims for vehicle depreciation are not filed within the prescribed time limit, a statute of limitations objection can be raised.

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12. Reform and Legislative Proposals

12.1. Clarification of Calculation Criteria

• The formulas used in calculating depreciation should be updated and better reflect market realities.

12.2. Standardization in Defect Detection

• To prevent differing conclusions among various experts, standard criteria should be established for determining the degree of fault.

12.3. Supervision of Insurance Companies

• To prevent insurance companies from arbitrarily rejecting or underpaying claims, the powers of the Insurance Arbitration Commission should be strengthened.

12.4. Fast Trial Mechanism

• Special and expedited resolution mechanisms should be established for vehicle depreciation claims.

12.5. Codification of Supreme Court Case Law

• The Supreme Court's established precedents regarding vehicle depreciation should be codified at the legislative level to eliminate ambiguity.

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13. Conclusion

Vehicle depreciation is one of the financial consequences of traffic accidents and is increasingly becoming the subject of lawsuits. Legal responsibility is concentrated on the driver, the owner, and the insurance company.

There are limited ways to evade this responsibility:

• Force majeure

• Gross negligence of a third party,

• Gross negligence of the injured party.

However, the burden of proof for these lies with the operator or responsible party.

The scope of liability is not limited solely to depreciation in value, but also includes items such as repair costs, vehicle loss compensation, and interest.

In conclusion, accurately determining fault in vehicle depreciation compensation , proving ways to avoid liability , and fairly defining the scope of liability are critically important for both ensuring justice and preventing victimization.