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LOSS OF VALUE

August 26, 2022

VEHICLE DEPRECIATION IN GENERAL A vehicle damaged in a traffic accident is taken to a service center for repair. As a result, the vehicle is reclassified as a used vehicle. This reclassification makes it difficult to sell, reducing its value and price. Therefore, to alleviate the hardship experienced by vehicle owners, compensation for vehicle depreciation is provided. For this compensation to be awarded, the vehicle owner must not be at fault in the traffic accident. The purpose of this compensation is to compensate the party at fault for the damage suffered by the injured party, thereby mitigating the vehicle owner's losses. Factors considered when calculating vehicle depreciation include: the model and make of the vehicle involved in the accident, the year of manufacture, the date the vehicle was first registered, the mileage at the time of the accident, the market value of similar vehicles at the time of the accident, whether the vehicle has been damaged before that date and, if so, the nature of that damage, and finally, any previous painting work and replaced parts. A calculation is made by checking these factors. HOW IS VEHICLE DEPRECIATION CALCULATED? To receive vehicle depreciation compensation, a claim proportional to the fault of the at-fault party is required. The depreciation calculation can be performed by an independent expert or appraisal institution. Following a traffic accident, a petition requesting vehicle depreciation compensation is submitted to the insurance company of the at-fault party. If the insurance company rejects the petition, an application can be made to the Insurance Arbitration Board, or a lawsuit can be filed directly without applying to the Insurance Arbitration Board. If a lawsuit is filed directly without first applying to the Insurance Arbitration Board, the Civil Commercial Court or an expert appointed by the Civil Commercial Court will request a calculation of the depreciation in value. There are two formulas for calculating vehicle depreciation: Base depreciation = Market value of the vehicle x nineteen percent; Total depreciation = Base depreciation x damage extent coefficient x mileage coefficient prior to the accident. Vehicles for which vehicle depreciation cannot be claimed: Wheeled and armored riot control vehicles, municipal buses (public transport vehicles), special vehicles used for street sweeping, and fire trucks. Finally, owners of vehicles with foreign license plates who sustain damage in a traffic accident in Turkey cannot claim vehicle depreciation. CONDITIONS FOR VEHICLE DEPRECIATION CLAIMS : 1. The traffic accident must be a two-vehicle accident. For example, a vehicle that crashes into a wall cannot claim compensation for its market value. 2. Another condition for claiming vehicle depreciation is that the vehicle involved in the accident must not be 100% at fault. 3. The vehicle must have sustained damage as a result of the accident, and this damage must be repaired. 4. The final condition for claiming vehicle depreciation is that the repaired parts must not have been repaired in a previous traffic accident. It is important to remember the statute of limitations. There is a two-year statute of limitations for applying for vehicle depreciation compensation. If the application is not made within this period, the person cannot use this right again and loses their right. PERSONS TO WHOM COMPENSATION FOR VEHICLE DEPRECIATION CAN BE CLAIMED: The owner of the other vehicle involved in the accident, the insurance company that issued the Compulsory Financial Liability Insurance policy, and the driver of the vehicle that caused the accident are jointly and severally liable. The person concerned has the right to claim compensation from all three. If the vehicle owner and the driver are obliged to pay this amount, they have the right to recourse under their own insurance policies. CONCLUSION: Damages resulting from traffic accidents are repaired in service centers and these damages are covered by insurance companies in a standard manner. However, even if these vehicles are repaired and their damages are covered, a loss occurs because these vehicles have been involved in a traffic accident. This loss is the difference between the market value of the vehicle before the accident and its second-hand market value after the accident, even if the repairs are completed. Insurance companies do not cover vehicle depreciation unless it is claimed. The purpose of depreciation compensation is essentially to pay compensation to the innocent party by the party at fault in a vehicle accident, to compensate for the damages suffered; in other words, the aim is to remedy the resulting harm.

#Arbitration , car , vehicle , lawsuit , depreciation , comprehensive insurance , accident , insurance , insurance arbitration commission , insurance arbitration board , compensation , traffic , traffic accident , accident report

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