REPLACEMENT VEHICLE COST (COMPENSATION FOR LOSS OF VEHICLE)
REPLACEMENT VEHICLE COST (LOSS OF VEHICLE COMPENSATION)
This is the compensation requested from the party causing the damage, for the expenses incurred by providing a replacement vehicle to a person who is unable to use their vehicle due to an accident. The cost of the replacement vehicle will be calculated based on the model of the vehicle,
WHAT IS A REPLACEMENT VEHICLE?
A replacement vehicle is a vehicle provided by the insurance company to the insured person after an accident, if an expert objectively determines that the vehicle is unusable due to damage. The replacement vehicle must have similar characteristics to the insured vehicle. If the insurance company cannot provide a suitable replacement vehicle for the damaged vehicle, the person can rent a suitable vehicle and direct all necessary expenses to the insurance company (against an invoice). In cases of minor damage, a replacement vehicle is not provided as the vehicle is not unusable.
WHAT ARE THE REQUIREMENTS FOR BENEFITING FROM A REPLACEMENT VEHICLE?
Certain conditions must be met to benefit from the replacement vehicle service. These conditions are determined by insurance companies. General conditions include:
1- The damage resulting from an accident must be certified by an independent expert.
2- The damaged vehicle must not be repairable within twenty-four hours.
3- The damage must have occurred while the vehicle was in motion. The accident must not have occurred while the vehicle was stationary or parked.
4- The expert and the repair shop must agree on the terms. If they agree, the vehicle is sent to the repair shop. If they disagree, the matter goes to the insurance company.
5- If the vehicle is repaired before the given time, the replacement vehicle must be returned.
While this may vary depending on the insurance company, drivers with insurance can generally request a replacement vehicle once or twice a year.
The cost of the replacement vehicle is calculated by an expert based on market conditions.
After calculating the replacement vehicle cost, any expenses the driver would have incurred if they had used the vehicle (such as fuel costs and depreciation) are deducted from this calculation.
All highway and bridge tolls and fines incurred by the insured using the replacement vehicle are paid by the policyholder.
The replacement vehicle is generally provided until the damage is repaired.
While it varies depending on the insurance company, the replacement vehicle period can range from seven to fifteen days.
REPLACEMENT VEHICLE COMPENSATION
Replacement vehicle compensation refers to the loss incurred due to the damaged vehicle being unable to be driven on public roads. The party at fault in the accident (driver and/or owner) is responsible for the vehicle being unusable while it is undergoing repair. According to Article 49 of the Turkish Code of Obligations, compensation for damages is not sought from the at-fault party. The person whose vehicle was damaged can claim compensation from the other party or their insurance company.
Factors considered in determining the amount of compensation include: the vehicle's model and make, its specifications, how often the insured person used the vehicle, the vehicle's mileage to date, the repair time, the vehicle's value, the vehicle's registration date, and the amount to be paid for the replacement vehicle.
It is necessary to differentiate between commercial and non-commercial/private vehicles when calculating replacement vehicle compensation. Damage resulting from the use of a damaged vehicle for commercial purposes, such as taxis or buses, constitutes compensation for loss of earnings in commercial vehicle cases, and commercial earnings are taken into account when calculating compensation.
Compensation for loss of vehicle use is calculated by multiplying the daily cost of a replacement vehicle by the number of days the damaged vehicle is out of service due to repairs.
To file a lawsuit for vehicle depreciation, the competent court is the Commercial Court of First Instance if the lawsuit is against the insurance company, and the Civil Court of First Instance if the lawsuit is against the driver and/or owner. It is important to note that mediation must have been attempted before filing a lawsuit against the insurance company in the Commercial Court of First Instance.
The competent court for vehicle depreciation cases can be several locations: the court where the accident occurred, or the court in the place of residence of the injured party.
If no application is made to the insurance company within two years, the statute of limitations expires.
It is also important to remember that if the parties do not wish to go to court, they can apply to the Insurance Arbitration Board to resolve the dispute.
IN SHORT, THE COST OF A REPLACEMENT VEHICLE:
According to Article 49 of the Turkish Code of Obligations, the cost of a replacement vehicle is borne by the party at fault. The mileage of the vehicle sent for repair, the time required for repair, the frequency of use, and the cost of the replacement vehicle are important factors to consider in determining the compensation to be paid. These criteria require expertise. According to Article 266 of the Code of Civil Procedure, the judge may consult an expert witness in cases requiring technical knowledge outside of legal law, either at the request of one of the parties or on their own initiative. According to Article 50/2 of the Turkish Code of Obligations, if the amount of damage cannot be clearly proven, the judge may determine the amount to be compensated by considering the circumstances and using their own sense of equity. Finally, the damage suffered by the innocent party is compensated by the party found at fault.
HUSEYIN DOGAN
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