RESPONSIBILITIES OF INSURANCE COMPANIES IN TRAFFIC ACCIDENTS
INSURANCE COMPANIES' RESPONSIBILITIES IN TRAFFIC ACCIDENTS
To discuss the responsibility of insurance companies in traffic accidents, it's necessary to first mention Compulsory Motor Vehicle Liability Insurance, or commonly known as Traffic Insurance. The principles of traffic insurance are determined by the Regulation on Compulsory Motor Vehicle Liability Insurance and are legally mandatory for all vehicle owners. It refers to the coverage of damages and treatment costs incurred in accidents on highways by the insurance company. A designated expert conducts an inspection to determine fault percentages, and an amount is determined according to the policy limit of the insured. The contracts made between vehicle owners and insurance companies for this process constitute Traffic Insurance. As a result of this contract, insurance companies are obligated to cover the damages and losses for which they are responsible after an accident.
INSURANCE COMPANY RESPONSIBILITIES
Although the responsibilities of insurance companies should be evaluated on a case-by-case basis, they can be broadly categorized into three main areas: covering death, bodily injuries or medical expenses, and material damages resulting from an accident.
In the event of death due to an accident, the insurance company is responsible for covering funeral expenses and the losses of those deprived of the deceased's support.
Bodily injuries generally include medical expenses, treatment and caregiver costs, loss of earnings, and losses arising from a reduction in the individual's ability to work as a result of the accident.
Material damage refers to the decrease in the value of the vehicle due to damage and the losses arising from the vehicle being unusable due to the accident. For example, insurance companies provide policyholders with a short-term, free rental car for the period during which their vehicle is undergoing expert inspection and repairs after an accident. This is a way to compensate for the damage caused by the vehicle being unusable due to the accident.
Insurance companies are obligated to cover the damages arising from these three situations in accidents; however, there are also some situations where insurance companies may refuse to make payments.
Situations Not Covered by Traffic Insurance
: • Firstly, insurance companies cover the damages of the other party involved in the accident, not the insured vehicle owner. While they are not obligated to cover the vehicle owner's damages, the process generally works so that both parties involved in the accident are mutually compensated by the insurance company, as traffic insurance is mandatory.
• Since the insurance company covers the damages of the other party, there must be a third party involved besides the insurance company and the insured. This means that if the accident occurs between two vehicles belonging to the same person, it is not covered by traffic insurance.
• The insurer is relieved of liability if it can prove that the accident was caused by force majeure, the gross negligence of the injured party, or a third party. (Traffic Law, Article 86)
• Damages sustained by a vehicle during a motor vehicle race cannot be claimed from the insurance company.
• Damages to goods transported in the vehicle are also not covered.
• If an explosive device is being transported in the vehicle in addition to spare fuel for the tank, and damage occurs as a result, this is not covered by traffic insurance.
• If an accident occurs while the vehicle is at a service center for repairs, the insurance company is not liable; however, the service center is responsible in this case.
• Damage to vehicles used in terrorist acts,
• Accidents caused by stolen or hijacked vehicles,
• Non-pecuniary damages are also not covered by traffic insurance.
If none of the above-mentioned non-coverage situations are present in the specific case, insurance companies are obligated to cover the damages as they are liable. Insurance companies are obligated to issue policies in accordance with the law; contracts that increase or decrease the liability of vehicle owners cannot be made. They are also obligated to cover the death, medical expenses, and material vehicle damages of the injured parties in proportions consistent with the law. If the insurance company refuses to pay the damage or makes an insufficient payment despite the absence of situations not covered by traffic insurance, vehicle owners can pursue legal action.
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