TOTAL LOSS RECORD – SEVERELY DAMAGED RECORD

VEHICLE TOTAL LOSS RECORD

The word "pert" literally means devaluation or damage. In an insurance context, it refers to a vehicle that is completely or severely damaged.

A total loss record refers to a record of damage to the entire vehicle resulting from a traffic accident.

A vehicle with a salvage title is deemed unsuitable for road use because it endangers people's lives and property, and therefore, the salvage vehicle is removed from traffic. This is recorded on the vehicle's license plate.

For a vehicle to be declared a total loss, it must have sustained damage of seventy percent or more. The fact that the cost of repairs is close to the insured value also indicates that the vehicle is a total loss.

Vehicles registered as damaged fall into the hazardous vehicle category.

If a vehicle sustains damage to the point of being totaled, the policyholder must first notify the insurance company within five working days. Following this, an expert assessment of the damaged vehicle should be requested. If the owner of the damaged vehicle fails to notify the insurance company within this five-working-day period, the insurance company will no longer be responsible.

If a vehicle is declared a total loss, an application must be submitted within the legally prescribed timeframe. Following this, insurance companies must make the necessary calculations and then fully pay the insured party.

Damage to a vehicle that is totaled in a traffic accident is not covered by traffic insurance. Traffic insurance only covers the costs incurred as a result of the other party's vehicle being totaled.

SALVAGE VEHICLE PROCEDURES

There are certain documents that need to be submitted to the insurance company. These are:

• A report prepared as a result of a traffic accident.
• A report on whether or not alcohol was consumed before the traffic accident.
• Photographs showing the damage to the vehicle as a result of a traffic accident.
• A copy of the vehicle registration certificate.
• A photocopy of the driver's license of the driver involved in the traffic accident, and finally, receipts for the insurance premiums paid.

Apart from these documents, different insurance companies may have different requirements.

TOTAL LOSS VEHICLE PAYMENT

If the expert report states that the vehicle is a total loss, the insurance company must pay the insured the amount specified in the insurance policy. The payment to the insured will be equal to the current market value of the vehicle and will not exceed the amount stated in the insurance policy.

The amount of compensation must be determined within ten days of the expert report being submitted. The determined compensation must be paid to the insured within forty-five days of the notification of the damage.

If the investigations and examinations are not completed even three months after the policyholder reports the damage, an advance payment of up to fifty percent of the determined damage amount should be given to the policyholder, taking into account the preliminary expert report to be prepared by agreement between the parties or, if the parties cannot reach an agreement, by the court.

If insurance companies underpay less than the actual value of a customer's vehicle, the difference, known as the total loss difference, must be claimed by the vehicle owner from the insurance company.

Once the policyholder receives payment, all rights to the vehicle pass to the insurance company.

THE DIFFERENCE BETWEEN SEVERELY DAMAGED AND TOTAL LOSS RECORDED

A "total loss" record indicates that a vehicle is 70% or more damaged, or unusable. A "severe damage" record indicates that the damage is less than 70%. The authority responsible for determining severe damage to a vehicle is usually an expert appraisal service. Once the financial losses of a vehicle determined to be severely damaged as a result of a traffic accident are covered, the vehicle can be put back on the road, meaning it can be used again.

A vehicle can be severely damaged not only as a result of a traffic accident, but also due to natural disasters or other reasons.

If the vehicle has insurance coverage as part of the total loss claim, the market value of the vehicle and the cost of repairs are compared. If the amount to be compensated for the damage matches the market value of the vehicle, the market value of the vehicle is paid.

In insurance claims for a vehicle found to have suffered significant damage, the damage will be covered. The insurance payout will cover the damage to the vehicle. However, the market value of the vehicle may not be paid for in such cases. This can vary depending on the insurance contract.

In both types of damage, reports prepared following the traffic accident, accident records, and accident information are registered in the Tramer system.

Another difference between total loss (salvage) and damage (damage) records is that insurance companies provide comprehensive insurance policies for vehicles with damage records, but they may impose limits on the coverage of comprehensive insurance policies for vehicles with total loss records.

TAYYIP TASKAN/HUSEIN DOGAN