Turkey: Call for limits on third-party auto premium rates

Source: Middle East Insurance Review | Jul 2015

The Confederation of Turkish Tradesmen and Craftsmen (TESK) has urged the government to set maximum premium rates for compulsory third-party motor insurance, arguing that premium rates are too high.

“Our artisans must be freed from the arbitrariness of insurance companies,” TESK Chairman Bendevi Palandoken said in a statement. Premium rates have been liberalised since 1 January 2014, with insurers free to set their own rates.

The comments were made days after the government had revamped compulsory third-party auto insurance regulations, with the changes taking effect on the first of June.

New regulations propose to clarify “medical expenses coverage”, “permanent disability coverage” and other terms. For example, medical expenses coverage now includes all treatment costs incurred, including the costs of prosthetics. For property damage coverage, the new rules set out how depreciation and replacement parts for damaged vehicles are to be handled.

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