Insurance Law

Insurance law is a critical legal field concerning the risks we encounter in every aspect of daily life. From traffic accidents and fire damages to health issues and workplace accidents, the legal relationships established with insurance companies and the disputes arising from these relations form the subject of insurance law.

What is Insurance Law?

Insurance law is the branch of law that regulates the legal relationships between insurers and insureds, defining the activities of insurance companies and the rights and obligations arising from insurance contracts. This branch of law forms the legal infrastructure of the insurance system, enabling individuals and businesses to protect themselves against future risks.

The primary sources of insurance law include the Turkish Commercial Code (TTK), the Insurance Law No. 5684, the Code of Obligations, and the General Insurance Conditions issued by the Ministry of Treasury and Finance. In particular, Articles 1401 to 1520 of the Turkish Commercial Code comprehensively regulate insurance contracts.

Insurance law, while considered within the scope of private law, also includes regulations that closely concern public order. Issues such as the supervision of the insurance sector and the financial adequacy of insurance companies are also within the scope of this branch of law.

Insurance Litigation

Insurance lawsuits arise when disputes concerning insurance contracts or activities are brought before a court. These typically involve:

· Failure of the insurance company to fulfill compensation obligations.
· Inadequate compensation payments.
· Disputes regarding the validity or interpretation of the insurance policy

Types of Insurance

Insurance is primarily divided into two main categories:

Non-Life Insurance (Damage Insurance):

Property Insurance: Covers damages to assets (Fire, Casco/Motor, Transport, Construction, Agriculture, Theft, etc.).

• Fire
• Casco/Motor
• Transport
• Construction
• Agriculture
• Theft
• Glass breakage insurance
• Machinery Breakdown
• Electronic Device

Sorumluluk Sigortaları: Sigortalının üçüncü kişilere verdiği zararlardan doğan sorumluluğunu karşılayan sigorta türleridir:

• Compulsory motor insurance (Traffic Insurance)
• Optional liability insurance
• Professional liability insurance (for doctors, lawyers, architects, etc.)
• Employer’s liability insurance
• Product liability insurance

Life Insurance: These are types of insurance that protect a person’s life, health, or physical integrity.

• Life
• Health
• Personal Accident
• Death Insurance
• Private Pension

The Insurance Contract (Policy)

An insurance contract is an agreement where the insurer, in exchange for a premium, provides coverage against risks that may cause financial loss or events related to human life.

An insurance contract is a type of contract that must be in writing. If an insurance contract is not in writing, it is considered invalid. The written document of the insurance contract is called a “policy”.

Key Elements

• Insurer (Company)
• Policyholder (Applicant)
• Insured (Beneficiary)
• Beneficiary:
• Premium (Price)
• Sum Insured (Coverage limit)
• Risk (Riziko).

Sigorta Sözleşmesi Yükümlülükleri Nelerdir?

The obligations arising from an insurance contract are important for both the insurer and the insured.

Insurer’s Obligations:

• To prepare the insurance policy and deliver it to the insured.
• To provide insurance coverage.
• Paying the insurance amount in the event of the risk occurring.
• Sigorta ettirene bilgilendirme ve aydınlatma yükümlülüğünü yerine getirmek
• To fulfill the obligation to inform and enlighten the policyholder.

Policyholder’s Obligations:

• Paying premiums on time
• Providing accurate and complete information when drawing up the contract.
• Reporting situations that increase the risk.
• Taking the necessary precautions to prevent the risk from materializing.
• Report the damage to the insurer immediately.

What are the insured’s responsibilities?

Even if the insured is not a party to the insurance contract, they are still subject to certain obligations:

• Notification Obligation: The insured is obligated to immediately notify the insurance company of the occurrence of the risk. Failure to fulfill this notification obligation may eliminate or reduce the insurance company’s liability.
• Protection and Rescue Obligation: The insured is obligated to take reasonable measures to prevent further damage and minimize losses in the event of an incident. For example, calling the fire department in case of a fire and taking necessary safety precautions in case of a traffic accident fall under this obligation.
• Documentation Obligation: When claiming insurance compensation for damages, the insured is obligated to prove the occurrence and amount of the damage with supporting documentation.
• Obligation to Cooperate: The insured is obligated to cooperate with the insurer during the claims assessment, including providing necessary information and documents and allowing inspections when required.

Which court handles insurance law cases?

The court with jurisdiction in insurance cases varies depending on the subject matter of the case, the status of the parties, and the nature of the dispute.

Consumer Courts: If one of the parties to an insurance contract is a consumer and the insurance contract is not made for commercial or professional purposes, the competent court is the consumer court. Disputes arising from insurance contracts made for personal needs, such as individual car insurance, home insurance, and health insurance, are heard in consumer courts.

Commercial Courts of First Instance: Since insurance contracts are regulated in the Turkish Commercial Code, disputes arising from insurance contracts made by commercial enterprises are considered absolute commercial cases and are heard in commercial courts of first instance.

Civil Courts of First Instance: Compensation cases arising from torts fall under the jurisdiction of civil courts of first instance. For example, a compensation lawsuit filed by a person injured in a traffic accident against both the negligent party and the insurance company will be heard in a civil court of first instance.

In which court should a lawsuit be filed against an insurance company?

The court that will hear lawsuits filed against insurance companies is determined by the nature of the case, as mentioned above. However, there are important regulations regarding the competent court.

In cases arising from consumer transactions, the consumer court in the consumer’s place of residence has jurisdiction. This regulation was introduced to protect consumers and allows them to file lawsuits in their own place of residence.

In commercial cases, general jurisdiction rules apply. Accordingly, the court located where the defendant insurance company’s headquarters are situated has jurisdiction. However, the parties may agree on a different jurisdiction agreement in the contract.

In tort cases, both the court where the damage occurred and the court of the defendant’s place of residence have jurisdiction.

Which Cases Fall Under Insurance Law?

The main types of lawsuits that can be filed under insurance law are as follows:

• Insurance Compensation Claims: These are lawsuits in which the insurance company is asked to pay compensation in the event of an insurance risk occurring.
• Premium Refund Cases: These are lawsuits in which the return of premiums paid is sought in the event of contract termination or cancellation.
• Insurance Contract Cancellation Lawsuits: These are lawsuits where the cancellation of the contract is requested due to defects in consent such as deception or coercion during its formation.
• Insurance Contract Nullity Determination Lawsuits: These are lawsuits filed to determine that the contract is invalid.
• Insurance Coverage Determination Cases: These are lawsuits filed to determine whether a specific damage is covered by insurance.
• Premium Receipt Lawsuits: These are lawsuits filed by insurance companies to collect unpaid premiums.
• Subrogation Actions: These are lawsuits in which the insurance company seeks to recover the compensation it paid to the insured from the original liable party.

Statute of Limitations in Insurance Cases

In insurance law, limitation periods are specifically regulated and are quite short.

Two-Year Statute of Limitations: According to the Turkish Commercial Code, claims arising from insurance contracts are subject to a two-year statute of limitations. This period begins from the date the claim becomes due.

For example, if a lawsuit is not filed within two years of the date of the damage, the insurance claim becomes time-barred. The same period applies to premium receivables.

Ten-Year Statute of Limitations: In life insurance and insurance policies based on a person’s life, as well as disability and health insurance, a ten-year statute of limitations applies to insurance compensation claims.

Interruption of the Statute of Limitations: Filing a lawsuit, initiating enforcement proceedings, or a debtor’s written acknowledgment of the debt interrupts the statute of limitations. With this interruption, the statute of limitations begins to run again.

Due to the very short statutes of limitations, it is extremely important to initiate legal proceedings without delay in the event of damages.

Who is an insurance lawyer?

Insurance lawyers are attorneys specializing in insurance law who provide legal advice and representation in disputes arising from insurance contracts and insurance activities.

Given the technical nature of insurance law, its specific regulations, and the need for industry-specific knowledge, working with lawyers specializing in this area is critical to the success of the litigation process.

Given the technical nature of insurance law, its specific regulations, and the need for industry-specific knowledge, working with lawyers specializing in this area is critical to the success of the litigation process.

What does an insurance lawyer do?

The services offered by an insurance lawyer cover a wide range:

Consulting Services:

• Review and evaluation of insurance contracts.
• Determining the scope of coverage
• Information on what to do in case of damage.
• Advice regarding premium payment obligations.

Litigation and Enforcement Proceedings:

• Filing and pursuing insurance compensation claims.
• Defending against the insurance company’s objections.
• Monitoring expert examinations
• Initiating and monitoring debt collection proceedings.

Damage Management:

• Reporting the damage properly.
• Gathering and submitting the necessary documents.
• Preparation of damage assessment reports.
• Negotiations with the insurance company.

Compromise and Alternative Dispute Resolution Methods:

• Managing negotiation processes with the insurance company.
• Representation in mediation processes
• Preparation of settlement protocols

Recourse Procedures:

• Defense against insurance company’s subrogation claims
• Pursuing recourse actions against third parties