The first question of people injured in a traffic accident or who have lost a relative is “how much compensation can I get?” Traffic accident compensation is not a single amount but the total of several heads of claim, and each head is calculated using different criteria. The exact amount can only be determined by an actuarial expert after the disability and fault reports; in this article we explain the logic of the calculation and the heads of claim.
Heads of compensation that can be claimed after a traffic accident #
| Head of claim | Who claims it? | What is it calculated on? |
|---|---|---|
| Temporary incapacity for work | The injured person | Earnings lost during the recovery period |
| Permanent incapacity for work | A person with permanent disability | Disability rate, age, income, remaining working life |
| Medical and carer costs | The injured person | Invoices and documents; the need for a carer according to the report |
| Loss of support | Those deprived of the deceased’s support | The deceased’s income, the shares of the dependants and the duration of support |
| Funeral costs | Those who bore the costs | Documented costs |
| Non-pecuniary damages | The injured person; in the event of death, the relatives | The gravity of the incident, fault, the circumstances of the parties |
| Vehicle diminution in value and damage | The vehicle owner | Repair cost, age of the vehicle, mileage, damage history |
Legal basis: The operator’s liability is set out in Article 85 of the Highway Traffic Law No. 2918; the heads of loss of support and bodily harm are listed in Articles 53 and 54 of the Turkish Code of Obligations No. 6098.
Four criteria that determine the calculation #
1. Degree of fault #
Compensation is reduced in proportion to the injured party’s own fault. The fault assessment in the accident report form (kaza tespit tutanağı) is not binding on the court; the court obtains a separate fault report from a court expert. If the injured party is found 30% at fault, the calculated compensation is reduced by 30%. For this reason, the objection to the fault report is, in most files, the stage that affects the outcome most. Passengers in the vehicle do not bear fault attributable to the driver; however, in free courtesy transport (hatır taşıması) the judge may reduce the compensation.
2. Disability rate #
The permanent disability rate is determined, after the recovery process is complete, by a disability report obtained from the medical board of an authorised hospital. Compensation for permanent incapacity for work is directly linked to this rate: for the same person, compensation differs roughly threefold between 10% and 30% disability. It must always be checked under which regulation the report was issued and whether it corresponds to the date of the accident.
3. Income #
The calculation is based on the person’s net income on the date of the accident, updated for the following years. For people whose income cannot be documented, who do not work, or who are students or homemakers, the minimum wage is used. The passive period after retirement age is also calculated on the basis of the minimum wage.
4. Age and life expectancy #
The person’s remaining working life and life expectancy are determined using the current life table applied in the practice of the Court of Cassation (Yargıtay). For people injured at a young age with a high disability rate this period is long, so the compensation is also higher. In the event of death, for compensation for loss of support, the probable duration of the deceased’s support and the shares of the persons they supported are calculated separately.
A simplified example #
To see the logic of the calculation, consider an example that simplifies the real calculation: a 35-year-old person with a monthly net income of 30,000 TL suffers 20% permanent disability in an accident and is found to be 25% at fault.
- Annual net income: 30,000 × 12 = 360,000 TL
- Annual loss due to disability: 360,000 × 20% = 72,000 TL
- Remaining active period until retirement age (25 years in the example): 72,000 × 25 = 1,800,000 TL
- Fault reduction (25%): 1,800,000 × 75% = 1,350,000 TL
In the real calculation the court expert separately calculates the elapsed period from the date of the accident to the date of the report using actual minimum wage and income increases, and the subsequent future period using a set increase and discount method; the passive period, the deduction of any income paid by the Social Security Institution (SGK) and the insurance limit are also taken into account. The figure above is therefore only to illustrate the method and cannot be used in place of the amount in a real file.
Compensation for loss of support #
The spouse, children and parents deprived of the support of the person who died in the accident, as well as other relatives who are proven to have been supported in the specific case, may claim this compensation. Being an heir is not required; the criterion is the actual relationship of support. After deducting the share the deceased would have kept for themselves from their income, the remaining amount is divided among the persons supported; for children, the duration of support is generally determined according to their education. Relatives may also claim non-pecuniary damages in their own name.
How is the diminution in value of a vehicle calculated? #
A vehicle repaired after an accident finds buyers on the market at a lower value because of its damage record. The diminution in value is determined by a court expert as the difference between the market value immediately before the accident and the market value after repair, taking into account the age, mileage and make of the vehicle, the location and extent of the damage, and previous damage records. A vehicle owner who is not at fault or less at fault may claim the diminution in value from the other vehicle’s traffic insurance.
When assessing the insurance company’s offer #
A lawsuit cannot be filed without first making a written application to the other vehicle’s compulsory traffic insurance; if the company does not reply within 15 days or its offer is insufficient, the route to a lawsuit or to the Insurance Arbitration Commission (Sigorta Tahkim Komisyonu) opens. Before accepting the offer, check the following:
- Which disability report and which degree of fault the offer is based on
- Whether the minimum wage or actual income was used as income
- That non-pecuniary damages are not covered by compulsory traffic insurance and must be claimed separately from the driver and the vehicle operator
- That the right to apply to the driver and the vehicle operator for damage exceeding the insurance limit is reserved
If the amount paid is clearly below the actual damage, in the practice of the Court of Cassation a signed release (ibraname) may be treated only as a receipt for the amount paid, and the difference may be claimed through a lawsuit.
Policy limits and what can be claimed from which policy #
From whom compensation may be claimed depends as much on the scope of the policies as on liability for the accident. Three separate sources come into play:
| Source | What it covers | Limit |
|---|---|---|
| Compulsory traffic insurance | Bodily and material loss of third parties | Limited to the cover in the policy; does not include non-pecuniary damages |
| Optional financial liability (comprehensive add-on) | Loss exceeding the compulsory insurance limit | The additional limit written in the policy |
| Guarantee Account for compulsory motor liability | Bodily injury caused by uninsured, stolen or fleeing vehicles | The compulsory insurance limits |
The part exceeding the policy limit and non-pecuniary damages are claimed not from the insurer but from the operator, the driver and, where applicable, the vehicle owner. In most files, therefore, the application to the insurer and the action against those liable run side by side. Where the driver was under the influence, drove without a licence, or the accident was caused intentionally, the insurer has recourse against the insured for the amount it has paid.
Application to the insurer and the Arbitration Commission route #
No action may be brought without a written application to the compulsory traffic insurer; this is a condition of action. The process runs as follows:
- Application: A written application is made to the insurer with the accident report, hospital and disability reports, proof of income and bank details.
- Fifteen-day period: The company must conclude the application within fifteen working days. If no answer is given in time or the offer is inadequate, the court or arbitration route opens.
- Insurance Arbitration Commission: If the company is a member of the commission, the dispute may be taken to arbitration instead of court. Arbitration usually concludes faster; below a certain amount the arbitrator’s decision is final, above it an objection is available.
- Court action: If preferred, the action is brought before the commercial court of first instance (against the insurer) or the civil court of first instance (against the operator and driver).
The disability report attached to the application must be issued by an authorised health institution and drawn up under the current regulation; reports drawn up under the former regulation prolong the file.
Release and set-off: before you sign #
The document the insurer has you sign when paying is often in the nature of a release and contains the words “I waive all my rights and claims”. That signature may remove the possibility of claiming for loss that emerges later.
- Do not sign before treatment is complete: The disability rate becomes definite only once recovery has ended; a release signed early creates problems when permanent disability emerges.
- Add a partial payment note: Adding the note “received as a partial payment, my rights as to the excess being reserved” protects later claims.
- Check the set-off items: Payments made by social security and amounts received from the insurer are deducted from the compensation calculated in any later action. Which item has been set off should be recorded in writing.
In fatal accidents the release must be drawn up separately for each rightholder; one heir’s signature does not bind the others. Compensation for loss of support arises not from the status of heir but from the loss of support itself, and is therefore a personal right.
Limitation period #
Compensation claims arising from a traffic accident must be brought within 2 years of learning of the damage and the person liable, and in any case within 10 years of the date of the accident. If the accident also constitutes a crime (for example negligent injury or negligent homicide), the longer limitation period under the criminal law applies. For the first steps after an accident see our guide on what to do after a traffic accident, and for types of compensation, competent courts and costs see our Istanbul compensation lawyer page.
