Insurance Lawyer and Insurance Law in Istanbul
Disputes over rejected claims and underpayment in motor own-damage, traffic, life, health and home insurance; diminution in value claims, applications to the Insurance Arbitration Commission, the consumer arbitration committee and litigation.
An insurance company’s rejection letter or underpayment is not the last word. When the special conditions of the policy, the loss adjuster’s report and the date of the application to the company are examined, it often turns out that the ground for rejection is inconsistent with the law or the policy. However, before going to court or arbitration, it is mandatory to apply to the company in writing and wait for a certain period; limitation periods also vary with the type of policy and can be short.
On this page you will find the route to follow in motor own-damage, traffic, life and health insurance disputes; the conditions for applying to the Insurance Arbitration Commission, the 2026 application fees and thresholds for objection; the consumer arbitration committee and court options; limitation periods; the current method for calculating diminution in value; and answers to frequently asked questions.
The first step in an insurance dispute: a written application to the company
Whatever the type of insurance, before going to arbitration or court against the insurance company, a written application must be made to the company, and it must be documented that the claim was rejected or went unanswered. The waiting period differs according to the type of insurance:
- Compulsory motor third-party liability insurance (ZMSS): Before bringing proceedings or going to arbitration, the injured party applies in writing to the insurance company of the other vehicle. If the company does not reply in writing within 15 days of the application, or the reply does not meet the claim, the route to court or arbitration opens (Highway Traffic Law, art. 97). Proceedings brought without this application may be dismissed on procedural grounds.
- Motor own-damage (kasko), life, health, home and other insurance: To go to the Insurance Arbitration Commission, an application must have been made to the company and the claim must have been rejected in whole or in part; it is also sufficient that the company has not replied in writing within 15 working days of the application (Insurance Law, art. 30/13).
Making the application by registered post with acknowledgement of receipt, by registered electronic mail (KEP) or with a reference number obtained from the company’s claims system, rather than by ordinary e-mail, makes it easier to prove the date on which the period started. The policy number, claim file number, amount claimed and supporting documents should be attached to the application.
When must the company pay? In traffic insurance, the insurer pays the amount within cover within 8 working days after receiving the documents listed in the general conditions (Highway Traffic Law, art. 99). In motor own-damage and other insurance, the indemnity falls due once the company’s investigations are complete and in any event 45 days after notification of the loss; in personal insurance such as life and personal accident insurance, this period is 15 days. If the investigation is not completed within 3 months, the company must pay at least 50% of the assessed loss as an advance (Turkish Commercial Code, art. 1427).
Routes of recourse: the company, arbitration, the arbitration committee and the courts
After the company’s rejection there are four different routes. Which one to choose depends on the amount claimed, whether the insured is a consumer and how technical the dispute is. If the same dispute has been taken to the consumer arbitration committee or to court, it can no longer be brought before the Insurance Arbitration Commission (Insurance Law, art. 30/14); the route must therefore be chosen correctly from the outset.
| Route | Who, and in what situation | Decision time | 2026 cost | Challenge to the decision |
|---|---|---|---|---|
| Application to the insurance company | A precondition for everyone | Reply within 15 days for ZMSS and within 15 working days for other insurance | None | In case of rejection or underpayment, arbitration, the arbitration committee or court proceedings |
| Insurance Arbitration Commission | Policyholder, insured, beneficiary and injured party; companies that are members of the arbitration system, and in compulsory insurance also non-member companies and the Guarantee Fund | At most 4 months from the appointment of the arbitrator | 600 TL – 1,750 TL depending on the amount claimed; 1.8% for claims over 85,001 TL | Final below 35,000 TL; objection within 10 days for 35,000 TL and above; appeal on points of law for amounts exceeding 383,000 TL |
| Consumer arbitration committee | A consumer who took out the policy for personal purposes; disputes below 186,000 TL | Varies depending on the review of the application | Free of charge | Objection to the consumer court within 2 weeks of service |
| Court | The consumer court for consumer policies; the commercial court of first instance for business policies and commercial claims against the insurance company; as a rule, the civil court of first instance if the driver and the vehicle operator are also defendants | 1.5–3 years in most files, with an expert examination | Filing fee of 732 TL plus proportional fee; proceedings brought by consumers are exempt from fees | Appeal to the regional court, and appeal on points of law in files exceeding the monetary threshold |
In proceedings brought by a consumer, for disputes outside the jurisdiction of the consumer arbitration committee, applying to a mediator before bringing proceedings is a precondition for the action (Consumer Protection Law, art. 73/A). Mediation is also required as a precondition in commercial monetary claims brought against an insurance company (Turkish Commercial Code, art. 5/A). In traffic accident files, how the art. 97 application under the Highway Traffic Law and the mediation requirement apply together may vary depending on the parties to the file, so both requirements should be checked before bringing proceedings. Mediation is not required for the Insurance Arbitration Commission route.
Applying to the Insurance Arbitration Commission step by step
- Written application to the company and proof of rejection: The rejection letter, the receipt for the underpayment or proof of the period that passed without a reply is prepared.
- Application form and documents: The application is made online through the Commission’s website. The heads of claim and their amounts must be stated clearly; as a rule, arbitrators decide solely on the documents in the file, and no hearing is held.
- Payment of the application fee: The fee is determined by the amount claimed (see the table below). The fee must be paid on the same day.
- Review by the rapporteur: The application is first reviewed by a rapporteur within 15 days at most; files that cannot be resolved are sent to an arbitrator.
- Arbitrator or arbitral panel: As a rule, files below 122,000 TL are decided by a sole arbitrator, and those of 122,000 TL and above by a panel of at least three arbitrators. An expert examination is ordered if necessary.
- Decision and objection: Arbitrators decide within 4 months at most of their appointment; this period may be extended with the written consent of the parties. An objection to decisions open to objection is lodged within 10 days of notification; the objection panel decides within 2 months.
- Collection: If a final decision is not paid, it is enforced through enforcement proceedings.
| Amount claimed (in dispute) | 2026 application fee |
|---|---|
| 0 – 8,500 TL | 600 TL |
| 8,501 – 17,000 TL | 1,200 TL |
| 17,001 – 85,000 TL | 1,750 TL |
| 85,001 TL and above | 1.8% of the amount claimed (at least 1,750 TL) |
This tariff has applied since 16 July 2026; the same fee is charged for objections. The monetary thresholds have been as follows since 22 January 2026: in disputes below 35,000 TL the arbitral decision is final; in disputes of 35,000 TL and above an objection is available; for an appeal on points of law against the decision given on objection, the amount in dispute must exceed 383,000 TL. Since March 2026, these thresholds have been determined by the date of application rather than the date of the decision. Even in files below the threshold, the law allows an appeal on points of law for serious procedural errors, such as a decision given after the time limit has expired or a decision exceeding what was claimed.
The attorney fee awarded against a party whose claim is rejected in whole or in part is one fifth of the fee in the Minimum Attorney Fee Tariff (art. 30/17). This low attorney fee risk makes it important to set the amount claimed realistically.
Motor own-damage insurer refuses to pay: the most common grounds for rejection
In motor own-damage insurance, the insurance company bears the burden of proving that the risk falls outside the cover (Turkish Commercial Code, art. 1409). In practice, the most common grounds for rejection and underpayment are:
- Alcohol and driving without a licence: In rejections based on policy conditions, the effect of the alcohol or the lack of a licence on how the accident occurred (the causal link) is examined separately; an alcohol report alone does not determine the outcome in every file.
- Allegation that the incident did not happen as reported: In rejections on the ground that the damage is inconsistent with the account of the accident, a technical expert examination is decisive.
- Total loss (pert) and market value: Setting the vehicle’s market value too low is the most common cause of underpayment; it should be compared with comparable sale listings and an independent appraisal.
- Breach of the duty of disclosure: An allegation that an important matter was not disclosed when the policy was taken out (such as commercial use or driver information).
- Deductible, underinsurance and authorised repair shop conditions: These provisions in the policy’s special conditions directly reduce the payment.
Under the Regulation on the Appointment of Insurance Loss Adjusters, which entered into force in 2026, major damage and total loss assessments in motor own-damage insurance, and in traffic insurance losses exceeding a certain amount, are carried out by loss adjusters appointed in rotation through the EKSİST system. The insured or the policyholder may also object to the loss adjuster’s report within 3 working days of notification that the report has been entered into the system; upon objection, a new loss adjuster and, if necessary, an arbitrating loss adjuster is appointed. Even if this short period is missed, the right to arbitration and litigation remains, but an objection strengthens the file at an early stage.
Traffic insurance: property damage, diminution in value and the Guarantee Fund
The compulsory traffic insurance of the vehicle at fault covers, within the policy limits, the damage to the other party’s vehicle, diminution in value, bodily injury and, in case of death, compensation for loss of support. The minimum cover for 2026 is 400,000 TL per vehicle for property damage and 3,600,000 TL per person for disability and death; the limit in force on the date of the accident applies. For loss exceeding the limit, separate proceedings are brought against the driver and the vehicle operator. We explain how compensation for bodily injury is calculated in our article on calculating traffic accident compensation, and the evidence to collect at the time of the accident in our article on what to do after a traffic accident.
Current position on diminution in value: Diminution in value used to be calculated using the formula annexed to the general conditions of traffic insurance. In 2020 the Constitutional Court annulled the reference to the “general conditions” in art. 90 of the Highway Traffic Law, and in 2022 it annulled the provisions added to the law in 2021 that again tied the calculation to the general conditions. Today, diminution in value is determined through an expert examination on the basis of the actual difference between the vehicle’s undamaged second-hand market value before the accident and its market value after repair. The 2026 loss adjuster regulation also provides that the loss adjuster appointed in traffic insurance calculates diminution in value in the same report as the damage, according to the principle of actual loss. A payment by the company based on a low, formula-like calculation does not close the route to arbitration or litigation for the balance.
Guarantee Fund: If the vehicle at fault is uninsured, its driver cannot be identified or the vehicle is stolen, an application is made to the Guarantee Fund (Güvence Hesabı) for bodily injury; in case of the insurance company’s bankruptcy or the revocation of its licence, property damage is also covered (Insurance Law, art. 14). Vehicle damage caused by an uninsured vehicle, however, is not covered by the Guarantee Fund; proceedings for this loss are brought against the driver and the vehicle operator. Disputes with the Guarantee Fund may also be taken to the Insurance Arbitration Commission.
When life or health insurance is not paid
In life, credit life, personal accident and health insurance, most rejections rely on the ground that “a pre-existing illness was not disclosed”. The law protects the insured on this point:
- The insured is only obliged to disclose important matters that they knew or ought to have known when the policy was taken out; if the company provided a written questionnaire, the insured cannot be held responsible for matters outside it (Turkish Commercial Code, arts. 1435-1436).
- If the company does not withdraw from the contract within 15 days of learning of the non-disclosure, it loses this right (Turkish Commercial Code, art. 1440).
- If the breach of disclosure comes to light after the risk has materialised, in case of negligence the sum insured cannot be refused entirely; it is reduced according to the degree of fault. The obligation to pay is removed entirely only if there was intent and there is a link between the undisclosed matter and the death or illness (Turkish Commercial Code, art. 1439).
The rejection letter should therefore be examined to see which illness was treated as “known” on the basis of which dated medical record, and whether that illness is connected with the death or the condition treated. In credit life insurance, the beneficiary is often the bank; since non-payment by the company leaves the heirs facing the loan debt, the route to be taken against the bank and the insurance company should be assessed together.
Limitation periods by type of insurance
| Insurance / claim | Limitation period | Legal basis |
|---|---|---|
| Motor own-damage, home, business premises, life, health (claim by the insured against their own company) | 2 years from the date the claim falls due; in any event 6 years from the materialisation of the risk | Turkish Commercial Code, art. 1420 |
| Compulsory traffic insurance (property damage claim by the injured party) | 2 years from learning of the loss and the person liable; in any event 10 years from the date of the accident | Highway Traffic Law, art. 109/1 |
| Where the accident is also an offence (injury, death) | The longer limitation period for prosecution under criminal law; in fatal accidents this period is 15 years in most files | Highway Traffic Law, art. 109/2 |
| Voluntary excess liability insurance (İMM) | The same periods as traffic insurance | Highway Traffic Law, arts. 100, 109 |
| Other liability insurance (claim by the injured party against the insurer) | 10 years from the insured event | Turkish Commercial Code, art. 1482 |
| Recourse between those liable for compensation | 2 years from completion of payment and learning of the person against whom recourse lies | Highway Traffic Law, art. 109/4 |
If the limitation period is interrupted against the driver or the vehicle operator, it is also deemed interrupted against the insurer (Highway Traffic Law, art. 109/3). Applying to the company, however, does not by itself stop the limitation period; if the period is about to expire, an arbitration application or proceedings should be filed without delay. You can make a preliminary assessment of your own file with the time limit and limitation period checker.
Underpayment and release
The most common situation is that the company pays a certain amount and closes the file. Accepting a partial payment does not by itself remove the right to claim the balance. In traffic accidents, agreements on the amount of compensation that are clearly inadequate may be set aside if this is requested within 2 years of the date they were made (Highway Traffic Law, art. 111). It is advisable to read in advance any statement such as “I have no further claims” in the document to be signed when receiving payment and, if possible, to accept the payment under reservation. The effect of a release (ibraname) in bodily injury cases is discussed separately on our compensation law page.
Competent court in Istanbul
Proceedings arising from a traffic accident may be brought in the court for the place where the insurance company’s branch or the agency that issued the policy is located, or where the accident occurred (Highway Traffic Law, art. 110). Consumer proceedings may also be brought in the consumer court for the consumer’s place of residence (Consumer Protection Law, art. 73). You can find the courthouse serving your district on our district pages. An application to the Insurance Arbitration Commission, on the other hand, is made online and is therefore independent of where you are.
Our work in insurance law
- Disputes over rejected claims and underpayment in motor own-damage insurance; objections to market value in total loss (pert) cases
- Claims against traffic insurance for vehicle damage, diminution in value, replacement vehicle and loss of earnings
- Applications against rejection decisions in life, credit life, personal accident and health insurance
- Disputes over home, business premises, fire, flood and earthquake (DASK, compulsory earthquake insurance) losses
- Applications to the Insurance Arbitration Commission, and the objection and appeal stages
- Applications to the Guarantee Fund and to the consumer arbitration committee
- Defence in recourse actions brought by insurers
Documents required for the application
- The policy and its special conditions (exclusions, deductible and underinsurance provisions)
- The notification of loss, the written application to the company and proof of sending
- The company’s rejection letter, payment receipt or proof of the period that passed without a reply
- The loss adjuster’s report and, if any, the report prepared following an objection
- The accident report or police report, fire brigade report, photographs and camera footage
- Repair invoices, comparable sale listings, diminution in value appraisal
- For life and health insurance: medical records, death certificate, certificate of inheritance
The information on this page is general in nature and has been prepared on the basis of the 2026 legislation and the fees and monetary thresholds announced by the Insurance Arbitration Commission. Fees and thresholds may change during the year; policy conditions and time limits must be examined separately in each file. You are advised to consult a lawyer about your specific situation.
