Turkey: Insurance Is Not A Gamble…

Insurance is a contract by which the insurer commits to indemnify in case there is a risk of damage for the insured's interest that has actual cash value or because of the events that happen in the insured's life in return for the payment of premium. The contracts of insurance are divided into two categories as Life and Non-Life insurance contracts which are regulated in general in the Turkish Commercial Code and particularly in the Insurance Law. The major features of insurance contracts in the Turkish Law are;

  • Insurance contract is a bilateral contract which causes mutual obligations to the both parties,
  • Insurance contract is a fixed term contract,
  • Insurance contract is based on the utmost good faith principle,
  • Insurance contract is an aleatory contract,
  • Insurance contract brings about permanent relationship and consequences.

There are some Obligations of the Insured which are essential.

1. Announcement responsibility:

  • At the time of the contract: While the contract is being drawn up, the insured person has to indicate all the terms to the insurer. If the insured keeps silence though he is asked or does not tell the truth, the insurer who does not knowp the truth may renege on the contract with in a month's time after he/she has learned the truth and if it is realized that the insured person is malicious, the insurer has a right to get the premium.
  • During the insurance: The insured cannot change the place or the condition of the insured good without informing the insurer. If not; the insurer may annul the contract in 8 days. If the insurer misses the 8-day-time period, he loses his right of cancellation.
  • In case of the happening of the risk: The insured has to inform the insurer in 5 days as from he has learned about the happening of the risk. Otherwise he loses his all rights arising from the insurance.

2. Protections measures:

The insured is responsible for taking all the precautions that can be effective for preventing and reducing the damage. The amount that is spent for these precautions is indemnified form the insurer.

3. Payment of premium:

The insured has to pay the premium and first premium is supposed to be paid at the time of the contract and in reply to the delivery of the policy. The premium is paid by money. Paying by monthly or yearly installments can be determined; if not, the insured has to make a full payment for the premium. The responsibility of the insurer starts on the date when the premium is paid. After the contract has been conducted, before the responsibility of the insurer has started, the insured can renege on the contract in condition that he pays the half amount of the premium. As a general rule he premium is paid at the insured's residence address. In case of the termination of the insurance contract because of legal reasons, the premium that belongs to the time after the termination is given back to the insured person.

The Obligations of the Insurer

Only the obligation of compensation of the insurer is regulated. According to the legislation; the obligation of the insurer arises when the insured informs him about the happening of the risk. The amount of compensation is determined according to the current amount of the insured interest at the time the risk happens. If the amount of the interest is not stated when the contract was made, the insured has to prove the amount of the good at the time the risk happens. On the other hand if the insurer claims the amount of the insured good is less than stated has to prove that. If there is a fault of the insured on the occurrence of the risk, the insurer may compensate it; however, the insurer does not compensate the damages arising from the insured's intention or defect of goods insured. The insurer is only responsible for the real damages, which the insured suffered.

According to subrogation principle, after the insurer pays the insurance amount, he/she replaces with the insured person legally and if the insured has the right to proceed against the third persons because of his damages, this right also replaces to the insurer.

Apart from main legislation, the responsibility of the insurer's is drawn up in a guideline as well which aims to identify the duties and obligations of the insurer during the conduct of the contract and continuation. This obligation starts before the conducting of the contract and lasts during the time in which the contract valid as well and can be fulfilled by oral or written. According to the following article of this regulation as a requirement of the honesty principles, the insurer has to help the insured with the technical points during the consultation, development and the continuation of the contract, provide oral and written information about the continuing of the insurance and avoid any behavior that might confuse the insured. If the insurer fails to perform his obligations, gives confusing or imperfect information to the other party or not deliver the information form to the insured, the insured might annul the contract and indemnify his loss. The insurer has to answer all kind of written complaints in 15 days at the latest after getting them. During the period in which the contract is valid, the insurer fulfills the obligation of informing by registered letter, fax, telegraph, e-mail or electronic sign.

As a general rule the same person against the same risk cannot insure an interest, which has been insured for its whole value.

If the insurance amount exceeds the amount of the insured interest, this part of the insurance becomes invalid. The amount of insured and the premium is reduced and if the premium has been taken, it is paid back.

If an interest is insured at the same time and against the same risks by more than one insurer, all the insurances remain valid for only the amount of the insured interest; the exceeding part becomes invalid. In this case each one of the insurers is responsible for the amount what they have insured.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.