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The General Terms Amending the General Terms and Conditions of Compulsory Earthquake Insurance (the “Amendment”), published in the Official Gazette dated 21 August 2026 and numbered 33347, revised Article C.4 of the General Terms and Conditions of Compulsory Earthquake Insurance concerning changes in the beneficiary.
The Amendment sets out the principles applicable to the termination of the existing Compulsory Earthquake Insurance (“CEI”) policy, the refund of premiums corresponding to the unused coverage period, and the verification of the new beneficiary’s CEI policy in cases where the insured property changes ownership as a result of a sale or similar transaction. In cases where the beneficiary changes for reasons other than a sale or similar transaction, the existing policy will remain in force and the new beneficiary will be required to notify the insurance company of such change. The key amendments introduced by the Amendment and their potential practical implications are summarized below.
Existing CEI Policy to Terminate upon Land Registry Registration in Sales and Similar Transactions
Pursuant to the Amendment, where the beneficiary of the insured property changes during the policy term as a result of a sale or similar transaction, the existing CEI policy will terminate as of the date of registration with the land registry.
Accordingly, where ownership of the property is transferred through a sale or similar transaction, the existing insurance policy relating to the former beneficiary will terminate upon registration of the transfer with the land registry, rather than continuing with the new beneficiary.
Upon application by the policyholder or the former beneficiary, the policyholder will be refunded premiums paid for the unexpired period following the policy's termination.
The Amendment thus establishes a direct link between the transfer of ownership and the termination of the CEI policy, while also expressly regulating the refund of premiums corresponding to the unused coverage period.
New Beneficiary’s CEI Policy to Be Verified
Where the beneficiary changes as a result of a sale or similar transaction, the relevant land registry directorate or other authority authorized to carry out the transaction will verify whether the new beneficiary has a CEI policy in place.
Accordingly, persons acquiring a property should ensure that they have a valid CEI policy in their own name prior to completing the relevant transaction before the land registry directorate or other competent
Existing CEI Policy to Remain in Force in Other Cases of Change of Beneficiary
Where the beneficiary changes for reasons other than a sale or similar transaction, the CEI policy will not terminate and will continue with the new beneficiary.
In such a case, the new beneficiary must notify the insurance company that intermediated the policy of the change within 15 days from the date the new beneficiary becomes aware of the policy's existence.
Accordingly, the Amendment introduces two different approaches depending on the legal basis for the change of beneficiary. While the existing policy will terminate upon registration with the land registry in the case of a sale or similar transaction, in other cases of change of beneficiary, the policy will continue with the new beneficiary, who will be subject to a notification obligation.
Insurance Company or Agency Required to Issue an Updated Policy Within 24 Hours
Where the new beneficiary notifies the insurance company of the change, the relevant insurance company or agency must provide the new beneficiary, within 24 hours of receiving the notification, with the policy incorporating the endorsement reflecting the change of beneficiary.
The Amendment thus introduces a 24-hour timeframe for insurance companies and agencies to reflect the change of beneficiary in the insurance policy.
Accordingly, insurance companies and agencies must ensure that their processes for receiving and processing notifications of changes in beneficiaries, and delivering the policy incorporating the relevant endorsement to the new beneficiary, are carried out within the prescribed 24-hour period.
PPRSA Authorized to Regulate the Implementation
Under the Amendment, the Insurance and Private Pension Regulation and Supervision Agency (“PPRSA”) has been authorized to resolve any uncertainties and practical issues that may arise in the implementation of Article C.4, to issue the necessary regulations to ensure uniform implementation, and to determine the procedures and principles governing the implementation of the relevant article.
Accordingly, where necessary, PPRSA may further shape the details of implementing the new framework through secondary regulations or guidance.
Entry into Force
The Amendment, the provisions of which will be implemented by the President of PPRSA, will enter into force 15 days after its publication in the Official Gazette on 21 August 2026.
Assessment and Conclusion
The Amendment differentiates the consequences of a change in the beneficiary under CEI policies depending on the legal basis for such change. Where the change of beneficiary results from a sale or similar transaction, the existing policy will terminate on the date of registration with the land registry, and the transfer process will verify the existence of a CEI policy in the name of the new beneficiary. In other cases of change of beneficiary, the existing policy will continue with the new beneficiary.
The new framework has direct implications particularly for parties to real estate sale and transfer transactions, as well as insurance companies and agencies. In the case of sales and similar transactions, the new beneficiary will need to have a CEI policy in place, whereas in other cases of change of beneficiary, the new beneficiary will be required to comply with the 15-day notification period and the insurance company or agency will be required to comply with the 24-hour timeframe for issuing the updated policy.
Accordingly, insurance companies and agencies should review their existing operational processes relating to changes of beneficiaries in light of the new timeframes and obligations. Persons intending to acquire a property should also verify, prior to the transfer, that a valid CEI policy is in place in their name.
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.
