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Compulsory financial liability insurance for motor vehicles on highways, or, as it is known in everyday life, traffic insuranceis a financial liability insurance policy made compulsory by the state. In this article we discuss the legal basis of traffic insurance, what it does and does not cover, the types of cover and which year’s cover limits apply.
Currency note
This article was prepared in accordance with the legislation and practice in force on the date of publication. The cover limits in the article relate to the years at the date of publication; the limits and the provisions on the assessment of diminution in value and on the scope of medical expenses cover may have changed since that date. You are advised to consult a lawyer on the current position.
Traffic Insurance is an insurance policy that, under Article 91 of Highway Traffic Law No. 2918, must be taken out anew every year by the operators of motor vehicles used on highways.
Article 91 of the Highway Traffic Law provides: “Operators are obliged to take out financial liability insurance to ensure that their liabilities under the first paragraph of Article 85 of this Law are covered.”
Highway Traffic Law No. 2918, Art. 91
Through this compulsory type of indemnity insurance, damage to the property and physical integrity of third parties arising in a traffic accident caused by motor vehicle operators/owners is compensated within the policy limits.
Looking at paragraph 85/1 of the Highway Traffic Law, it provides: “If the operation of a motor vehicle causes the death or injury of a person or damage to property, where the motor vehicle is operated under the title or trade name of an enterprise or with a ticket issued by that enterprise, the operator of the motor vehicle and the owner of the enterprise to which it belongs are jointly and severally liable for the resulting damage.”
Highway Traffic Law No. 2918, Art. 85/1
In order to prevent the vehicle owner/operator from incurring very large financial liabilities in the cases specified in the provision, Traffic Insurance, regulated in Article 91 of the Highway Traffic Law, is made compulsory by the state for motor vehicle owners/operators every year.
A commonly confused issue
A matter frequently confused by motor vehicle owners is that traffic insurance (ZMSS) does not cover damage to the insured vehicle itself. In a traffic accident, the damage to the other vehicle, or the losses of third parties who are disabled or temporarily unable to work, will be covered within the policy limits in proportion to the fault of the driver of the vehicle insured under traffic insurance (ZMSS).
The cases covered by traffic insurance (ZMSS) are as follows:
1 · Property Damage Cover
This is the reduction in the right holder’s property directly, as defined in these General Conditions, including the loss of value of the damaged vehicle. Where loss of value is claimed, it is determined by licensed insurance loss adjusters in the relevant branch, appointed in rotation through a system to be established at the Insurance Information and Monitoring Centre, in accordance with the principles set out in the annex to these General Conditions.
Material damage may include damage to the other party’s vehicle, loss of value and the temporary loss of use of that vehicle.
2 · Medical Expenses Cover
This cover includes all treatment expenses, including the cost of prosthetic organs, incurred to restore the third party physically to their former condition following a traffic accident. Carer expenses arising during treatment, from the start of the victim’s treatment following the accident until the victim obtains a permanent disability report, other treatment-related expenses and expenses relating to the partial or total reduction of working capacity due to the traffic accident are within the scope of the medical expenses cover.
3 · Permanent Disability Cover
This is the cover, determined in accordance with the principles set out in the annex to the ZMSS General Conditions, to meet the pecuniary losses that the third party will suffer economically in the future as a result of permanent disability. Medically necessary carer expenses arising after the completion of the victim’s treatment following the accident and the determination of the permanent disability rate by a medical board report obtained from an authorised hospital fall within the scope of the permanent disability cover, subject to the limits of this cover.
4 · Loss of Support (Death) Cover
This is the compensation, determined in accordance with the principles set out in the annex to the ZMSS General Conditions, to meet the loss of support suffered by those deprived of the support of a third party who has died.
The cover set out above is updated every January by regulation published by the Ministry of Treasury. For this reason, the most common problem in practice is as follows: although a Traffic Insurance (ZMSS) Policy is taken out for 1 year, a policy beginning on 02.05.2019 will end on 02.05.2020. A person holding a policy issued according to the limits of 2019, the year in which the policy was issued, assumes that, following a traffic accident occurring in 2020, the cover limits are those of 2019.
Important · The limit of the accident year
However, following a traffic accident occurring in 2020, the cover limit that will apply will be that of 2020.
Cover Limits for 2020
| Medical Expenses | Disability and Death | Maddi Zarar | |||
|---|---|---|---|---|---|
| Per Person | Per Accident | Per Person | Per Accident | Per Vehicle | Per Accident |
| 410.000 TL | 2.050.000 TL | 410.000 TL | 2.050.000 TL | 41.000 TL | 82.000 TL |
Cover Limits for 2021
| Medical Expenses | Disability and Death | Maddi Zarar | |||
|---|---|---|---|---|---|
| Per Person | Per Accident | Per Person | Per Accident | Per Vehicle | Per Accident |
| 430.000 TL | 2.150.000 TL | 430.000 TL | 2.150.000 TL | 43.000 TL | 86.000 TL |
Damage exceeding the limits
For amounts exceeding the limits stated, the operator/owner of the insured vehicle will be liable for the resulting damage.
Related page: Traffic Accident Lawyer in Ankara — diminution in value, replacement vehicle, and compensation for accidents involving injury and death
Related page: Flood Damage Compensation Lawyer — comprehensive insurance claims for flood-damaged vehicles and compensation from the administration
Related legislation: Highway Traffic Law No. 2918 (mevzuat.gov.tr)
Yes. Under Article 91 of the Highway Traffic Law, operators are required to take out financial liability insurance to cover their liability arising from the first paragraph of Article 85 of the same Law; the policy is renewed every year.
No. Traffic insurance does not cover damage to the insured vehicle; it covers damage to the other vehicle and third parties' losses in proportion to the fault of the insured vehicle's driver, within the policy limits.
According to the General Conditions definition cited in the article, material damage covers the direct reduction in the value of property, including the loss of value of the damaged vehicle; the loss of value is assessed by insurance loss adjusters.
It covers treatment expenses, including the cost of prosthetic organs, for the third party's physical recovery, caregiver expenses incurred during treatment until a permanent disability report is obtained, and other treatment-related expenses.
According to the article, the operator or owner of the insured vehicle is liable for the portion exceeding the limits. The article also states that in an accident, the limits of the year in which the accident occurred apply, not those of the year the policy was issued.
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