Insurance Dispute Resolution — A Practical Guide
Insurance Law & Dispute Resolution
When an insurance claim is denied, delayed or settled for less than expected, policyholders often feel powerless. This guide explains the legal options available to Turkish policyholders for resolving insurance disputes effectively.
Understanding Your Policy First
The starting point in any insurance dispute is a careful reading of your policy. Key areas to examine: the precise scope of coverage (what is insured), exclusions (what is not covered), conditions precedent to coverage (notification deadlines, cooperation requirements), and the definition of the insured event. Many disputes arise from misunderstandings about coverage scope rather than bad faith by the insurer.
Formal Objection to the Insurer
Before initiating legal proceedings, Turkish insurance law requires policyholders to formally object to the insurer's decision. The objection should be made in writing, citing the specific policy provisions you believe require coverage and attaching supporting documentation. The insurer typically has a defined period (usually 15 days) to respond.
Insurance Arbitration Commission (Sigorta Tahkim Komisyonu)
Turkey operates a specialized Insurance Arbitration Commission (STK) for insurance disputes. For claims below a defined threshold, application to the STK is mandatory before court proceedings. The STK offers a faster and less expensive alternative to litigation, and its decisions are binding. Application is made online, with modest filing fees.
Court Proceedings
For larger claims or where STK jurisdiction does not apply (e.g., certain reinsurance disputes, commercial lines), civil court proceedings are the route. Insurance disputes are handled by commercial courts in Turkey. Time limits (prescription periods) are critical — typically 2 years for non-life insurance claims and longer for life insurance.
Key Evidence for Insurance Claims
• The original insurance policy and all endorsements
• Complete claims file submitted to the insurer
• All correspondence with the insurer
• Expert reports (fire reports, accident reports, medical reports as applicable)
• Evidence of loss quantum (repair estimates, invoices, medical bills)
• Formal notification of claim and insurer's written denial