Compulsory Earthquake Insurance in Turkey – Compensation Claim
Compulsory Earthquake insurance is a vital component in the protection of homes against earthquakes and related disasters like fire, explosion, landslide, and tsunami. In the event of an earthquake in a region declared as a state of emergency, insurance companies are obligated to prioritize the claim notifications and indemnity payments for policies in all insurance branches according to Article 7 of the Sector Announcement on the Measures to be taken in the Regions Declared State of Emergency due to earthquake 2023/3.
The coverage offered by compulsory earthquake insurance provides protection for material losses directly caused by an earthquake, as well as any fire, explosions, tsunamis, or landslides resulting from the earthquake, within the policy limits. The coverage includes the following building sections: foundations, main walls, common walls separating independent sections, garden walls, retaining walls, ceilings and floors, stairs, elevators, landings, corridors, roofing, chimneys, and complementary parts of the building.
Despite the comprehensive coverage provided by compulsory earthquake insurance, there are certain cases that are excluded from the coverage. These include debris removal costs, loss of profit, interruptions to business, loss of rental income, alternative residential or workplace expenses, financial responsibilities and similar indirect losses, movable goods, articles and similar items, bodily harm including death, non-pecuniary compensation claims, damages not caused by the earthquake or events caused by the earthquake, and damages that occur over time due to building defects and characteristics.
The TCIP provides compulsory earthquake insurance with a maximum coverage limit of TL 640,000 for all building types as of 25 November 2022, with the aim of enabling insurance holders to quickly resume their lives after a possible earthquake disaster. The maximum coverage limit is determined by the cost of rebuilding the demolished dwelling, excluding the plot value, and is based on the size and construction type of the dwelling, subject to the maximum coverage limit. If the value of the dwelling exceeds the maximum coverage limit, the insured party can opt for additional coverage from insurance companies.
Compulsory earthquake insurance covers dwellings within the boundaries of a municipality and includes buildings that are privately owned, commercial buildings, and dwellings built by the state or with loans disbursed due to natural disasters. Buildings for which floor servitude is established, cooperative housing where the title deed has not yet been allocated, and dwellings built before 2000 can also be insured based on the declaration of the insured person and with the information pertaining to the plot title deed.
On the other hand, buildings that are excluded from compulsory earthquake insurance include public housing and public service buildings, buildings built in and around village settlement areas and hamlets, commercial or industrial buildings, buildings without engineering services, modified or weakened buildings, buildings constructed in violation of legislation, and condemned buildings.C ompulsory earthquake insurance is a vital tool in the protection of homes and buildings against the damage caused by earthquakes. With comprehensive coverage and a rapid recovery process, insurance holders can quickly resume their lives after a disaster, with the peace of mind that their homes and possessions are protected.
Earthquakes can have devastating effects on both people and properties. In case of such a natural disaster, it is important for individuals to know the process of obtaining compensation for the damages incurred. In this article, we will look at the process of compensating individuals for damages caused by earthquakes through compulsory earthquake insurance.
Compulsory Earthquake insurance is an insurance policy that protects individuals from the financial losses incurred due to earthquakes. The indemnity for this insurance policy is based on the current cost of rebuilding the building that has been damaged in the market conditions prevalent at the time and place of the occurrence of the risk. However, it is important to note that the insurance indemnity cannot exceed the sum insured as defined in the policy. A deductible of 2% of the sum insured is applied to each claim. If an individual has compulsory earthquake insurance, they can make a damage notification either directly or through authorized insurance companies. The Turkish Catastrophe Insurance Pool (TCIP) evaluates the damage and opens a damage file. Then, damage assessors are appointed to determine the extent of the damage.
Once the compensation amount has been determined, it can be collected from any branch of Vakıfbank. This is made possible by using the citizenship number of the beneficiary along with a password sent to them as a text message.
In conclusion, compulsory earthquake insurance is a crucial way for individuals to protect themselves from financial losses incurred due to earthquakes. It is important for individuals to consider getting compulsory earthquake insurance in order to ensure that they are protected from the financial losses incurred due to earthquakes.