Attorney Bilal Alyar | Istanbul Bar Association, Reg. No: 54965 | Last Updated: March 2026

Turkey’s insurance sector, regulated under the Insurance Law (Sigortacılık Kanunu, Law No. 5684) and overseen by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), is one of the fastest-growing in Europe with gross written premiums exceeding $20 billion annually. For foreign nationals and businesses in Turkey — whether dealing with property insurance, motor vehicle coverage, health insurance for residence permit applications, or commercial liability policies — understanding the Turkish insurance legal framework is essential. This guide covers the key areas of insurance law affecting individuals and businesses in Turkey.

Turkish Insurance Regulatory Framework

The insurance sector is governed by: Insurance Law No. 5684, the Turkish Commercial Code (TTK Book Six, Articles 1401-1520) which covers general insurance contract principles, the DASK Law (Law No. 6305) for mandatory earthquake insurance, the Motor Vehicle Compulsory Liability Insurance (ZMSS) regulations, and various SEDDK communiqués and circulars. The SEDDK (Sigortacılık ve Özel Emeklilik Düzenleme ve Denetleme Kurumu, established 2019 as successor to the Treasury’s Insurance General Directorate) supervises all insurance and reinsurance companies, agents, brokers, and loss adjusters operating in Turkey.

Types of Insurance in Turkey

Mandatory insurance: DASK earthquake insurance (all residential buildings), ZMSS motor vehicle third-party liability, professional liability for certain professions (architects, medical practitioners), and employer liability insurance for hazardous workplaces. Voluntary insurance: Comprehensive motor (kasko), health/medical, life and pension, property/fire, cargo/marine, liability (general, professional, D&O), engineering/construction, credit and surety, and travel insurance. The Turkish insurance market has over 60 licensed insurance companies, including subsidiaries of major international groups (Allianz, AXA, Zurich, Generali) alongside domestic carriers.

Insurance Claims Process

Filing an insurance claim in Turkey follows a standard procedure: (1) Notify the insurer in writing within the policy’s notification period (typically 5-10 days, though late notification does not automatically void the claim if the insurer is not prejudiced). (2) Provide all requested documentation (police reports for theft/accident, medical reports for health claims, damage assessments for property claims). (3) The insurer appoints a loss adjuster (hasar eksperi) to assess the claim. (4) The insurer must respond within the time frame specified in the policy or, absent a specific provision, within a “reasonable period” (generally interpreted as 30-45 days). (5) If the claim is accepted, payment must be made promptly. If rejected, the insurer must provide written reasons. Disputed claims can be pursued through the Insurance Arbitration Commission (Sigorta Tahkim Komisyonu — claims up to approximately 300,000 TRY), consumer arbitration boards (Tüketici Hakem Heyeti — claims up to certain thresholds), or the commercial courts.

DASK: Mandatory Earthquake Insurance

DASK earthquake insurance is mandatory for all residential buildings with an occupancy certificate (iskan belgesi) in Turkey. DASK is required for TAPU transfers, utility connections, and building permits. Coverage includes: earthquake damage, fire/explosion resulting from earthquake, and tsunami/landslide caused by earthquake. The 2026 maximum coverage is approximately 640,000 TRY per dwelling. DASK does NOT cover: contents/furniture, business interruption, vehicles, or damage exceeding the coverage limit. For high-value properties, supplementary earthquake coverage from private insurers is essential.

Motor Vehicle Insurance

Turkey has two main motor insurance types: ZMSS (Zorunlu Mali Sorumluluk Sigortası): mandatory third-party liability, covering bodily injury and property damage caused to others. 2026 limits: approximately 3.6 million TRY for bodily injury and 900,000 TRY for property damage per accident. Premiums are regulated by SEDDK. Kasko: voluntary comprehensive coverage for the policyholder’s own vehicle, covering theft, accident damage, natural disasters, and fire. Kasko policies vary significantly between insurers in terms of coverage scope, deductibles, and exclusions.

Health Insurance for Foreign Nationals

Foreign nationals applying for Turkish residence permits must have health insurance meeting minimum standards set by the migration authority. Options include: SGK (Turkish Social Security) — available to residence permit holders and employees, providing comprehensive public healthcare coverage. Private health insurance from Turkish insurers — required to meet specific coverage thresholds for residence permit applications. The migration authority does not accept foreign-only insurance policies (without a Turkish partner). For citizenship by investment applicants, health insurance is a residence permit prerequisite.

Insurance Disputes and Bad Faith

Turkish law provides robust protections for policyholders against unfair insurance practices. Under TTK Article 1409, insurance policies are interpreted in favor of the insured in cases of ambiguity. Insurers have a duty of good faith (dürüstlük kuralı — TMK Article 2) in claims handling. Bad faith practices — including unreasonable claim delays, lowball settlement offers, and failure to investigate properly — can result in: the insured receiving the full policy amount (rather than the assessed loss), punitive interest on delayed payments, and potential compensation for consequential damages. The Insurance Arbitration Commission has been particularly active in protecting consumer rights.

Frequently Asked Questions

Can I buy insurance in Turkey as a foreign national?

Yes. Foreign nationals can purchase all types of insurance in Turkey. For residence permit applications, Turkish health insurance is mandatory. For property purchases, DASK earthquake insurance is mandatory for residential buildings. Motor vehicle insurance (ZMSS) is mandatory for all registered vehicles regardless of the owner’s nationality.

What should I do if my insurance claim is denied?

First, request written reasons for the denial. Then consider: (1) Filing a complaint with the Insurance Arbitration Commission (free for claims under certain thresholds, binding on insurers). (2) Applying to the Consumer Arbitration Board for individual claims. (3) Filing a lawsuit in commercial court if the amount exceeds arbitration limits or the dispute is complex. Legal representation is recommended for contested claims. Contact us at +90 545 199 25 25.

Is insurance regulated differently for foreign companies?

Foreign insurance companies cannot sell insurance directly in Turkey without establishing a Turkish subsidiary or branch licensed by SEDDK. However, for international marine, aviation, and certain specialty risks, policies placed through international markets may be permissible. Foreign-owned Turkish insurance companies operate under the same regulatory framework as domestic companies.

Insurance Arbitration Commission (Sigorta Tahkim Komisyonu)

The Insurance Arbitration Commission is Turkey’s specialized dispute resolution body for insurance claims. Established under the Insurance Law (No. 5684), it provides a faster and cheaper alternative to court litigation. Jurisdiction: claims against insurance companies and reinsurers for disputes arising from insurance contracts. Monetary limit: claims up to approximately 300,000 TRY (threshold adjusted annually). Procedure: the policyholder files a complaint through the Commission’s online portal, the insurer responds within 15 days, the arbitrator reviews documents and may hold a hearing, and the decision is binding on the insurer (the policyholder can still appeal to court if unsatisfied). Timeline: typically 2-4 months (vs. 12-24 months for court litigation). Cost: minimal filing fee (approximately 500-2,000 TRY depending on claim amount). Appeal: decisions up to approximately 75,000 TRY are final. Decisions above this threshold can be appealed to the court within 10 days. The Commission processes approximately 50,000 claims annually, with a policyholder-favorable outcome in approximately 55-60% of cases.

Bad Faith Insurance Practices: Legal Protections

Turkish law provides robust protections against unfair insurance practices: Duty of Good Faith (TMK Article 2): Both insurer and insured owe a duty of good faith. For insurers, this means: prompt and fair investigation of claims, reasonable settlement offers based on actual damage assessment, no unreasonable delays in processing, and clear communication of claim decisions with specific reasons. Consequences of Bad Faith: Under TTK Article 1409, insurance policies are interpreted in favor of the insured in cases of ambiguity. An insurer acting in bad faith may face: the full policy amount (rather than the assessed loss), legal interest on delayed payments (approximately 24% annual commercial interest rate in 2026), and potential liability for consequential damages caused by the delay (e.g., if delayed payment caused the insured to suffer additional financial losses). Consumer Protection: Individual policyholders benefit from Consumer Protection Law (No. 6502): unfair contract terms in insurance policies can be declared void, the insurer bears the burden of proving that policy exclusions apply, and the policyholder has access to the Consumer Arbitration Board for disputes below certain thresholds.

Motor Vehicle Insurance: ZMSS and Kasko

ZMSS (Zorunlu Mali Sorumluluk Sigortası — Mandatory Third-Party Liability): Required for all registered motor vehicles. Coverage limits for 2026: approximately 3,600,000 TRY for bodily injury per person, 7,200,000 TRY for bodily injury per accident, and 900,000 TRY for property damage per accident. Premiums: regulated by SEDDK, calculated based on vehicle type, engine capacity, and the driver’s claim history (bonus-malus system). Green Card: for driving Turkish-registered vehicles in European countries, the ZMSS must be supplemented with a Green Card (Yeşil Kart). Kasko (Voluntary Comprehensive): Covers the policyholder’s own vehicle for: theft, accident damage (regardless of fault), natural disasters, fire, glass breakage, and key loss. Kasko policies vary significantly between insurers — compare: deductible amounts (muafiyet), coverage exclusions, additional benefits (roadside assistance, rental car, personal accident), and premium costs. For property owners with vehicles in Turkey, both ZMSS and kasko are essential. For foreign nationals, an international driving permit or Turkish license is required to drive.

Health Insurance Options for Foreign Nationals

Foreign nationals in Turkey have several health insurance options: SGK (Social Security): Available to: employees with work permits (mandatory — employer contributions), voluntary subscribers (isteğe bağlı sigortalı — self-employed, retirees), and residence permit holders (can opt in after 3 months). Coverage: comprehensive — includes doctor visits, hospital stays, surgery, medication, laboratory tests, and maternity. Cost: approximately 14% of declared income for employees. Pros: comprehensive coverage, no pre-existing condition exclusions. Cons: long wait times at public hospitals, limited private hospital access. Private Health Insurance: Available from Turkish insurers (Allianz, AXA, Anadolu Sigorta, Acıbadem Sigorta). Coverage: varies by plan — basic (outpatient only) to comprehensive (inpatient + outpatient + maternity + dental). Premiums: $200-600/year for basic, $1,000-3,000/year for comprehensive. Pros: access to private hospitals, shorter wait times, wider specialist network. For residence permit applications, private insurance from a Turkish-registered insurer meeting minimum coverage thresholds is required.

Frequently Asked Questions

Is DASK sufficient for earthquake coverage?

DASK provides a maximum of approximately 640,000 TRY coverage — adequate for some properties but insufficient for higher-value homes. DASK covers structural damage only — no contents, no loss of rent, no temporary accommodation. For properties valued above the DASK ceiling (particularly investment properties in Istanbul), supplementary earthquake insurance from a private insurer is strongly recommended. The supplementary policy covers the gap between DASK’s ceiling and the full replacement value.

Can I use my home country insurance in Turkey?

For travel: yes, subject to policy terms. For residence permit applications: generally NO — the migration authority requires Turkish-registered insurance. For healthcare: private treatment can be paid out of pocket and claimed from home country insurance (subject to policy terms), but this is not a substitute for the residence permit insurance requirement.

Insurance Dispute Services

Turkish insurance law provides robust protections for policyholders. Our office assists with: claim denial disputes before the Insurance Arbitration Commission, bad faith insurance practices litigation, DASK (earthquake insurance) coverage disputes, motor vehicle accident claims (ZMSS and kasko), health insurance disputes for foreign nationals, and commercial insurance coverage litigation. The Insurance Arbitration Commission provides a faster and cheaper alternative to court — decisions are binding on insurers. For insurance claims requiring legal assistance, contact us at +90 545 199 25 25.