This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Sigorta Şirketi Ödemiyor: Tahkim mi, Dava mı?.
The order is fixed: a written application to the insurer first, then either the Insurance Arbitration Commission or the commercial court. The written application is a mandatory precondition. Limitation in insurance is as a rule two years, and missing it extinguishes the claim.
You reported the damage, the adjuster came — and payment was refused, or made far below what you expected.
Two routes are then open: the Insurance Arbitration Commission and the courts. This article covers which to choose and how to meet the usual grounds of refusal.
Why the Insurer Comes First
Both routes begin the same way: a written application to the insurer, and a refusal of the claim in whole or in part.
Set the claim out concretely: the policy number, the claim file number, the amount claimed and its basis.
Ask for a copy of the loss adjuster's report as well. The reason for refusal is usually in it, and going further without challenging the report wastes time.
The insurer must answer in writing. A refusal, or no answer at all, is the precondition of the next stage.
Applying to the Arbitration Commission
The Insurance Arbitration Commission, established under Article 30 of the Insurance Act (no. 5684), resolves disputes between insurers and policyholders or those with an interest under the policy.
Its advantages:
- Speed. The arbitrators must decide within the short period the Act lays down from their appointment.
- Low cost. The fees are lower than court fees and expenses.
- Expertise. The arbitrators specialise in insurance law.
The precondition: a dispute must have arisen with the insurer, and the claim must have gone unmet in whole or in part despite an application to it.
Finality: arbitrators' decisions below the amount set in the Act are final. Above that amount an objection lies, and is examined by the appeal panel of arbitrators.
Note that the insurer is as a rule expected to be a member of the Commission; in disputes arising from compulsory insurance an application is possible even against non-members.
The Usual Grounds of Refusal
1. An exclusion from cover. Driving under the influence, driving without a licence, leaving the key in a stolen vehicle, intent.
The answer: the insurer must prove that the exclusion applies. And a causal link is required between the excluded circumstance and the loss — if being over the limit had no causal connection with the accident, payment is due.
2. Non-disclosure. That matters which should have been declared when the policy was written were not.
The answer: under Articles 1439 ff. of the Commercial Code a breach of the duty of disclosure gives the insurer, on defined conditions, a right to withdraw or to require an additional premium; not every non-disclosure removes the right to payment automatically. What is assessed is its bearing on the risk that materialised.
3. Late notification. That the loss was notified late.
The answer: under Article 1446 late notification can lead to a reduction in the indemnity, but it is assessed according to the fault and its effect; it is not a ground for refusing the whole claim.
4. Under-insurance. Where the sum insured is below the insurable value, Article 1462 makes the insurer liable proportionately. What has to be examined here is whether the sum in the policy was correctly fixed in the first place.
| Ground | Assessment |
|---|---|
| Driving under the influence | A causal link between the alcohol and the accident is required |
| Driving without a licence | The bearing of the licence category on the accident is examined |
| Breach of the duty of disclosure | Its relevance to the risk and its gravity are examined |
| Excessive speed | The scope of the exclusion in the policy is scrutinised |
| Undervalued adjustment | The loss adjuster's report can be challenged |
| Late notification of the loss | Whether the delay increased the loss is examined |
Ambiguous terms in an insurance contract are construed against the party that drafted them — that is, in the insured's favour.
Challenging the Loss Adjuster's Report
Disputes about the amount usually come from the adjuster's report.
What to do:
- Ask for the whole report and establish which items were left out.
- Put in a competing quotation. Repair estimates from an authorised dealer are strong evidence.
- Claim the diminution in value separately. The cost of repair does not compensate the fall in the vehicle's market value.
- Put in photographs and records showing the extent of the damage.
- Have the evidence preserved. Applying to the court to preserve evidence before the vehicle is repaired is decisive for everything that follows.
That last point matters most: once the vehicle has been repaired, proving the extent of the damage becomes very hard.
Once the vehicle is repaired, the extent of the damage is almost impossible to prove. Apply for preservation of evidence first, ask for the full adjuster's report, and remember the limitation period in insurance is as a rule two years.
Frequently Asked Questions
What do I have to do before arbitration or court?
Apply to the insurer in writing, setting out the policy and claim numbers, the amount and its basis — and have the claim refused in whole or in part. That application is a precondition.
Why choose the Arbitration Commission?
It is faster, cheaper and decided by specialists. Decisions below the statutory amount are final; above it an objection lies to the appeal panel.
They refused because I had been drinking. Is that the end of it?
No. The insurer must prove the exclusion, and a causal link between the excluded circumstance and the loss is required. Without causation, payment is due.
They say I did not disclose something.
A breach of the duty of disclosure gives the insurer defined rights, but it does not automatically defeat the claim. What matters is the bearing of the non-disclosure on the risk that materialised.
How long do I have?
As a rule two years in insurance. Miss it and the claim is extinguished.