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04 Feb, 2025

On February 28, 2023, the “Communiqué on Amending the Communiqué on Increasing the Monetary Limits in the Twelfth and Fifteenth Paragraphs of Article 30 of the Insurance Law” was published in the Communiqués section of the Official Gazette, issue number 32118.

PAST CHANGES TO MONETARY LIMITS

The monetary limits specified in the twelfth and fifteenth paragraphs of Article 30 of the Insurance Law No. 5684, dated June 3, 2007, were increased by the Communiqué on Increasing the Monetary Limits in the Twelfth and Fifteenth Paragraphs of Article 30 of the Insurance Law, which was published on April 16, 2022, and came into effect on May 1, 2022. From 2007 to 2022, the monetary limits were changed only once. However, due to current conditions, the Insurance Arbitration Commission found it necessary to introduce a new regulation and made further changes to the monetary limits on February 28, 2023.

WHAT DOES THE PUBLISHED COMMUNIQUÉ COVER?

The relevant communiqué was published in the Official Gazette on February 28, 2023. It amends the communiqué published in the Official Gazette dated April 16, 2022, issue number 31811, which increased the monetary limits in the twelfth and fifteenth paragraphs of Article 30 of the Insurance Law No. 5684, titled “Insurance Arbitration.” Accordingly, the changes in the monetary limits of the relevant article over the years are as follows:

RELEVANT 12TH AND 15TH PARAGRAPH 2007 2022 2023
For applications made to the Insurance Arbitration Commission, disputes below …. ₺ Turkish Lira will be final, while disputes of …. ₺ Turkish Lira or more can be appealed to the Insurance Arbitration Commission. 5,000 8,000 15,000
For disputes exceeding …. ₺ Turkish Lira, appeals against arbitration decisions given upon objection can be taken to the Court of Cassation. 40,000 107,000 238,730
For disputes of …. ₺ Turkish Lira and above, the formation of an arbitration panel is mandatory. 15,000 24,000 50,000

Table – Changes in monetary limits for the years 2007, 2022, and 2023

In light of the updated communiqué published on February 28, 2023, in issue number 32118 of the Official Gazette, titled “Communiqué on Amending the Communiqué on Increasing the Monetary Limits in the Twelfth and Fifteenth Paragraphs of Article 30 of the Insurance Law,” the following changes have been introduced:

ARTICLE 1- Article 1 of the Communiqué on Increasing the Monetary Limits in the Twelfth and Fifteenth Paragraphs of Article 30 of the Insurance Law, published in the Official Gazette dated April 16, 2022, issue number 31811, has been amended as follows:

“ARTICLE 1- (1) The purpose of this Communiqué is to redefine the monetary limits specified in the twelfth and fifteenth paragraphs of Article 30 of the Insurance Law No. 5684, dated June 3, 2007.”

ARTICLE 2- Article 3 of the same Communiqué has been amended as follows:

“ARTICLE 3- (1) Arbitration decisions regarding disputes below fifteen thousand Turkish Lira submitted to the Insurance Arbitration Commission are final. Arbitration decisions regarding disputes of fifteen thousand Turkish Lira or more can be appealed before the Insurance Arbitration Commission.

(2) Arbitration decisions given upon objection for disputes exceeding two hundred thirty-eight thousand seven hundred thirty Turkish Lira can be taken to the Court of Cassation.

(3) The formation of an arbitration panel is mandatory for disputes of fifty thousand Turkish Lira or more submitted to the Insurance Arbitration Commission.

(4) For the application of the monetary limits stated in the first and second paragraphs, the amount valid at the date the arbitration decision is made shall apply; for the third paragraph, the amount valid at the date the arbitration panel is formed shall apply.”

ARTICLE 3- This Communiqué shall enter into force on the date of its publication.

ARTICLE 4- The provisions of this Communiqué shall be executed by the President of the Insurance and Private Pension Regulation and Supervision Agency.

  1. For applications made to the Insurance Arbitration Commission, arbitration decisions for disputes below (< 15,000 TL) will be final.
  2. For disputes of (15,000 TL and above), arbitration decisions can be appealed before the Insurance Arbitration Commission.
  3. For disputes exceeding (> 238,730 TL), arbitration decisions given upon objection can be taken to the Court of Cassation.
  4. The formation of an arbitration panel is mandatory for disputes of (50,000 TL and above) submitted to the Insurance Arbitration Commission.

HOW WILL THE PUBLISHED COMMUNIQUÉ BE IMPLEMENTED?

The relevant communiqué will come into effect as of its publication date, February 28, 2023. From this date onward, arbitration decisions will be made in accordance with the amounts specified in Articles 1, 2, and 3 above, and the formation of an arbitration panel will be required in cases where the amount meets the criteria specified in Article 4.

Additionally, the amendment clarifies that “for the application of the monetary limits in the first and second paragraphs, the amount valid at the date the arbitration decision is made shall apply; for the third paragraph, the amount valid at the date the arbitration panel is formed shall apply.” This emphasizes when the monetary limits will be considered within the Insurance Arbitration Commission’s decision-making and review process.

You can access the full text of the communiqué at the following link: (https://www.resmigazete.gov.tr/eskiler/2023/02/20230228-9.htm).

If you have any questions, requests, or require further information based on the above explanations, the “Esenyel & Partners” team would be happy to assist you.

Esenyel Partners | Communiqué Amending the Communiqué on Increasing the Monetary Limits Pursuant to the Twelfth and Fifteenth Paragraphs of Article 30 of the Insurance Law
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