According to the second sentence of paragraph 18 of Article 88 of the Social Insurance and General Health Insurance Law No. 5510, it was not possible to rule for bad faith compensation against the SGK (Institution), even if the conditions were met.
However, the Constitutional Court, with its decision dated 09.05.2024 and numbered 2021/114 E. 2024/102 K., published in the Official Gazette No. 32611 on 24.07.2024, has annulled the provision that prevented the ruling of bad faith compensation against SGK.
Indeed, the Constitutional Court summarized the following regarding this receivable item:
- The Institution, according to the law, is regarded as the “creditor” in the execution proceedings initiated, meaning that public power is not used in the pursuit and collection of such receivables,
- The Institution, which already enjoys certain advantages compared to other individuals initiating execution proceedings for the determination of the receivable, was found to have no justifiable reason to be exempt from paying compensation when it acts in bad faith in initiating execution proceedings. Moreover, the different treatment between the Institution and other individuals initiating execution proceedings was found to violate the principle of equality.
Consequently, the relevant provision was annulled.
As of 24.07.2024, SGK (Institution) can no longer be exempted from bad faith compensation. In other words, if it is determined that the Institution has acted unjustly and in bad faith in initiating execution proceedings, it may now be subjected to such compensation.
If you wish to request more detailed information on the subject, you may contact us at any time using the contact numbers provided below.
