Maximum amount of premium increase determined in compulsory traffic insurance
The maximum amounts of the premiums in compulsory circulation insurance will increase by 2 percent per month, starting in May 2023, over the amounts of the previous premiums.
Some adjustments have been made to the regulation on the principles of tariff application in the compulsory civil liability insurance of motor vehicles on the roads, published in today’s Official Gazette.
Consequently, the Agency for the Regulation and Supervision of Insurance and Private Pensions (SEDDK) will be empowered to reduce to zero or double this rate, which is determined taking into account the frequency of damages, the costs of damages and others.
In the previous request, SEDDK had the authority to reduce the maximum premium amounts by 50 percent.
UP TO A 20 PERCENT DISCOUNT CAN BE IMPLEMENTED
The SEDDK may introduce a discount of up to 20 percent in the determination of insurance premiums in addition to the rates regulated in this regulation, if in the repair of damages and payment of compensation.
In accordance with the provisions of the tables with the regulations, a discount of 10 percent is foreseen in the maximum premium rates for electric vehicles.
INCREASE IN PREMIUM AT ZERO LEVELS IN THE DAMAGE TABLE 200 PERCENT
With the modification made to the regulations, the discount and increase rates were redefined in the table for reduction of premium without claim and increase in premium per claim and steps zero and 8 were added to the table.
In this context, the premium increase rate was determined to be 200% for the zero level recently added to the table, and the premium discount rate without claims was determined to be 50% for the eighth notch.
The premium increase rates of 135 percent, 90 percent, and 45 percent, respectively, from the 1st stage for policyholders in the first four digits of the table, including zero, for damages, were not changed, but yes premium discount rates. they were reduced.
NO DAMAGE PREMIUM DISCOUNT RATES HAVE BEEN REDUCED
The expected premium discount rates for those included in the premium discount section of the table; It was reduced from 10 to 5 percent for the fifth level, from 22 to 20 percent for the sixth level, and from 42 to 40 percent for the seventh level.
For insureds who are in step 7 for at least 5 insurance periods, if compensation is not paid within the term of the insurance contract, the step 8 discount rate will be applied in the next insurance contract.
For 1st level insured, in the event of 3 or more compensations derived from traffic accidents within the insurance period, the zero step will be applied in the next insurance contract.
THOSE WHO GO TO THE TRAFFIC FOR THE FIRST TIME WILL PAY 10 PERCENT OF HIGH PREMIUM
For those who are going to travel for the first time, the 4th step of the table of discounts and premium increases without claims will be applied, and in this step a premium increase of 10 percent is expected.
The maximum 4th level premiums applied in April 2023 according to vehicle group and type of use will be applied as the base premium for the application of the level in the table from May 1.
The maximum premiums to apply from the beginning of May will be applied by adding 5 percent to the maximum premiums of the 4th level depending on the group of vehicles applied in April 2023. The changes will take effect from April 15. (Reuters)