LEGAL PROCEDURE TO BE APPLIED IN CASE OF AN ACCIDENT WITH A FOREIGN LICENSE PLATE VEHICLE IN TURKEY
LEGAL PROCEDURE TO BE APPLIED IN CASE OF AN ACCIDENT WITH A FOREIGN LICENSE PLATE VEHICLE IN TURKEY
What is Compulsory Green Card Insurance for Vehicles with Foreign License Plates?
The Green Card is a document used to protect those who are injured as a result of accidents caused by foreign license plate vehicle owners during their travels in countries included in the green card system. The green card offers protection equivalent to the member country’s Motor Vehicle Compulsory Liability Insurance. Every foreign-registered vehicle entering the borders of the country must have this document.
Acceptance of Foreign Plated Vehicle with Full Damage as a Result of an Accident
In cases where the insured vehicle is damaged at a rate of 70% or more; and
- Becomes completely unusable,
- The repair costs to restore it to its previous condition are equivalent to the insurance value,
- It is impossible to repair the insured vehicle
the insured vehicle is considered as a total loss. Today, in common usage, these vehicles are called scrapped vehicles.
If the foreign license plate vehicle is fully damaged as a result of a traffic accident, the vehicle must be taken abroad or abandoned to customs. If the vehicle cannot be taken abroad, that is, if it is in the status of a scrapped vehicle, the vehicle must be abandoned to the Customs Directorate. In this case, the owner of the foreign license plate vehicle must submit a petition to the customs office to abandon the vehicle to customs. A committee is formed by the customs administration to determine the damage of the vehicle to be abandoned to the customs administration. As a result of the examinations made by the committee, if it is possible to repair the abandoned vehicle, the repair costs in Turkey and the market value in the country where it is registered abroad, whichever is lower, will be the loss of the vehicle owner.
The foreign license plate vehicle that has been scrapped as a result of a traffic accident must be requested to be deducted from the passport records with an application to the customs office.
If the owner of a fully damaged foreign-registered vehicle has an accident with a Turkish-registered vehicle and the accident was caused by the fault of the Turkish-registered vehicle, the damage must be reported to the Turkish insurance company or motor insurance company to which the vehicle is connected. The purpose of the compensation to be paid to the injured party is to compensate the actual damage. Accordingly, compensation may be claimed in the currency in which the damage was incurred, or it may be claimed in Turkish currency according to the market value on the day of actual payment.
Acceptance of Foreign Plated Vehicle as Partially Damaged as a Result of an Accident
In the event of partial damage to a foreign license plate vehicle in Turkey, the responsible party may be claimed for the repair costs of the vehicle, deprivation compensation for the time deprived of the vehicle during the repair period, and compensation for loss of value.
In cases where the vehicle is heavily damaged, but not scrapped, the vehicle may be abandoned directly to the Customs Directorate if it is not intended to be repaired.
When determining the loss in value of the vehicle, a general assessment is made based on the second-hand value in the market of the country where the vehicle is registered, the value after repair, the value before the date of the accident and the technical specifications of the vehicle. While determining the compensation amount to be received by the owner of the damaged vehicle, it will also be taken into consideration whether he/she has received payments from other insurance companies regarding the damage.
As a result of the damage assessment, in case of repair or abandonment of the vehicle, it will be valued according to the market value in the country where it is registered, and in case of repair, if necessary, the expenses to be incurred for the supply of parts from abroad will be paid by the insurance company.
Recovery of Material Damage to a Foreign Plated Vehicle as a Result of an Accident
As a result of a traffic accident in Turkey, the vehicle owner has the right to choose where the repair of the damage to the foreign license plate vehicle will be carried out. The vehicle owner can have the vehicle repaired in the country of residence or in Turkey. If the vehicle is to be repaired abroad, the actual damage cost will be determined and it will be decided to compensate for this cost.
If the repair costs exceed the insurance value of the vehicle, the vehicle is deemed to have suffered full damage. The insurance company is responsible for the actual damage to the vehicle up to the maximum limit specified in the policy.
Abandonment of a Foreign Plated Vehicle Damaged in an Accident to Customs
The abandonment of foreign-registered vehicles in Turkey to the customs office after a traffic accident does not mean that the vehicle will be considered completely destroyed. In such cases, it will first be evaluated whether the vehicle is in usable condition. If the vehicle is usable, it is determined whether it is possible to repair it.
When determining the loss for a vehicle abandoned even though it can be repaired, the repair cost in Turkey and the market value in the country of registration are taken into consideration. Accordingly, whichever of the values obtained is less, this amount is determined as the loss value. In this case, the more economical amount will be determined as the loss of the vehicle owner by comparing the market price of the vehicle abroad before the traffic accident and the repair costs to be incurred in case of repair in Turkey.
The information and documents regarding the damage, loss of value and loss of loss resulting from the accident of the foreign license plate vehicle in Turkey must be submitted by the vehicle owner. Likewise, the insurance company is also obliged to prove its claims and defenses.
Period of Limitation for Compensation of Material Damages
The period of limitations for claims for compensation of material damages arising from traffic accidents is set out in Article 109 of the Road Traffic Law. Article 109 of the Highway Traffic Law. According to the relevant law article: “Claims for compensation for material damages arising from motor vehicle accidents are limited within 2 years starting from the date the injured party learns about the damage and the indemnity obligor, and in any case within 10 years starting from the day of the accident.”
According to this provision, it can be said that the period of limitation will be calculated starting from the date of the accident or from the moment the vehicle owner learns about the damage to his/her vehicle and the responsible party. In cases where the insurance company makes a partial payment, the period of limitation will be interrupted.
Where Can Claims Regarding Damages Caused by an Accident in Turkey by a Vehicle with a Foreign License Plate Be Asserted?
Claims arising out of damages caused by an accident in Turkey involving a vehicle with a foreign license plate must first be submitted in writing to the relevant insurance organization. Optional rights cannot be exercised before the written application process to the insurance company is completed. As a result of the written application to the insurance company, if the insurance company receives a negative response or if no response is received within 15 days, the vehicle owner’s optional right arises. The vehicle owner may assert his/her claims regarding the damage he/she has suffered through litigation, or may also apply to the Insurance Arbitration Commission. However, the claimant must choose between applying to the Insurance Arbitration Commission and filing a lawsuit. It is not possible to file a lawsuit and apply to the Commission, nor is there any legal benefit for the claimant here.
- Application to the Insurance Arbitration Commission
As stated in Article 30, paragraph 13 of the Insurance Law, a written application must be made to the relevant insurance institution before applying to the Insurance Arbitration Commission. An application to the Insurance Arbitration Commission may be made upon the partial or full rejection of the claim by the relevant insurance organization or the failure of the relevant organization to respond within 15 business days. In terms of filing a lawsuit, a similar provision regarding traffic insurances is included in Article 97 of the TCC. According to this provision, a written application must be made to the relevant insurance organization before filing a lawsuit, and if the organization does not respond within 15 days or rejects the request, a lawsuit can be filed or an application can be made to the Insurance Arbitration Commission. The difference between these two legal provisions is that the Insurance Law provides for a period of 15 business days, while the Road Traffic Law provides for a period of 15 days. The requirement to apply to the relevant insurance organization is not a condition regarding the birth of the receivable. Since a receivable that is not due and payable cannot be claimed and sued, the application requirement in question is not a litigation requirement that can be completed later. Therefore, in any case, the requirement to apply to the relevant insurance institution must be fulfilled before filing a lawsuit or applying to the commission.
A person who fulfills the condition of applying to the insurance organization and receives a negative response or does not receive a response within 15 business days (15 days for disputes arising from the Road Traffic Law), If the applicant prefers to apply to the Insurance Arbitration Commission instead of filing a lawsuit, the applicant must pay an application fee of 100 TL if the amount of the dispute is up to 5,000 TL, 250 TL if the amount is between 5,001 TL and 10,000 TL, 350 TL if the amount is between 10,001 TL and 20,000 TL, and 1.5% of the amount of the dispute, i.e. at least 350 TL, if the amount is 20,001 TL or more.
- Litigation Procedures
The person who prefers to file a lawsuit instead of applying to the Commission may file his/her lawsuit at the Commercial Court of First Instance where the commercial headquarters or branch of the relevant insurance company or the agency that concluded the insurance contract subject to the dispute is located, or at the Commercial Court of First Instance where the accident subject to the dispute occurred or where the owner of the vehicle has his/her residence in Turkey.
- Difference between Application to the Insurance Arbitration Commission and Litigation Procedure
It is possible to say that the most important difference between filing a lawsuit and applying to the Insurance Arbitration Commission is the duration of the dispute resolution. Indeed, if a lawsuit is filed, it may take several years for the case to be finalized. However, according to Article 30/16 of the Insurance Law, the arbitrators of the Insurance Arbitration Commission are obliged to resolve the dispute within 4 months. In this sense, it is seen that the dispute is resolved more quickly at the Insurance Arbitration Commission.
Which Documents Need to be Gathered in the Event of a Related Traffic Accident?
After the traffic accident in question has occurred, certain documents will need to be collected and prepared in order to apply for legal remedies. The documents to be collected differ according to the outcome and consequences of the traffic accident. For example, in traffic accidents that cause only material damage, it is sufficient for the Accident Report to be signed and prepared by the parties to the accident, while in traffic accidents that cause bodily harm or death, the Accident Report must be issued by the official authorities.
For traffic accidents resulting in material damage only, a photocopy of the insurance policy, photocopies of the driver’s license and registration of the vehicle drivers, photographs of the accident scene taken without moving the vehicles involved in the accident after the accident occurred. If the traffic accident caused bodily harm, in addition to the insurance policy and photocopies of the driver’s license and registration, a medical report on the treatments suffered due to bodily harm, documents (such as invoices) for treatment expenses that have a causal link with the accident, a doctor’s report proving this issue if the bodily harm caused by the accident has caused incapacity for work, or a committee or doctor’s report on this issue if there is a permanent disability. For traffic accidents causing death, in addition, documents such as the death examination report, documents showing the income of the person, certificate of inheritance, population registration sample should also be collected and prepared.
As can be seen, the documents required to apply for legal remedies vary depending on the outcome of the accident.
Where Should I Report the Damage Caused by the Accident?
In the event of an accident in Turkey with a foreign-registered vehicle registered abroad, if the driver of the foreign-registered vehicle is at fault, then the damage caused by the accident must be reported to the Turkish Motor Vehicle Bureau; if it is the Turkish-registered vehicle that is at fault, then it must be reported to the insurance company in Turkey. If the vehicle with Turkish license plates has a motor insurance policy, then it is also possible to report the damage to the motor insurance company in the country in which the vehicle is registered.
Atty. Abdulvahit KAYA
Atty. Beste EVİN
Atty. Oğulcan AKMİL