Property insurance
In Turkey, there are two types of insurance policies for properties. These are the compulsory earthquake insurance and other non-compulsory property insurance.
Compulsory: DASK (The Turkish Catastrophic Insurance Pool-TCIP) has been established by the virtue of Decree Law no:587 in order to write compulsory Earthquake Insurance and to do the other tasks given by the Decree. Compulsory Earthquake Insurance is underwritten by TCIP. The insurance companies are authorised to sign insurance agreement with the name and account of TCIP. In Turkey, Compulsory Earthquake Insurance is mandatory for all houses except for the buildings which belong to public establishments and the buildings constructed on village settlement areas.
Non-compulsory: Other property insurance types can be freely bought from the market and they cover some risks including theft and fire. Foreigners are permitted to conclude property insurance contract in Turkey. There are no legal restrictions for foreigners to buy all insurance types. Additionally, real persons and legal entities are obliged to buy insurance policies from the insurance companies operating in Turkey. The Insurance companies must have a licence to operate in Turkey. Those companies are not treated differently in terms of capital requirement whether they are domestic or foreign. It is possible to establish an insurance company in Turkey with %100 foreign capital.
Traffic (motorists) insurance
Motor vehicle owners have to buy a compulsory traffic insurance policy. A person must not use a motor vehicle on a road unless there is insurance cover on that vehicle ias required by the Roadt Traffic Act.
