A new era begins in traffic insurance. From now on, premiums will be calculated according to the cost index every month. Premiums determined according to this index will be reflected to the insured starting from May. Insurance companies will be able to increase traffic insurance premiums by up to 3 percent. The main reason for these increases is the high rates of increase in the cost of damages.
DAMAGE-COST INDEX
In traffic insurance, premiums are determined according to vehicle groups, provinces and damage history of drivers, according to the ceiling determined by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), that is, the state. SEDDK also determines the price increase rate to be made to the ceiling price every month, and companies can increase traffic insurance premiums every month at these rates if they wish.
SEDDK recently increased monthly premium increases to 10 percent in both January and February. In March and April, the monthly increases were determined as 5 percent. With the new application, this period in traffic insurance has been closed and the damage cost index application has started. Again, the state will determine the premiums in traffic insurance, but monthly price increases will be determined according to the damage cost index. An application such as construction cost index and food price index will be implemented. The most important element of the index is the minimum wage and the increase in the minimum wage. Since there will be no interim increase in the minimum wage, premium increases will remain at these levels. If SEDDK does not use its authority and increase the rate determined according to the damage cost index, there will be an increase rate in favor of the consumer.
BASED ON TURKSTAT DATA
SEDDK will determine the damage cost index in traffic insurance every month according to the increase in the minimum wage, the vehicle price increase rate, and the change in damage repair and spare parts prices. These data are announced by the Turkish Statistical Institute (TUIK). SEDDK will create an index every month according to the data announced by TURKSTAT, and according to this index, the premium increase in the next month’s traffic insurance will be determined. In order to avoid being victimized in accidents, insured people must complete their compulsory insurance, vehicle insurance and traffic insurance and get their policies.
