Insurance firms could face big fines

ISTANBUL - Hürriyet Daily News

Insurance firms which balk at insuring commercial vehicles could be fined. Hürriyet photo

Insurance companies who balk at insuring commercial vehicles due to higher risks now face fines of up to 50,000 Turkish Liras if they charge exorbitant insurance fees, according to daily Zaman.

Owners of commercial vehicles such as taxis or minibuses are often faced with insurance premiums ten times higher than the base price by insurance providers, if they are insured at all.

“Mandatory traffic insurance has become like a second tax for drivers,” said the Confederation of Turkish Craftsmen and Tradesmen (TESK) President Bendevi Palandöken, who explained that TESK had applied to the Undersecretariat of the Turkish Treasury to ensure that those insurance companies who avoid insuring commercial vehicles would be fined between 10,000 and 50,000 liras, as per the law.

“Mandatory traffic insurance should only legally be 2.5 times greater than the base price, and even for this there needs to be a specific reason. Those insurance companies who raise premiums without a sufficient reason should be fined. All insurance companies need to be aware of this when providing their policies,” Palandöken said.