What is Insurance Law?

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Insurance law is the branch of law that regulates the rights and obligations of the parties in the insurance relationship to each other, the insurance relationship, and what to do when a dispute arises between the parties.

Regulations related to insurance law are included in Insurance Law No. 5684 and Turkish Commercial Code No. 6102.

What is Insurance?

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The basis of the insurance is the idea of protection against the damages that individuals may encounter as a result of various events.

Insurance can be expressed as the solidarity of people in a similar risk group and sharing the loss. Persons in the insurance system make premium payments at once or throughout the year. Payments made by the insured accumulate in a common pool. The loss of the insured is compensated with the premiums accumulated in the pool. Thus, all insured share the risk of loss.

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Elements of the insurance system:

• community of persons exposed to danger (hazard participation),

• The event (risk) that is likely to be encountered in the future and to cause harm,

• The persons forming the group are faced with the same or similar risk,

• Elimination of the damage resulting from the occurrence of the risk (insurance coverage),

• Making a payment (premium) in order to benefit from the insurance,

• The insured has the right to claim in order to benefit from this protection.

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What is an accident?

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These are the events accepted by the insurer that their losses can be remedied. Events such as fire, earthquake, frost, death, traffic accident are considered as accidents in insurance.

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What is the Risk?

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Damage due to accidentThe possibility of death is called danger or risk. In order for an event to be considered a risk in terms of insurance, it must be uncertain whether it will occur or not when it will occur.

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What is Premium?

It is the money paid to the insurer in certain periods in return for the service received by the insured. The higher the risk ratio, the higher the premium to be paid.

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What is Insurance Compensation?

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In the event of the realization of the risk, the money envisaged to be paid by the insurance company to the insured or the person authorized legally or to the insurance creditor is called insurance compensation. Insurance compensation can never exceed the insurance value of the insured property.

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What are the Functions of Insurance?

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In our daily life, insurance has a great importance in social and economic life for individuals and society. Individuals guarantee their future with insurance.

Insurance contributes to the country's economy due to the assurance it provides to individuals. Insurance plays a role in the protection of labor and capital, which is the source of national income.

Insurance provides to get rid of the risks that may occur with the least damage. For this reason, the complete disappearance of commercial enterprises is prevented and it contributes to the development of economic life.

If the businesses that want to take a loan have their business insured, their demand will be met more quickly by the bank.

Insurance gives people the opportunity to save money. Namely, if a person who took out life insurance had saved the money he paid to the insurer, he would not have achieved the same result.

Since the premiums collected by insurance companies are very high, they also play a role in the development of the country's economy and capital markets.

insuranceIt has an international character because the risk in bitterness is distributed over the widest possible area.

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In line with what has been explained above, the functions of insurance can be listed as follows:

• Insurance provides assurance to individuals.

• It protects capital and labor; prevent a decrease in national income.

• It provides confidence and stability in commercial activities.

• It makes it easier for businesses to meet their credit requirements.

• It helps people save money.

• It contributes to the development of the country's economy.

• Thanks to its international nature, it allows commercial activities to spread abroad.

What are the Parts of Insurance Law?

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Insurance law is basically divided into two as social insurance and private insurance.

Social insurances are the insurances that are compulsory for the provision of social security of certain public groups such as workers, civil servants and pensioners, which are established by law and offered to the society through public institutions. Social insurances are subject to their own legal provisions, unless there is a special provision in their own laws, the provisions of the Turkish Commercial Code are not applied. Social Security Institution (SGK) and Army Solidarity Institution (OYAK) can be given as examples of social insurances established in our country.

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Private insurance is the risk insurance that individuals create voluntarily in order to secure their private interests against dangers. According to the Turkish Commercial Code No. 6102, private insurances are divided into two as “loss insurances” and “life insurances”. Loss insurance "property insurance" and "liability insurance"life insurances are divided into three as “life insurance”, “accident insurance” and “sickness and health insurance”.

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Property insurance, also called loss or indemnity insurance, is made against risks threatening individuals or organizations. With this type of insurance, it is aimed to indemnify the loss suffered by the insured.

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Insurances that aim to secure people against dangers such as death, illness, accident, disability are called life insurances.

The insurance that guarantees the ship and cargo against possible risks that may occur at sea is called "marine insurance". However, the provisions of marine insurance are not applied in the insurances against the dangers to people in passenger transportation by sea. All insurances other than marine insurance are “land insurances”. With the Law No. 6102, the distinction between marine and land insurance in the old Commercial Code was abandoned and marine insurance provisions were removed from the Law.

Muhammed Sarikaya Law Firm

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