Insurer refused or underpaid your claim? The Insurance Arbitration Commission

What the Commission is

The Insurance Arbitration Commission (Sigorta Tahkim Komisyonu) was established under the Insurance Law (No. 5684) to resolve disputes between insurers and people claiming under a policy. It hears disputes about traffic insurance, motor own-damage (kasko), property, health and other policies issued by insurers that are members of the system.

It is an alternative to the courts, not an additional step. Once you choose arbitration for a dispute, you generally cannot bring the same claim to court.

Before applying

You must first apply to the insurance company in writing. You can go to the Commission if the insurer refuses the claim, pays only part of it, or does not reply within the period that applies. Keep the claim letter, the insurer's answer and proof of delivery, because the Commission checks this first.

How the process works

The application is made with a form and the supporting documents, and an application fee is paid. The amount depends on the value of the claim. The file is assigned to an arbitrator who usually decides on the documents and, where needed, appoints an expert. Most files are concluded within a few months, which is much faster than ordinary litigation.

Above a certain value, either side can appeal the arbitrator's award to an appeal panel within the Commission, and in some cases further review by the courts is possible. Below that value, the award is final.

Advantages and limits

Arbitration is fast, specialised and relatively inexpensive. Its limits are that only the insurer can be the respondent and that claims outside the policy, such as non-pecuniary damages against the driver, must be pursued elsewhere. Choosing between arbitration and court therefore depends on who you need to claim from and for what.