Compensation of Vehicle Depreciation
Vehicle depreciation is the decrease in the material value that occurs between the preceding and post-accident even if the damage to the vehicle is eliminated after an accident.
Party to Claim Loss of Value:
1-The Party Requesting Loss of Value must not be 100% at fault.
When a traffic accident occurs, the determination of defects of the parties is first carried out in the accident report by describing the form of accident and the road sketch.
The report can also be issued with mutual agreement of the parties involved in the accident if there is a traffic accident only with material damage. It is important that the issues written in the agreed accident report are correct. Because, on the basis of this report, the parties will use their rights. If the parties do not want to prepare the report with mutual agreement or if there is an accident involving death and personal injury, an accident report is prepared by the law enforcement authorities.
The accident report prepared by the law enforcement officers or the parties is also the basis for the expert reports taken by the courts and insurance commissions in the disputes that arise.
2-The vehicle damaged as a result of the accident must not be written-off (heavily damaged).
There is no loss of value in the vehicles that have been written-off because the vehicle has been scrapped.
With the amendment made in 2021 to the Traffic Insurance General Conditions for the claim of value depreciation in vehicles, the mileage limit of the vehicle has been removed.
The Compensation of Value Depreciation can be claimed by the party who is not 100% at fault in the accident and the party whose vehicle has not been written-off.
Respondents of the Value Depreciation Claim:
- Compulsory Automobile Liability Insurance (Traffic Insurance) Policy Insurer of the vehicle found to be at fault in the accident,
- The owner of the vehicle found to be at fault in the accident,
- The driver of the vehicle at fault in the accident,
- If the vehicle that is at fault in the accident has a Comprehensive Insurance Policy and a Discretionary Liability Insurance Clause in the Comprehensive Insurance Policy, the Insurer of Comprehensive Insurance.
It is mandatory by law for a vehicle in traffic to have a Compulsory Automobile Liability Insurance (Traffic Insurance) Policy. In this respect, an application can be made against the insurance company that issued the Compulsory Automobile Liability Insurance (Traffic Insurance) policy of the vehicle that is at fault in the occurrence of the accident within the limits of the insurance policy. The Traffic Insurance Policy Insurer must cover this loss within the limits of the policy in case of detection of value depreciation as a result of the application for loss of value.
Although it is mandatory by law for a vehicle to have a Compulsory Automobile Liability Insurance (CALI) Policy, it is usual that there may be vehicles that go out to traffic without Traffic Insurance. In this case, a lawsuit will be filed against the driver of the defective vehicle and the vehicle owner who caused the accident.
When the CALI policy limits of the vehicle that caused the accident are not sufficient, this claim can be made through a lawsuit against the owner and the driver of the defective vehicle.
Finally, in case the CALI policy limits of the vehicle that caused the accident are not sufficient but if there is a discretionary liability insurance clause in the comprehensive coverage, the elimination of value depreciation within the framework of this clause may be requested from the insurer of comprehensive insurance.
Ways to Claim a Value Depreciation:
1-Application to Compulsory Automobile Liability Insurance (Traffic Insurance) Policy Insurer of the Vehicle Defective in the Accident
The first process to be made is to apply to Compulsory Automobile Liability Insurance (Traffic Insurance) Policy Insurer. In the CALI General Terms, a number of documents required for the request for a Value Depreciation are specified. These are; accident report, photographs of the damaged vehicle, license of the damaged vehicle, driver’s licenses of the parties, damage appraisal report, if any, etc. Along with the documents, an application petition must also be sent to the insurance company.
It is obligatory to apply to the insurance company and as a result of this application, the Insurance Company must make a determination of the loss of value within 15 days after the receipt of the application and notify that to the applicants. This is regulated in accordance with the provisions of 97th Section of Highway Traffic Law. If the insurance institution does not respond to the application in writing within 15 days at the latest from the date of application or if there is a dispute that the response does not meet the demand, the injured person may file a lawsuit or apply for arbitration within the scope of the Law Number 5684.
The insurance company pays the loss of value within the coverage limits of CALI policy. If the payment of loss of value is lower than the normal value depreciation or if this application remains inconclusive by the insurance company, an application should be made to the Insurance Arbitration Commission or a lawsuit will have to be filed.
2-Lawsuit Against the Owner and Driver of the Vehicle Whose are Faulty in the Accident
If Compulsory Automobile Liability Insurance (Traffic Insurance) Policy coverages of the vehicle that caused the accident are not sufficient, a lawsuit can be filed against the vehicle owner and the driver of the vehicle in accordance with the provisions of the tort.
3-Application to Comprehensive Insurer Company in case the vehicle that found defective in the accident has a Discretionary Liability Insurance Clause in its Comprehensive Insurance Policy
In the event that the vehicle that caused the accident with its defect has a comprehensive policy insurer, if there is a Discretionary Liability Insurance Clause in comprehensive insurance policy, the opportunity to apply to Comprehensive Policy insurer will arise if the application for loss of value is rejected due to the fact that the application to CALI Policy Insurer does not fall within the coverage limits.
CALI Policy coverage limits are updated by the government every year and are fixed. In this respect, it may not be possible to completely eliminate the damage + loss of value of the vehicle under CALI policy. In this case, these claims may be made against the comprehensive insurance company or the vehicle owner and driver for the parts that fall outside the coverage limits.
The application procedure to the Comprehensive Insurance Agency is the same as the application to CALI Policy Insurer. If the application is not concluded within 15 days or is incomplete, an application an application can be made to the Insurance Arbitration Commission or a lawsuit may be filed against the Comprehensive Insurance Company.
Prescription Period for Value Depreciation Claim:
Claims for vehicle depreciation pursuant to 72nd Section of the Code of Obligations Number 6098 expire within 2 years from the date of being aware of the damage and the indemnity obligation and within 10 years from the date of the accident.
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