How to Object to an Insurance Policy Cancellation in Turkey

An insurer's unilateral cancellation or termination of a policy can leave the insured without cover at a moment they did not anticipate, so it is important to know the circumstances and manner in which this decision can be made.

Termination for Unpaid Premiums

Under Article 1441 of the Turkish Commercial Code (TTK), if the insurance premium is not paid on time, the insurer sends a formal notice granting the insured a period to pay the outstanding premium; if payment is not made within that period, the contract is deemed terminated as of the date stated in the notice. A notice not properly sent is a ground that can be raised to challenge the validity of the termination.

Termination for Failure to Report an Increased Risk

If a change increasing the risk occurs during the insurance period and the insured fails to notify the insurer, the insurer may terminate the contract within a specified period. For this right to be exercised, the deadline running from when the insurer became aware of the increased risk must not have been missed.

Withdrawal for Breach of the Disclosure Obligation

Where the disclosure obligation at the time the contract was concluded is intentionally breached, the insurer may exercise its right to withdraw from the contract. Withdrawal produces different consequences from termination; in particular, whether compensation is payable where the insured risk materialised before the withdrawal must be assessed separately.

Routes for Objecting to a Cancellation Decision

If the insured believes the stated ground for cancellation or termination is not lawful, they can first raise a written objection with the insurer. If this does not resolve the matter, they can apply to the Insurance Arbitration Commission or file suit, supported by evidence that the premium was paid on time or that the increased risk was properly reported.

Practical Recommendations

Keep records of your premium payment dates and receipts; if you receive a formal notice, take care not to miss the final payment deadline. If you learn your policy has been cancelled, request the letter stating the grounds for cancellation and assess with a lawyer whether those grounds actually match the facts of your case.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.