How to Apply to Turkey's Insurance Arbitration Commission

The Insurance Arbitration Commission is an alternative dispute resolution mechanism designed to resolve disputes between an insured or beneficiary and an insurance company relatively faster than going to court.

Which Disputes Can Be Brought?

Under Additional Article 1 of Insurance Law No. 5684, applying to the Insurance Arbitration Commission requires that the insurance company involved in the dispute be a member of the commission; in practice this condition is generally met, as the large majority of insurers are members. Disputes in almost every insurance branch — traffic accident, motor own-damage (kasko), health, life insurance — can be brought through this route.

The Precondition: Applying to the Insurer First

Before applying to the arbitration commission, the insured must have made a written application to the insurance company regarding the dispute, and the company must have either rejected the application or failed to respond within fifteen days. An arbitration application filed without meeting this precondition is not accepted for examination.

How Does the Process Work?

The application is filed with the commission's secretariat, and the file is first forwarded to a rapporteur; if no settlement is reached between the parties, the file is referred to an arbitrator or arbitration panel. The process tends to conclude in a shorter time than general court proceedings.

The Binding Effect of Decisions

Arbitrator decisions below a certain amount are final and cannot be objected to. Decisions above that amount can be challenged before the objection arbitration panel within the Insurance Arbitration Commission. The objection panel's decision is final and enforceable.

Arbitration or Litigation?

Instead of applying to the arbitration commission, the insured may also choose to file a lawsuit directly; arbitration is not mandatory but an option at the insured's discretion. For disputes involving relatively low amounts and technically clear issues, however, arbitration can offer speed and cost advantages.

Practical Recommendations

Keep your application to the insurance company, and any rejection letter, on file — these documents prove the precondition for the arbitration application has been met. Assessing with a lawyer, based on the amount and nature of the dispute, whether arbitration or litigation is more suitable helps avoid choosing the wrong process.

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