The new Insurance Law comprises provisions as that risks not indicated in the insurance agreements are to be deemed as within the coverage, that persons having no legal connections with insurance agents may not give any information about the insurance and may not issue any insurance policies. The Insurance Law has been approved by the President of the Republic Ahmet Necdet Sezer and enforced by being published in the Official Gazette. Thus the insurance sector continuing to perform its activities under Decree Law 539 has now gained its law awaited for more than ten years.
Outstanding innovations introduced by the law are:
· By establishing an arbitration council in order to prevent that insurees are victimized, a regulation has been set - up ensuring that problems are resolved at this council without applying to the courts. This will constitute an essential improvement in the settlement of disputes between the insuree and the insurer.
· It is indicated under Article 20 of the Law that certain measures will be taken for purposes of strengthen the financial structures of the Insurance and Reassurance companies and how these measures shall be implemented. The fact that the Law will introduce financial control to the insurance sector has been received favorably.
· The minimum capital for the foundation of an insurance company has been determined as 5 Million YTL.
Through these improvements the first step towards ensuring a stronger and more dynamic structure to the insurance sector has been taken. You may use the following link to access the complete law.
http://www.sigortacilik.gov.tr/02YD/21TSM_5684/21.01-Kanun/SigortacilikKanunu.doc