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What is Insurance & Reinsurance Law?

Insurance & Reinsurance Law is a branch of private law that deals with the regulation of insurance contracts, which protect individuals and organizations from risks, and the legal relationships related to these contracts. It also includes reinsurance, which refers to the process where insurance companies share their own risks with other insurance companies.

Nowadays, insurance is available in a wide range of areas including health, traffic, housing, workplace, agriculture, life, travel, professional liability, and more. Therefore, Insurance Law is a field that is of great relevance to both individuals and businesses.

Scope of Insurance Law

Insurance law is fundamentally based on insurance contracts. In these contracts, the parties involved are the insurer and the insured. The main areas of focus in Insurance Law include the following:

• Insurance Contracts: These involve the insurer taking on a specific risk in exchange for a premium.
• Obligations of the Insured: This includes the obligation to inform the insurer before and after the occurrence of the risk, among other responsibilities.
• Claims for Compensation: The process of compensating the insured in case the risk occurs.
• Policy Arrangements: The insurance policy serves as proof of the contract and outlines the responsibilities of both parties.
• Types of Insurance: These include mandatory insurances (such as traffic insurance) and voluntary insurances (such as comprehensive, health, and housing insurance).

What is Reinsurance?

Reinsurance is the process where insurance companies share large risks with other insurers. This helps insurers protect their assets in the case of significant losses.

• Proportional Reinsurance: The insurance company cedes a certain percentage of the risk to another company.
• Non-Proportional Reinsurance: The insurance company cedes only the portion of the loss that exceeds a certain threshold to the reinsurer.
• Facultative Reinsurance: These are individual reinsurance contracts made for each specific risk.
• Treaty Reinsurance: These are general agreements covering all risks of a specific type.

Reinsurance transactions are typically conducted on an international level. As such, international treaties and commercial practices, in addition to local regulations, are also significant.

Insurance Disputes

Insurance & reinsurance relationships can sometimes lead to disputes. These disputes typically arise in cases involving the rejection of compensation claims, interpretation of policy terms, or non-fulfillment of obligations.

• Whether the risk is covered under the policy
• Incomplete or late notifications
• Suspension of the policy due to premium arrears
• Faulty behavior by the insurance company

In such cases, the litigation process may begin. The Insurance Arbitration Commission is an important alternative for resolving such disputes quickly and practically.

Insurance Arbitration Commission

The Insurance Arbitration Commission is an alternative method created to resolve disputes between the insured and the insurer without going to court. The application to the Commission is free, and the decisions made by the Commission are binding.

• Decisions are expected to be made within 3 months.
• If the amount involved is below a certain threshold, the decisions are final; if it exceeds the threshold, an appeal is possible.
• The insurance policy must be issued by a company registered with the Turkish Insurance Association.

Conclusion

Insurance & Reinsurance Law is a vital field that ensures individuals and organizations can look towards the future with confidence by managing financial risks. Properly prepared policies, timely notifications, and expert support can prevent many disputes. Receiving assistance from an experienced lawyer in preparing contracts, analyzing policies, filing claims, and resolving disputes can help avoid the loss of rights and ensure the process progresses smoothly. Contact us for more information and consultancy services.