Certain respects such as (i) maximum premiums relating to mandatory traffic insurance, (ii) monthly rate of increase pertaining to the mandatory traffic insurance premiums and (iii) commission rates to be paid to insurance agencies within the scope of the Circular no. 2017/1 which was published on 10 April 2017 by Undersecretariat of Treasury.
Maximum premium amounts relating to the mandatory traffic insurance based upon the vehicle types were specified within the Table-1 which was designated as an appendix to the Circular.
An increase rate of 1% as of May 2017 was designated for the maximum premium amounts specified within the table.
Furthermore, it was specified within the Circular that the minimum amount of commission rates to be paid to the insurance agencies by the insurance companies would be 10%.
It was designated within the scope of the Sector Announcement no. 2017/1 that was published on 10 April 2017 by Undersecretariat of Treasury that in case of the circumstances designated within the scope of first paragraph of Article 11 of the Regulation on Fundamentals Relating to the Application of Tariffs and Instructions on Highways Motors Mandatory Liability Insurance, namely in the event that the operator of the vehicle—who is a party to the existing traffic insurance contract—changes, the existing traffic insurance contract shall automatically terminate as of the date on which the change occurs and that a return of premium on pro-rata basis shall be made to the concerned party.
It was set out by the Sector Announcement that for the cases outside the scope of the circumstances designated within the above-mentioned Article 11/1, the mandatory traffic insurance contracts concluded before the effective date of the Sector Announcement, which is 12 April 2017, may not be terminated and that no new contracts may be concluded.
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