How to Determine the Loss of Vehicle Value? What are the Legal Remedies to Apply?
Claims for compensation for material damages arising from motor vehicle accidents shall be time-barred within two years from the date the injured party learns of the damage and the indemnity obligor, and in any case within ten years from the date of the accident.
As a result of accidents occurring in traffic, damage records of vehicles are created, and the value of vehicles with damage records is less than the undamaged vehicle during the sale. This is called "loss of vehicle value". Loss of vehicle value can be claimed from the driver, owner and Compulsory Financial Liability Insurance of the other party involved in the accident. However, since it is easier to obtain compensation from the insurance company, the insurance company is usually held responsible.
Determination of the damage
In accordance with the established case law, the loss in value of the vehicle is the difference between the value of the vehicle before the accident and the value of the vehicle after the accident, which will be determined according to the facts such as the brand, model year, mileage and whether the vehicle was involved in an accident before the accident, the location of the repaired parts and damaged parts due to the accident. In order to determine the loss of value, it is important to obtain the expert report as soon as the vehicle is repaired after the accident.
Legal Remedies to Apply
The person whose vehicle is damaged as a result of a traffic accident must apply to the Compulsory Financial Liability Insurance of the other party before filing a lawsuit. This application obligation is regulated under Article 97 of the Road Traffic Law and the regulation is as follows: "The injured party must make a written application to the relevant insurance institution before filing a lawsuit within the limits stipulated in the compulsory financial liability insurance." It is as follows. If the insurance company does not respond to the application in writing within 15 days from the date of application or if the application request is not accepted with the response given, the injured party must either apply to the Insurance Arbitration Commission or file a lawsuit.
Documents Required for Application to the Insurance Company
Although the documents required during the application vary from insurance company to insurance company, the documents generally requested are listed below;
1. Loss of value claim form
2. Photographs taken at the time of the accident and damage photos
3. Appraisal report
4. Photocopy of the license of the insured vehicle
5. Turkish ID Number and Tax Number of the owner of the damaged vehicle
6. Bank account details of the owner of the damaged vehicle
7. If followed by a lawyer, a copy of the power of attorney, the IBAN information and T.R. ID number of the attorney
8. Copy of the license of the damaged vehicle.
In case the Insurance Company does not accept the application, the requirement to apply to the mediator before filing a lawsuit
If the insurance company does not respond to the claim of the injured party, or if the insurance company responds but does not accept the claim, the injured party may either file a lawsuit or apply to the Insurance Commission for compensation. If a lawsuit will be filed in the Commercial Court of First Instance as explained below, the mediation process must be completed before filing a lawsuit. Pursuant to Article 5/A of the Turkish Commercial Code, application to mediation is a condition of litigation.
If the injured party will not file a lawsuit, but will apply to the Insurance Arbitration Commission, then the mediation process is not mandatory. The person may apply directly to the Insurance Arbitration Commission.
In case the Insurance Company refuses to accept the application, if a lawsuit is to be filed, the Competent and Authorized Court
In case of a lawsuit against the insurance company;
If the lawsuit for compensation arising from the loss of value of the vehicle will be directed only to the insurance company, the competent court is the Commercial Courts of First Instance. Also, if the lawsuit is directed to the insurance company together with the driver, owner or operator of the vehicle, the competent court is the Commercial Courts of First Instance. The competent court is the court of the place where the traffic accident occurred, the place of residence of the injured party, the place where the headquarters of the insurance company is located or where the Regional Directorate of the Insurance Company is located.
If a lawsuit is filed against the driver or owner of the vehicle involved in the accident;
If the lawsuit for compensation arising from the loss of vehicle value will be directed only to the driver, owner and operator of the vehicle, in other words, if the insurance company will not be a party to the lawsuit, the competent court is the Civil Courts of First Instance. The competent court is the court where the traffic accident occurred, the settlement of the injured party or the settlement of the defendant.
Statute of Limitations
Pursuant to Article 109/1 of the Highway Traffic Law No. 2918, claims for compensation for material damages arising from motor vehicle accidents are time-barred within two years from the date the injured party learns of the damage and the indemnity obligor, and in any case, within ten years from the day of the accident.
