Building Insurance As Per the Loss Types
We would like to remind you that you can get you building insured in accordance with the criteria as required by the loss categories even if it was damaged in a previous earthquake.
We can sum up the afore-mentioned criteria as follows:
Damaged buildings are classified in three sections as "Light-Medium-Heavy" by the T.R. Ministry of Environment and Urban Planning.
Buildings with Heavy Damage: It is not possible to hold insurance cover for buildings which are decided by the official institutions to be demolished and established as "heavily damaged".
Buildings with Medium Damage: The insurance of this category has the requirement of repairing and/or reinforcing the buildings; it is only possible after the submittal of official documents showing that these procedures are fulfilled. The document in question is the conformity certificate given by the Ministry of Public Works and Settlement which indicates that the building is in a "habitable" status.
Lightly Damaged – Not Damaged Buildings: During the insurance of these buildings, the statement of the insured is taken as basis and the insurance policy is given in accordance with this statement.
Indemnity Payment Process
When calculating the indemnity for Compulsory Earthquake Insurance, the up-to-date cost of re-building the building with the current market conditions in the place where the hazard occurred and on the exact date is taken as basis.
In addition to this, the indemnity can not be more than the insured sum that is defined in the policy. On each loss, "deductible" at the rate of 2% of insured sum is applied.
In the current procedure, the claim notifications made directly by the insured or via the authorized insurance companies are assessed by TCIP and a loss file is opened, and loss adjusters are appointed for loss assessment.
The indemnity amount – which is determined according to the General Conditions of Compulsory Earthquake Insurance - is transferred to the bank branches in the settlement area - where the loss occurred – via EFT to name/Money order". The ownership of the damaged building and policy is checked via these bank branches, and the indemnity payment is made to the related claimants.