The Regulation on Distance Insurance and Consumer Insurance Contracts Has Been Published

The Insurance and Pension Regulation and Supervision Agency (“Agency”) published the Regulation on Activities to be Evaluated under Insurance Services and on Distance Insurance Contracts (“Regulation”) on 16 June 2021 in the Official Gazette No. 31513.

The Regulation defines activities that fall under consumer insurance services and insurance agreements. In addition to these, it regulates distance insurance agreements and the scope of insurance provided together with the sale of goods and services. You can read the Regulation here (available in Turkish only).

The Regulation covers similar provisions included in the Regulation on Activities to be Evaluated under Insurance Services, on Insurance Contracts Concluded in Favor of the Consumer and on Distance Insurance Contracts and repeals it. Transactions currently performed under the repealed regulation should comply with the Regulation by 1 September 2021. 

Here are some of the important changes introduced by the Regulation:

  • The scope of insurance that can be provided together with the sale of goods and services includes insurance related to travel and insurance against damage and theft in connection with sales of devices such as computers, tablets, mobile phones, and white goods,
  • Excluding insurance providing extended warranties, the maximum insurance period of five years is reduced to two years in relation to insurance provided in connection with the sale of goods and services,
  • Excluding insurance provided in connection with the sale of goods and services, insurance companies and other authorized companies are banned from selling insurance through electronic mediums except for their own websites, mobile applications, etc.