Has your insurance claim been rejected in Turkey? Learn how policyholders can challenge insurance claim denials, dispute exclusions, demand compensation, apply to Insurance Arbitration and pursue legal remedies in 2026.

An insurance company’s rejection of a claim does not necessarily mean that the policyholder has lost the right to compensation. Insurance disputes in Turkey frequently arise because insurers and policyholders disagree about the meaning of policy exclusions, the cause of the loss, notification obligations, the amount of damage, alleged underinsurance, medical necessity, liability or whether the particular event falls within the insured risk.

For foreign residents, tourists, investors, property owners and international companies, challenging a rejection can appear particularly difficult because the insurance documents and claims process are governed by Turkish law. Nevertheless, foreign nationality does not itself prevent a policyholder or other person entitled under an insurance contract from pursuing available remedies.

The correct strategy is usually to identify exactly why the insurer rejected the claim, determine whether that reason is supported by the policy and applicable rules, preserve the necessary evidence and select the appropriate dispute-resolution procedure.

One particularly important remedy is Turkey’s Insurance Arbitration system. The Insurance Arbitration Commission provides a specialized procedure for qualifying disputes arising from insurance contracts and is designed to resolve such disputes through independent insurance arbitrators. (Sigorta Tahkim Komisyonu)

Why Do Insurance Companies Reject Claims in Turkey?

Insurance companies can reject claims for many different reasons. A rejection may be based on an exclusion contained in the policy, an allegation that the insured event occurred outside the coverage period, insufficient documentation, late notification, an allegation that the claimant breached contractual obligations, disagreement over causation or an argument that the particular loss simply falls outside the scope of coverage.

Some disputes do not involve a complete rejection at all. The insurer may acknowledge coverage but disagree with the amount claimed.

For example, an insurer may accept liability for vehicle damage but dispute diminished value. A property insurer may acknowledge fire damage but offer significantly less than the actual reconstruction cost. A commercial insurer may pay for physical damage but reject business interruption losses.

The first step is therefore determining whether the dispute concerns coverage, liability, causation or valuation.

Step 1: Obtain the Rejection in Writing

A policyholder should obtain the insurance company’s position in writing whenever possible.

A telephone statement from an employee saying that the claim is not covered provides very little information for challenging the decision.

The written rejection should be examined to determine the precise reason for non-payment.

If the insurer relies on an exclusion, identify the exclusion.

If it alleges late notification, determine when notification actually occurred.

If it alleges insufficient evidence, determine what evidence is allegedly missing.

If it disputes causation, determine which technical conclusion supports its position.

The dispute becomes significantly easier to analyze once the insurer’s reasoning has been reduced to identifiable legal and factual issues.

Step 2: Obtain the Complete Insurance Policy

Do not evaluate the rejection using only the policy certificate.

The complete insurance documentation may include General Conditions, special conditions, endorsements, additional coverage, exclusions, deductibles, limits and sub-limits.

These documents should be read together.

A claim cannot properly be evaluated merely from the commercial name of the insurance product.

Two policies marketed under similar names can provide materially different protection.

Step 3: Identify the Exact Exclusion

If the insurer relies on an exclusion, the policyholder should ask a simple question:

Which exact contractual provision excludes this loss?

The next question is equally important:

Why does that provision apply to what actually happened?

Insurance disputes frequently turn on this connection between policy language and factual causation.

The existence of an exclusion somewhere in the policy does not itself establish that the exclusion applies to the particular loss.

Step 4: Determine the Actual Cause of the Loss

Causation is one of the most important issues in insurance law.

Consider a property insurance claim involving water damage.

Was the damage caused by a sudden pipe rupture, gradual leakage, flooding, defective construction or failure to maintain the building?

Those different causes can have very different insurance consequences.

The same issue arises with machinery failures, fires, electronic equipment losses and commercial property claims.

Where the insurer’s rejection depends on technical causation, an independent expert assessment may be necessary.

Step 5: Preserve Evidence Immediately

Evidence can disappear quickly after an insured event.

Damaged property may be repaired. Vehicles may be sold. Machinery components may be replaced. CCTV recordings may be overwritten. Buildings may be reconstructed.

Policyholders should therefore preserve photographs, videos, invoices, repair quotations, medical documentation, expert reports, official records and correspondence.

The objective is to create a chronological record showing:

what happened, when it happened, what was damaged, why the event falls within coverage and how much compensation is claimed.

Step 6: Challenge an Allegation of Late Notification

Insurers sometimes reject claims because they allege that the policyholder failed to notify the loss correctly or promptly.

The claimant should reconstruct the timeline.

When did the incident occur?

When did the policyholder learn about it?

When was the insurer notified?

Was an insurance agent or broker informed?

Was a claim number created?

Emails, correspondence, claim forms and delivery records should be preserved.

A policyholder should not automatically assume that every alleged notification problem necessarily eliminates the entire claim. The contractual and legal consequences must be evaluated according to the circumstances.

Step 7: Challenge Incorrect Policy Exclusions

An insurer may characterize an event in a way that places it within an exclusion.

The policyholder may have evidence supporting a different characterization.

For example, an insurer may describe property deterioration as gradual maintenance damage while the claimant alleges that a sudden insured event caused the loss.

In such cases, technical evidence becomes critical.

The challenge should directly address the insurer’s reasoning rather than merely state that the decision is unfair.

Step 8: Challenge Allegations of Poor Maintenance

Poor-maintenance allegations commonly arise in property, machinery and commercial insurance disputes.

The policyholder should preserve maintenance contracts, inspection records, repair invoices and technical documentation.

An independent expert may also be necessary to determine whether the alleged maintenance failure actually caused the loss.

The existence of an old building or machine does not by itself establish the cause of a particular insured event.

Step 9: Challenge an Unfairly Low Settlement

A policyholder does not necessarily have to accept the insurer’s first valuation.

A low settlement can potentially be challenged where the evidence supports a higher loss.

The claimant should investigate repair costs, replacement costs, market value, depreciation, deductibles, policy limits and any underinsurance calculation.

Independent quotations and valuation reports can be particularly useful.

Step 10: Vehicle Damage and Diminished Value Claims

Traffic insurance disputes frequently involve more than repair expenses.

A vehicle may lose market value because its accident and repair history affects its resale price.

Where legally recoverable, diminished value should therefore be considered separately from physical repair costs.

The claimant should preserve accident records, repair invoices, vehicle information, photographs and valuation evidence.

Step 11: Challenge a Total Loss Valuation

Another common dispute concerns vehicles classified as total losses.

The disagreement may concern the pre-accident market value of the vehicle or the methodology used by the insurer.

Comparable vehicles, equipment specifications, mileage, condition and market evidence may become important.

A policyholder should ask the insurer to explain how the proposed valuation was calculated.

Step 12: Bodily Injury Insurance Claims

Insurance rejection becomes particularly serious when the underlying event caused personal injury.

Traffic accidents can result in medical expenses, temporary incapacity, permanent disability, loss of earnings and other potentially recoverable losses.

Medical documentation should be preserved from the beginning.

A claimant should also be cautious about settling a serious bodily injury claim before the long-term medical consequences are sufficiently understood.

Step 13: Foreign Income and Loss of Earnings

Foreign claimants may earn their income outside Turkey.

Where loss of earnings is legally relevant, the claimant may need employment contracts, salary statements, tax documentation, employer confirmations and bank records.

The fact that income is earned abroad does not eliminate the need to calculate the loss accurately.

Cross-border evidence should be organized carefully.

Step 14: Property Insurance Rejections

Foreign property owners may encounter rejected claims involving fire, water damage, flooding, theft or other insured risks.

The insurer may allege an exclusion, inadequate maintenance, prolonged vacancy or late discovery.

The owner should preserve evidence concerning the property’s condition before and after the event.

Where structural damage is significant, engineering evidence may be required.

Step 15: Fire Insurance Rejections

Fire claims can involve multiple forms of damage simultaneously.

Direct burning may be accompanied by smoke, heat and water damage caused during firefighting.

A policyholder should therefore document the entire property.

If the insurer disputes the cause of the fire, official fire documentation and independent technical evidence can become especially important.

Step 16: Commercial Insurance Rejections

Foreign-owned businesses can face substantially more complicated disputes.

A factory fire, machinery failure or warehouse incident may cause physical damage, inventory destruction and interruption of operations.

The insurance portfolio should therefore be reviewed as a whole.

Property damage, machinery coverage and business interruption protection may arise under different provisions or policies.

Step 17: Business Interruption Claims

A business may remain closed long after the damaged property has been repaired.

Where appropriate coverage exists, the financial claim may require accounting evidence concerning revenue, expected profits, continuing expenses and additional operating costs.

Financial statements, tax records, sales data and management accounts may become essential.

A business interruption claim should therefore be prepared as a financial claim rather than simply an extension of the property damage calculation.

Step 18: Professional Liability Insurance Rejections

Professional liability disputes can arise where an accountant, auditor, engineer, architect, valuation professional or consultant allegedly causes financial loss.

These disputes require two separate analyses.

First:

Is the professional legally liable for the loss?

Second:

Does the professional liability insurance cover that liability?

A strong professional negligence claim does not automatically mean that the insurer must provide coverage.

Step 19: Health Insurance Rejections

Private health insurance disputes may involve exclusions, waiting periods, pre-existing conditions, medical necessity or whether a treatment falls within policy coverage.

The insurer’s rejection should be compared carefully with the medical records and complete policy.

A doctor’s recommendation and contractual insurance coverage are related but separate issues.

Step 20: Travel Insurance Rejections

Foreign tourists may encounter rejected claims involving medical treatment, baggage, travel interruption or other insured events.

The policyholder should preserve travel documents, invoices, medical reports and communications with the insurer.

Where the insurance contract was issued outside Turkey, governing law and jurisdiction may also require separate analysis.

Formal Written Objection to the Insurance Company

Before escalating the dispute, a detailed written claim or objection should generally be submitted to the insurer.

The objection should identify the policy, insured event, insurer’s rejection, disputed policy provision, supporting evidence and compensation requested.

Technical reports should be attached where causation is disputed.

Financial documentation should support claimed losses.

The objective should be to transform the disagreement into a precise, documented coverage or compensation dispute.

This step is also important because an application to the Insurance Arbitration Commission generally requires the claimant first to apply to the relevant insurer. (Sigorta Tahkim Komisyonu)

Insurance Arbitration as a Legal Remedy

Insurance Arbitration can provide an important alternative to ordinary court litigation.

The Insurance Arbitration Commission was established under Insurance Law No. 5684 to resolve qualifying disputes arising from insurance contracts through independent insurance arbitrators. Applications are generally examined on the written file, although a hearing can be held where the arbitrator considers it necessary. (Sigorta Tahkim Komisyonu)

This can make arbitration particularly attractive for clearly documented insurance disputes.

When Can a Policyholder Apply to Insurance Arbitration?

The claimant must first submit the dispute to the insurance organization.

According to the Commission’s current procedure, where the insurer’s final response does not satisfy the claim, or where the insurer does not provide a written response within 15 business days, the claimant may proceed to the Commission if the remaining jurisdictional requirements are satisfied. For compulsory traffic insurance, the Commission states the relevant waiting period as 15 days. (Sigorta Tahkim Komisyonu)

This makes proof of the original insurer application extremely important.

Which Documents Are Required?

The Commission currently identifies several core documents for an application, including the applicable application form for physical applications, identification, proof of payment where required, the insurer’s final negative response or evidence that the applicable response period expired, the original application submitted to the insurer, a clear statement explaining the dispute and documents supporting the claim. (Sigorta Tahkim Komisyonu)

The complete insurance policy should also be included where available.

Check Whether the Insurer Participates in the Arbitration System

For voluntary insurance policies, membership can be important.

The Commission advises claimants to verify that the relevant insurance organization participates in the arbitration system and that the insured event occurred after the applicable membership date. (Sigorta Tahkim Komisyonu)

Compulsory insurance is subject to separate rules. The Commission states that qualifying disputes concerning compulsory insurance arising after April 18, 2013 can be submitted regardless of whether the relevant organization is a member of the Commission. (Sigorta Tahkim Komisyonu)

This distinction should be checked before filing.

Special Rules for Foreign Policyholders

Foreign nationals can potentially use Insurance Arbitration, but an important procedural distinction currently applies.

The Commission states that foreign nationals can make only physical applications because the online system uses national digital identity verification. Foreign applicants must complete the required application form and submit it physically together with the supporting documentation. (Sigorta Tahkim Komisyonu)

A passport or other qualifying identification document can be used as part of the application documentation. (Sigorta Tahkim Komisyonu)

This is especially relevant for foreign tourists and property owners who may no longer be physically present in Turkey when the dispute develops.

Can a Lawyer Represent a Foreign Policyholder?

Potentially, yes.

The Commission states that applications made through an attorney require a power of attorney containing specific authority concerning alternative dispute resolution or direct application to the Insurance Arbitration Commission under the applicable procedural requirements. (Sigorta Tahkim Komisyonu)

Foreign claimants planning to pursue proceedings from abroad should therefore ensure that representation documents are properly prepared.

How Long Does Insurance Arbitration Take?

The Commission states that applications first undergo preliminary examination by its rapporteurs, which must generally be completed within 15 days.

Where the case proceeds to an insurance arbitrator or panel, a final decision must generally be issued within four months, although the period can be extended with the parties’ express written consent. (Sigorta Tahkim Komisyonu)

This procedural structure is one reason Insurance Arbitration may provide an attractive alternative to ordinary litigation for suitable cases.

2026 Insurance Arbitration Fees

The fee schedule changed during 2026, so older information should not be relied upon.

A revised tariff became effective on July 16, 2026, replacing the tariff that had applied from January 1.

The current application fees are:

Up to TRY 8,500: TRY 600
TRY 8,501–17,000: TRY 1,200
TRY 17,001–85,000: TRY 1,750
TRY 85,001 and above: 1.8% of the disputed amount, subject to a minimum of TRY 1,750. (Sigorta Tahkim Komisyonu)

The same tariff applies to objection applications.

The Commission also currently charges notification expenses of TRY 75 where the applicant provides a valid registered electronic mail address and TRY 325 where one is not provided. (Sigorta Tahkim Komisyonu)

Because tariffs can change, the current amounts should always be verified at the filing date.

Can an Insurance Arbitration Decision Be Challenged?

Depending on the amount in dispute, yes.

Under the Commission’s current 2026 information, arbitration decisions involving disputes below TRY 35,000 are final. Decisions involving disputes of TRY 35,000 or more may be challenged once through the Commission’s objection procedure.

Where an objection is properly filed, the case is assigned to a three-member Insurance Arbitration Appeal Panel. The Commission states that the panel must decide the objection within two months.

For disputes exceeding TRY 383,000, decisions rendered following the objection procedure may be taken to the Court of Cassation. (Sigorta Tahkim Komisyonu)

The applicable monetary threshold is determined according to the rules in force when the relevant application is made. (Sigorta Tahkim Komisyonu)

Can the Policyholder Go Directly to Court?

Court proceedings remain an important legal remedy where Insurance Arbitration is unavailable or inappropriate.

However, forum selection should occur before proceedings are initiated.

The Commission states that it will not consider disputes that have already been brought before a court, consumer arbitration body or arbitration under the general civil procedure framework. (Sigorta Tahkim Komisyonu)

A policyholder should therefore avoid beginning proceedings in one forum without understanding the consequences for another.

Arbitration or Court: Which Is Better?

There is no universal answer.

Insurance Arbitration can be particularly effective where the dispute is principally between the claimant and insurer and can be demonstrated through documents and expert evidence.

Court proceedings may be more appropriate where the dispute involves several defendants, complicated contractual relationships, extensive witness evidence or claims extending beyond the insurance contract.

The correct forum should be selected according to the structure of the individual dispute.

What If Several Parties Are Responsible?

An insured event can create claims against parties other than the insurer.

A property fire might have been caused by a contractor.

A defective product might cause commercial damage.

A workplace accident might involve several responsible entities.

A traffic accident may involve both insurance compensation and liability claims against responsible persons.

The policyholder should therefore map all potential claims rather than treating insurance as the only source of recovery.

Do Not Sign a Final Release Too Early

One of the most important practical precautions concerns settlement documents.

An insurer may offer partial payment in exchange for a release.

Before signing, determine whether the document settles only a particular component of the claim or releases every potential claim arising from the incident.

This is particularly important in serious personal injury, commercial interruption and major property damage cases where the final financial consequences may not yet be known.

Do Not Allow Negotiations to Continue Indefinitely

Settlement negotiations can be valuable.

However, negotiations should not cause the policyholder to overlook limitation periods or procedural deadlines.

Statements such as “the file is still under review” should not automatically be treated as protecting the claimant’s legal rights indefinitely.

Applicable deadlines should be identified early in the dispute.

A 20-Step Strategy for Challenging an Insurance Rejection in Turkey

A policyholder facing an insurance rejection should generally:

1. Obtain the complete insurance policy.
2. Obtain the insurer’s rejection in writing.
3. Identify the precise reason for rejection.
4. Identify the exact exclusion or contractual clause relied upon.
5. Determine the actual cause of the insured event.
6. Preserve photographs and videos.
7. Preserve official incident documentation.
8. Preserve invoices and repair quotations.
9. Obtain medical records for bodily injury claims.
10. Obtain independent technical evidence where necessary.
11. Calculate each category of loss separately.
12. Examine deductibles and policy limits.
13. Check any underinsurance calculation.
14. Submit a detailed written objection to the insurer.
15. Preserve proof that the objection was delivered.
16. Consider settlement without signing an unnecessarily broad release.
17. Determine whether Insurance Arbitration is available.
18. Prepare the complete arbitration evidence file.
19. Evaluate any available objection procedure after an arbitral decision.
20. Consider court proceedings where arbitration is unavailable or inappropriate.

The strongest challenge is not simply an assertion that the insurance company acted unfairly. It is a documented argument demonstrating why the policy covers the event, why the insurer’s rejection is legally or factually incorrect and exactly how much compensation remains unpaid.

Frequently Asked Questions

Can an insurance company rejection be challenged in Turkey?

Yes. Depending on the circumstances, the policyholder may challenge the insurer directly and consider Insurance Arbitration or court proceedings.

What should I do first after receiving an insurance rejection?

Obtain the decision in writing and identify the exact policy provision and factual reason relied upon. The complete policy should then be reviewed against the circumstances of the loss.

Can I challenge a low settlement even if the insurer did not reject the entire claim?

Potentially, yes. A dispute may concern the amount of compensation rather than coverage itself. Independent valuation and technical evidence can be particularly important.

Do I have to contact the insurance company before applying to Insurance Arbitration?

Yes. The Commission requires the claimant first to apply to the relevant insurance organization. If the final response does not satisfy the claim, or the applicable response period expires without a written response, arbitration may become available subject to the remaining requirements. (Sigorta Tahkim Komisyonu)

Can foreigners apply to the Insurance Arbitration Commission?

Potentially, yes. Foreign nationals currently use the physical application procedure rather than the ordinary online application system. (Sigorta Tahkim Komisyonu)

Can a foreigner use a passport for the application?

Yes. The Commission’s current instructions recognize a passport or another qualifying identification document for this purpose. (Sigorta Tahkim Komisyonu)

How quickly can Insurance Arbitration produce a decision?

The Commission states that preliminary examination generally must be completed within 15 days and that arbitrators generally have four months to issue the final decision once the file is referred to them, subject to the possibility of extension with the parties’ written consent. (Sigorta Tahkim Komisyonu)

Can an arbitration decision be challenged?

Depending on the amount in dispute, yes. Current 2026 thresholds provide an objection procedure for qualifying disputes and further judicial review for certain higher-value cases. (Sigorta Tahkim Komisyonu)

Can I go to court instead of Insurance Arbitration?

Depending on the dispute, court proceedings may be available and may sometimes be strategically preferable. The appropriate forum should be determined before proceedings are initiated.

What evidence is most important when challenging an insurance rejection?

The insurance policy, insurer’s written rejection, proof of the insured event, technical or medical evidence, photographs, invoices, expert reports and a clear calculation of the unpaid compensation are generally among the most important documents.

Client-Focused Legal Support for Rejected Insurance Claims in Turkey

An insurance rejection should be evaluated as a legal and evidentiary decision rather than simply accepted as the insurer’s final word. The first task is identifying the exact basis for the refusal. The policy wording should then be compared with the actual cause of the loss and the available technical, medical or financial evidence.

This distinction is especially important for foreign policyholders. A rejected traffic accident claim may require medical and vehicle evidence. A property insurance dispute may turn on technical causation. A commercial claim may require both engineering and accounting analysis. A professional liability dispute may require separate examination of professional negligence and insurance coverage.

Insurance Arbitration can provide an important alternative to lengthy ordinary litigation in qualifying cases. Under the Commission’s current procedure, cases are principally examined on the written record, with preliminary examination generally completed within 15 days and arbitrators generally required to issue their decision within four months after referral. (Sigorta Tahkim Komisyonu)

Fırat Fesih Kaya Law Office assists foreign individuals, investors, property owners and international businesses with rejected insurance claims, low settlement disputes, traffic accident compensation, vehicle diminished value, permanent disability claims, property and fire insurance disputes, health and travel insurance claims, commercial insurance, professional liability insurance, Insurance Arbitration and insurance litigation in Turkey.

Foreign policyholders living outside Turkey may still be able to pursue appropriate proceedings through properly authorized legal representation. Early preservation of the policy, rejection letter, expert reports and loss documentation can significantly affect the strength of the claim.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yıldırım Tower, Balgat, Çankaya, Ankara, Turkey