Has your insurer paid less than your actual loss in Turkey? Learn how policyholders can challenge an underpaid insurance claim, obtain an independent expert assessment, demand additional compensation, claim interest and pursue insurance arbitration or court proceedings in 2026.

An insurance company’s payment does not necessarily end an insurance claim in Turkey. If the insurer pays only part of the compensation legally due under the policy, the policyholder, insured person or other entitled claimant may potentially demand the remaining insurance compensation together with applicable interest and, depending on the case, related recoverable amounts.

This issue frequently arises in motor insurance, comprehensive vehicle insurance, property and fire policies, workplace insurance, cargo insurance, machinery insurance, liability policies and other commercial insurance disputes.

Typical disputes involve an insurer paying significantly less than the actual repair cost, undervaluing a total-loss vehicle, applying excessive depreciation, excluding part of the damaged property, using an incorrect market value or relying on a policy exclusion that does not actually justify the reduction.

Under Turkish insurance law, the central question is not simply:

“How much did the insurer decide to pay?”

The real question is:

“How much was legally payable under the policy and applicable insurance law?”

If the correct figure is higher, payment of the first amount does not necessarily prevent a claim for the difference.

What Is an Underpaid Insurance Claim?

An insurance claim is underpaid when the insurer recognizes the insured event but calculates or pays compensation below the amount actually due.

For example, assume a commercial property suffers TRY 4,000,000 in covered fire damage.

The insurer accepts coverage but pays only TRY 2,500,000.

If the remaining TRY 1,500,000 was improperly excluded from the loss calculation, the insured may have a claim for the unpaid balance.

The dispute is therefore not necessarily about whether coverage exists.

It may instead concern valuation.

Why Do Insurance Companies Underpay Claims?

Underpayment can result from many different disagreements.

An insurer may argue that certain repairs are unnecessary, the insured property was already depreciated, some damage existed before the insured event, the policyholder was underinsured, a deductible applies, the claimed business interruption period is excessive or part of the loss falls outside policy coverage.

The insurer may also rely heavily on its appointed loss adjuster’s calculation.

But an insurer’s internal calculation or expert report is not automatically conclusive in a later dispute.

Does Accepting a Partial Insurance Payment Prevent Further Claims?

Not necessarily.

Receiving money from the insurer should not automatically be confused with legally abandoning every remaining claim.

The exact circumstances of the payment must be examined.

A crucial distinction exists between simply receiving an undisputed amount and signing a document intended to settle, release or discharge the insurer from further liability.

Therefore, before signing documents containing wording such as full settlement, final settlement, release, discharge or waiver, the claimant should understand the legal consequences.

What If the Insurer Calls the Payment “Final”?

The insurer’s description does not by itself necessarily determine the legal result.

Whether the claimant has effectively waived additional rights depends on the document signed, applicable mandatory rules, circumstances surrounding the payment and nature of the insurance relationship.

A claimant who disputes the valuation should preferably make that position clear.

For example:

“The payment is accepted only as partial payment, without prejudice to our rights concerning the remaining insurance compensation.”

The precise wording should be adapted to the case.

How Is the Correct Insurance Compensation Determined?

The starting point is the insurance contract.

The policyholder should examine the policy schedule, general conditions, special conditions, endorsements, insured values, deductibles, limits, exclusions and any co-insurance or underinsurance provisions.

The physical and financial loss must then be calculated.

This frequently requires technical expertise.

A disagreement of several million Turkish lira may ultimately turn on whether the insurer’s expert used the correct replacement value, market price, repair methodology or depreciation percentage.

The Insurer’s Expert Report Is Not the Final Word

This is one of the most important points for policyholders.

Suppose the insurer’s expert determines that machinery damage is TRY 3 million.

An independent engineering assessment concludes that restoring the machinery to its pre-loss condition requires TRY 5.2 million.

The policyholder is not necessarily required to accept the insurer’s TRY 3 million assessment merely because it appears in an expert report.

The calculation can be challenged through contrary technical evidence and, where necessary, expert examination during arbitration or litigation.

Independent Expert Evidence Can Be Critical

In substantial underpayment disputes, obtaining an independent technical assessment early can be decisive.

Depending on the loss, evidence may include repair estimates, photographs, videos, invoices, replacement quotations, engineering reports, accounting records, stock records and market-value studies.

For business interruption claims, financial records may be even more important than physical-damage reports.

Historical turnover, gross profit, fixed expenses, production data and interruption periods may determine the actual recoverable loss.

Can the Insurer Reduce Compensation Because of Depreciation?

Sometimes depreciation is legally and contractually relevant.

But an insurer cannot necessarily apply an arbitrary percentage simply because the damaged property was used.

The applicable policy provisions and nature of the insured property must be examined.

Vehicle disputes provide a common example.

A dispute may arise concerning replacement parts, labour charges, market value or whether deductions used by the insurer accurately reflect the covered loss.

What Is Underinsurance?

Underinsurance can significantly reduce compensation.

Turkish Commercial Code Article 1462 regulates underinsurance (eksik sigorta).

If the insurance amount is lower than the value of the insured interest when the risk occurs, proportional reduction principles can become relevant where the statutory conditions apply.

This means that a policyholder claiming TRY 10 million cannot simply look at the physical damage.

The insured value and actual value of the property may also have to be compared.

However, the insurer’s underinsurance calculation itself can be challenged if the values used are incorrect.

What If the Insurer Uses the Wrong Market Value?

This frequently occurs in total-loss cases.

Suppose a vehicle is destroyed and comparable vehicles were worth approximately TRY 2,000,000 immediately before the accident.

The insurer values the vehicle at TRY 1,550,000.

That TRY 450,000 difference may become the core of the dispute.

Comparable sales, vehicle specifications, mileage, maintenance history, optional equipment and market conditions can become relevant evidence.

The insurer’s valuation should therefore be tested rather than automatically accepted.

What About Property Insurance Claims?

Property claims can involve even larger valuation disputes.

After a fire, earthquake, flood or other covered event, disagreement may arise over:

building restoration,

machinery replacement,

stock damage,

debris removal,

professional costs,

business interruption,

and other insured expenses.

A poorly documented claim can result in substantial underpayment even where the loss itself is clearly covered.

Can Policyholders Recover Costs Incurred to Determine the Loss?

Potentially, and this point is often overlooked.

Article 1426 of the Turkish Commercial Code provides that the insurer must bear reasonable expenses incurred by the policyholder, insured or beneficiary for determining the scope of the risk and the insurer’s payment obligation, even where those expenses ultimately prove unsuccessful. (Mevzuat MTurkoglu)

Whether a particular expert, engineering or loss-determination expense is recoverable depends on the circumstances, but claimants should not automatically assume that every technical cost must remain their own burden.

When Does the Insurance Compensation Become Due?

Article 1427 TCC contains an important rule concerning maturity of insurance compensation.

In general, compensation becomes due once the insurer completes the necessary investigation following occurrence and notification of the insured event and receipt of relevant documentation; the provision also establishes an outer framework of 45 days following notification, subject to circumstances such as delays not attributable to the insurer. Life insurance is subject to a shorter statutory period.

Once the debt becomes due, Article 1427 provides that the insurer falls into default without a separate notice. (Türk Hukuk Sitesi)

This can become extremely important where the dispute continues for months.

Can the Policyholder Claim Interest on the Unpaid Difference?

Potentially, yes.

If the insurer should have paid TRY 3 million but paid only TRY 2 million, the dispute may concern not only the remaining TRY 1 million but also applicable interest.

Article 1427 expressly provides that once the insurance debt becomes due, the insurer falls into default without requiring a separate notice, and contractual provisions purporting to eliminate the insurer’s obligation to pay default interest are invalid. (Türk Hukuk Sitesi)

The correct interest rate and commencement date must nevertheless be determined according to the type of insurance, nature of the parties, applicable legislation and individual circumstances.

What If the Insurer’s Investigation Takes Too Long?

Turkish insurance law also addresses prolonged investigations.

Where the insurer’s investigation cannot be completed within three months following notification of the risk, Article 1427 contains a mechanism for an advance payment based on the rapidly ascertainable loss amount, subject to the statutory conditions. (Türk Hukuk Sitesi)

This rule can be particularly important after major industrial fires or complicated commercial losses where final adjustment may take months.

First Step: Obtain the Insurer’s Calculation

A policyholder who believes a claim was underpaid should determine exactly how the insurer reached its figure.

The claimant should identify:

the accepted loss amount,

deductions,

depreciation,

deductible,

underinsurance calculation,

policy limits,

excluded items,

and any amounts considered outside coverage.

Without understanding the calculation, it is difficult to challenge it effectively.

Second Step: Calculate the Actual Shortfall

The claim should then be quantified.

Suppose:

Actual covered loss: TRY 6,200,000
Insurer payment: TRY 4,100,000
Disputed difference: TRY 2,100,000

The claimant should explain why the TRY 2.1 million remains payable.

Simply writing “your payment is too low” is much weaker than presenting a detailed alternative calculation supported by evidence.

Third Step: Preserve All Evidence

This should happen immediately after the insured event.

Damaged property should not be unnecessarily destroyed or disposed of before adequate evidence exists.

Photographs and videos should document the condition.

Repair quotations, invoices, inventory records and correspondence with the insurer should be preserved.

Where the insurer later argues that the damage was pre-existing, contemporaneous photographs can become decisive.

Fourth Step: Challenge the Underpayment in Writing

A detailed additional-payment demand can be submitted to the insurer.

The demand should identify the policy, claim number, insured event, amount already paid, disputed calculation and additional compensation sought.

Supporting expert reports and financial documents should be attached where appropriate.

This step can also become procedurally important before pursuing insurance arbitration.

Can the Claimant Apply to the Insurance Arbitration Commission?

Potentially, yes.

The Insurance Arbitration Commission operates under Article 30 of Insurance Law No. 5684 and resolves eligible disputes arising between insurance beneficiaries and insurers participating in the arbitration system.

The Commission explains that an applicant generally must first have applied to the insurer concerning the dispute and have had the claim rejected or unresolved in the manner required by the applicable procedure. (Sigorta Tahkim)

An underpayment dispute can therefore potentially be brought to insurance arbitration where the jurisdictional conditions are satisfied.

Can the Remaining Compensation Be Claimed Through Arbitration?

Yes, where the dispute falls within the Commission’s jurisdiction.

Suppose the insured claims TRY 1,800,000 while the insurer pays TRY 1,200,000.

The arbitration dispute may focus on the remaining TRY 600,000.

The claimant should present the policy, insurer’s payment calculation, expert evidence and documents supporting the additional amount.

The arbitration process can involve technical expert examination where necessary.

Can an Arbitration Decision Be Challenged?

The applicable review mechanism depends partly on the amount in dispute and current statutory thresholds.

The Commission publishes current procedures and monetary thresholds for objections and further review. For 2026, its published guidance also sets the applicable objection fees and indicates that decisions on disputes above the relevant statutory threshold may proceed to further judicial review after objection. (Sigorta Tahkim)

Because monetary thresholds can change, the applicable figure should be checked as of the date the remedy is pursued.

Can the Policyholder Sue the Insurance Company Instead?

Depending on the type of dispute and procedural requirements, court proceedings may also be available.

Insurance disputes can involve commercial courts, consumer courts or other competent forums depending on the parties and legal relationship.

Where the action qualifies as a commercial monetary claim, mandatory mediation requirements may also need to be considered before litigation. Article 5/A TCC provides mandatory pre-litigation mediation for specified commercial claims involving payment, compensation and related monetary disputes. (LEXPERA)

Forum selection should therefore be made after determining the legal nature of the insurance relationship.

Arbitration or Court Proceedings?

Neither route is universally superior.

Insurance arbitration can provide a specialized and often comparatively streamlined mechanism.

Court proceedings may be preferable in certain complicated disputes involving multiple defendants, extensive evidence, contractual interpretation or issues outside the arbitration framework.

The correct route depends on the insurer, policy, claimant, amount and nature of the dispute.

Can Businesses Demand Additional Insurance Compensation?

Absolutely.

Underpayment disputes are not limited to individual consumers.

Factories, hotels, logistics companies, manufacturers, retailers, exporters and other businesses can face substantial disputes after insured losses.

Commercial claims may involve:

property damage,

machinery breakdown,

stock losses,

business interruption,

cargo damage,

cyber incidents,

liability exposure,

and directors and officers insurance.

In high-value claims, even a relatively small percentage difference in valuation can represent millions of Turkish lira.

Business Interruption Underpayment Can Be Especially Significant

Suppose a factory fire stops production for six months.

The insurer accepts the business-interruption claim but calculates the compensable interruption period as only three months.

The disagreement may involve projected turnover, gross profit, mitigation measures and the reasonable reinstatement period.

An accountant or forensic financial expert may therefore become as important as the engineering expert.

What About Cargo Insurance?

Cargo disputes frequently concern the extent and value of damaged goods.

An insurer may argue that only part of the shipment was damaged or that salvage value should substantially reduce compensation.

The insured may dispute those conclusions.

Bills of lading, commercial invoices, survey reports, photographs, customs documents and sale or destruction records can become essential.

Can a Foreign Policyholder Claim Against a Turkish Insurer?

Yes, subject to jurisdiction, applicable law and policy terms.

Foreign individuals and companies can hold claims against Turkish insurers.

The fact that the policyholder is foreign does not mean the insurer’s internal valuation becomes binding.

A foreign claimant should nevertheless consider Turkish procedural requirements, evidence standards, limitation periods and the correct dispute-resolution mechanism.

What If the Policy Is in Turkish but the Policyholder Does Not Understand It?

The exact contractual terms remain extremely important.

Foreign policyholders should obtain a careful legal review of the policy schedule, endorsements, general conditions and exclusions before accepting an underpayment explanation.

Insurance terminology can materially affect coverage.

Words such as deductible, indemnity period, replacement value, market value, co-insurance, underinsurance and exclusion can alter the calculation dramatically.

Can the Insurer Say “You Already Accepted Our Payment”?

It can raise that argument.

Whether the argument succeeds depends on the circumstances.

The key questions include whether a release was signed, exactly what it said, whether the payment was expressly accepted as final settlement and whether mandatory insurance-law protections affect the purported waiver.

Therefore, claimants should review settlement documents before signing them.

What If a Release Has Already Been Signed?

The claim should not automatically be abandoned.

The validity and scope of the release should be examined.

The document may not necessarily eliminate every additional claim merely because it contains the word “release.”

The amount paid, timing, wording, statutory rules and circumstances surrounding execution can all matter.

Limitation Periods Must Not Be Ignored

Insurance claims are subject to limitation rules that vary according to the nature of the claim and insurance.

For example, Turkish insurance legislation contains both general insurance-contract limitation provisions and special rules for particular liability claims. Article 1482 also establishes an ultimate ten-year period for certain claims against liability insurers arising from the insured event. (Türk Hukuk Sitesi)

Claimants should therefore determine the applicable limitation period for the specific policy rather than relying on a single general deadline.

2026 Developments Should Be Considered

Insurance regulation continues to develop in 2026. SEDDK’s current regulatory list includes, among other developments, the Insurance Adjusters Appointment Regulation dated 19 February 2026 and a June 2026 amendment concerning the Insurance Information and Monitoring Center. (SEDDK)

These developments reinforce the importance of using the current regulatory framework when dealing with claims and expert processes rather than relying on outdated insurance practice.

Example: Underpaid Vehicle Total-Loss Claim

A foreign resident’s insured vehicle is declared a total loss.

The insurer determines the pre-accident value as TRY 1.4 million.

Comparable vehicles with the same model, equipment, mileage and condition indicate a value closer to TRY 1.75 million.

The insurer pays TRY 1.4 million.

The claimant may potentially seek the TRY 350,000 difference, supported by appropriate market-value evidence, together with applicable ancillary claims.

Example: Factory Fire Underpayment

A manufacturing company suffers a major fire.

Its total covered physical loss is independently assessed at TRY 20 million.

The insurer pays TRY 13 million after applying disputed depreciation and excluding several damaged machines.

The company should analyze each deduction separately.

If the exclusions and depreciation methodology are not supported by the policy and applicable law, the remaining TRY 7 million may become the subject of an additional compensation claim.

Example: Commercial Property and Business Interruption

A hotel suffers water damage and closes for four months.

The insurer pays the physical-damage claim but significantly reduces the business-interruption compensation.

The dispute may require both technical and financial analysis.

Repair timelines can establish how long closure was reasonably necessary, while accounting evidence establishes the financial loss during that period.

A comprehensive claim should connect these two elements.

What Is the Strongest Strategy in an Underpayment Dispute?

The strongest claims are usually built around numbers and evidence, not general allegations that the insurer acted unfairly.

The policyholder should establish:

What should have been paid?

What was actually paid?

What is the exact difference?

Why is each insurer deduction incorrect?

Which policy provision supports the claimant?

Which expert or financial evidence proves the amount?

Once those questions are answered, the dispute becomes substantially easier to present in negotiation, arbitration or litigation.

2026 Legal Position in Turkey

Under Turkish insurance law, an insurer’s unilateral valuation does not necessarily establish the final amount of compensation.

The Turkish Commercial Code regulates the insurer’s obligation to pay compensation, expenses incurred in determining the scope of the loss, maturity of the insurance debt, default and other core aspects of the insurance relationship. In particular, Article 1427 provides an important statutory framework for when insurance compensation becomes due and when the insurer falls into default. (Mevzuat MTurkoglu)

Insurance arbitration under Insurance Law No. 5684 also provides an established mechanism through which eligible policyholders and beneficiaries can pursue disputes against participating insurers after satisfying the required preliminary application procedure. (Sigorta Tahkim)

Accordingly, an insurer paying less than the claimed amount should not automatically be treated as the end of the matter.

The policyholder should calculate the legally recoverable loss, compare it with the payment already received and pursue the unpaid difference through the appropriate legal mechanism.

Frequently Asked Questions

1. Can I demand more money after accepting an insurance payment?

Potentially, yes. Receiving a partial payment does not necessarily eliminate a claim for the remaining amount. Any release or final-settlement document must be examined separately.

2. Is the insurer’s expert report binding on me?

Not necessarily. The insurer’s valuation can be challenged with contrary technical, financial or market evidence.

3. Can I obtain my own expert report?

Yes. Independent expert evidence can be particularly valuable where the dispute concerns repair costs, market value, depreciation, business interruption or the extent of physical damage.

4. Can I claim interest on the unpaid insurance compensation?

Potentially. Article 1427 TCC regulates maturity and provides that the insurer falls into default once the insurance debt becomes due, without requiring a separate notice. (Türk Hukuk Sitesi)

5. Can I apply to the Insurance Arbitration Commission?

Potentially, if the dispute and insurer fall within the arbitration framework and the preliminary application requirements are satisfied. (Sigorta Tahkim)

6. Can foreign policyholders use Turkish insurance arbitration?

Foreign nationality does not by itself prevent an entitled claimant from pursuing available Turkish insurance remedies. Jurisdiction and the applicable policy relationship should nevertheless be checked.

7. Can a business recover an underpaid insurance claim?

Yes. Companies can pursue additional compensation for covered property damage, machinery losses, stock, cargo, business interruption and other insured losses.

8. What if the insurer claims I was underinsured?

The calculation should be examined carefully. Article 1462 TCC regulates underinsurance, but whether and how proportional reduction applies depends on the insured value, actual value and circumstances.

9. Should I sign the insurer’s settlement document?

Not before understanding whether it contains a release, waiver or final-settlement provision affecting additional compensation claims.

10. What evidence is most important in an underpayment case?

The policy, claim file, insurer’s calculation, expert reports, photographs, invoices, quotations, market-value evidence and correspondence are usually central. Business-interruption cases additionally require detailed accounting and financial evidence.

Legal Support for Underpaid Insurance Claims in Turkey

An underpaid insurance claim can involve much more than simply requesting the insurer to reconsider its offer. High-value disputes often require a detailed examination of policy coverage, loss valuation, expert reports, depreciation, underinsurance, exclusions, interest and procedural strategy.

Fırat Fesih Kaya Law Office provides legal assistance to Turkish and foreign policyholders in disputes involving underpaid or rejected insurance claims, property and fire losses, motor claims, cargo insurance, commercial insurance and business-interruption losses.

Where an insurer has already made a partial payment, Fırat Fesih Kaya can assess the difference between the amount paid and the compensation legally recoverable and determine the appropriate route for demanding the remaining amount through negotiation, insurance arbitration or litigation.

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