Vehicle Depreciation Application Guide: Insurance, Arbitration and Litigation

Short answer: Vehicle depreciation compensation is claimed against the at-fault driver's compulsory motor third-party liability (MTPL) insurer. The process runs in five steps: (1) gather documents, (2) submit a written claim to the insurer, (3) wait the statutory 15 business days, (4) if denied or under-paid, apply to the Insurance Arbitration Commission (SİTAH), and (5) where necessary, file suit before the Commercial Court of First Instance. The limitation period under art. 72 of the Code of Obligations is two years from learning of the damage and the tortfeasor, and ten years at the latest.

Core conditions for a depreciation claim

• The other driver must be at fault, in whole or in part.
• The vehicle must generally be under 165,000 km and under 15 years old (assessed under the General Terms of the MTPL Policy; exceptions exist).
• The vehicle must not have prior heavy-damage, write-off or scrap records.
• Repairs should use original spare parts; non-OEM parts may reduce the depreciation calculation.
• Repair invoices and damage photographs must be preserved.

Step 1: Collect the required documents

Preparing a complete file in advance prevents the insurer from rejecting the claim for missing information:

• Accident report and traffic-incident notification form.
• Vehicle registration, driving licence and ID photocopies.
• Repair invoice and service report (parts/labour breakdown).
• Pre- and post-repair photographs.
• Loss-adjuster report or copy of the damage file.
• At-fault party's MTPL policy information (agent, policy number).
• Bank IBAN.

Step 2: Submit the claim to the insurer

The written claim is filed with the company that issued the at-fault driver's Compulsory MTPL policy. Under art. 30 of the Insurance Act no. 5684 and the General Terms of the MTPL policy, the insurer must — within 15 business days of the application — either accept coverage or issue a reasoned denial. No suit or arbitration may be filed within this period.

Step 3: Loss adjustment and depreciation assessment

The insurer appoints its panel adjuster to inspect the vehicle. The report records the loss amount, nature of repair and depreciation figure. If the claimant considers the report insufficient, an independent expertise report may be obtained to present an alternative calculation. In Court of Cassation case-law, the Insurance Association of Türkiye's depreciation formula and TÜVTÜRK or court-appointed expert reports are typically taken as a basis.

Step 4: Application to the Insurance Arbitration Commission

If the insurer denies the claim or pays an insufficient amount, an application may be filed with the Insurance Arbitration Commission under art. 30 of the Insurance Act no. 5684. The process generally concludes within 4-6 months; awards in disputes below TRY 40,000 are final. Above this threshold, an objection lies to the appellate arbitrator and, if conditions are met, to the Court of Cassation (the threshold is updated annually).

Step 5: Litigation

Instead of arbitration, a claim may also be filed directly before the Commercial Court of First Instance. Under art. 72 of the Code of Obligations, the suit must be filed within two years of learning of the damage and the tortfeasor, and at most ten years from the date of the incident. The court appoints an automotive expert from the local chamber-of-commerce panel; the judgment is subject to regional appellate review and, where applicable, cassation.

Frequently Asked Questions

What if I am partially at fault?

Compensation is still payable, reduced by your fault share. For instance, where you are 25% at fault, 75% of the calculated depreciation is awarded. The fault ratio is determined on the basis of the accident report, any prosecution file and the loss-adjuster / court-expert assessments.

How long does payment take?

If the insurer accepts the claim within the 15-business-day window, payment is usually completed in 3-4 weeks. Arbitration runs 4-6 months; court proceedings 6-18 months. Once the judgment becomes final, enforcement may be initiated to collect the award.

Does selling the vehicle defeat the claim?

No. The depreciation claim crystallises on the date of the accident; subsequent sale of the vehicle does not extinguish the right to compensation. However, the difference between the sale price and the appraised value should be supported by concrete evidence.

Related pages

• Istanbul Vehicle Depreciation Lawyer — main practice page.
• Application Process
• Required Documents
• Expertise Report
• Litigation Process
• Fault Ratio
• Depreciation Calculator — for an initial estimate.

Legal notice

This guide is for general information purposes only and does not constitute legal advice. Each file must be assessed on its concrete factors — vehicle age and mileage, severity of damage, fault ratio, insurance policy and repair quality — and no specific outcome is guaranteed. For advice on your application, contact Av. Burak Koçak via our contact page.