The financing model is ex-ante.

The fund’s revenue comes from compulsory insurance premiums. 1% of total premiums from insurance companies and 2% of net premiums from policyholders. In 2024, this amounted to around 141 million USD.

In addition to insurance premiums, the fund also earns from subrogation rights, investment incomes such as state bonds and interest from state banks, and unclaimed funds of policyholders.

Güvence Hesabı is established as the statutory guarantee fund of Türkiye. It operates under Insurance Association of Türkiye (TSB) as a private law entity, the fund performs a public function and is subject to the supervision of the Insurance and Private Pension Regulation and Supervision Authority (IPRSA).

No we don’t.

Insolvency is when an insurer cannot meet its financial obligations.  License revocation means the authority stops the insurer from operating, either because of insolvency or financial distress in order to maintain policyholder protection. In both cases, Güvence Hesabı is only responsible of the claims under compulsory insurances determined by law.

Güvence Hesabı has handled 12 insolvent companies so far. Within this framework, Güvence Hesabı’s authority is limited to policyholder protection, while the declaration and liquidation process is conducted by the Court.
Güvence Hesabı has paid out 234 million USD in compensation so far.

Policyholders regarding insolvent insurance companies must be submitted to the Güvence Hesabı. For insurance companies whose licenses have been revoked in all branches, policyholders must be submitted directly to the company itself. The company receiving the application prepares the claim file and forwards it to the Güvence Hesabı.

According to the law, Güvence Hesabı does not cover motor own damage (casco) insurance in cases of insolvency and/or license-revoked companies, as it is not a compulsory insurance.

Güvence Hesabı operates within a limited framework determined by the Authority, mainly focusing on portfolio management and has been appointed by the Authority to serve on the boards of two insolvent insurance companies.

Under our legislation, the Council of Ministers is authorized to double the premium if necessary, ensuring continuous coverage for policyholders.

In accordance with our legislation, compulsory liability insurance for liquefied petroleum gas (LPG) cylinders covers bodily injury caused by the use, storage or transportation of LPG cylinders.

The Fund does not cover:
•    Non-pecuniary damages.
•    Damages to the owner or driver of the at-fault vehicle.
•    Damages caused by individuals who steal or seize a motor vehicle, those who assist them, and drivers or passengers who knowingly ride in such a vehicle.
•    Damages claimed against persons for whose acts the vehicle owner is liable.
•    Compensation claims filed by the vehicle owner.
•    Damages from accidents involving a motorized bicycle.
•    Damages to persons while the vehicle is in the custody of motor vehicle professionals.

Under the coverage exclusions, policyholders may take legal action against the driver and the vehicle owner in accordance with the law.

We send an official letter to the public prosecutor’s office requesting that we be informed if the liable party of the case is identified. If the liable party (driver/operator) is found, we pursue recourse against liable party.

Beneficiaries must make their claims to Güvence Hesabı within 2 years from the date they became aware of the damage and the liable party, and in any case, within 10 years.

Güvence Hesabı has only limited authority to notify the relevant authorities for the monitoring of compulsory insurance.

Güvence Hesabı has only limited authority in this area. Within its mandate, it informs the relevant authorities about uninsured vehicles, supports awareness campaigns on compulsory motor insurance, and cooperates with public institutions to promote compliance.