Turkey Overhauls Earthquake Insurance Rules for Property Sales

Millions of property owners and buyers in Turkey are affected by new regulations concerning Compulsory Earthquake Insurance (DASK). The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has published updated General Conditions for DASK, introducing significant changes to how policies are handled during property transactions.

A key alteration is the discontinuation of transferring existing DASK policies to new property owners. Previously, when a property changed hands, the seller's DASK policy could be transferred to the buyer. Under the new rules, the DASK contract automatically terminates on the date of property registration. This means the new owner must secure a new DASK policy for the property.

For policies that are now terminated due to property sales, any unused portion of the paid premium will be refunded to the original policyholder. This refund is based on the remaining days of coverage. Property registry offices or authorized administrative bodies will be responsible for verifying whether a new DASK contract exists for the subsequent beneficiary during ownership transfer processes.

However, in cases of ownership change not involving a sale, such as inheritance, the DASK contract will continue with the new beneficiary. The new owner is then obligated to notify the insurance company within 15 days of becoming aware of the contract's existence. The insurance company or agent must issue the policy with the relevant addendum for the change of beneficiary within 24 hours of receiving this notification. These changes to the General Conditions for Compulsory Earthquake Insurance will take effect 15 days after their publication date.