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The new regulation details the rules on the insurances that can
be provided linked to goods and services offered by businesses
whose primary business activity is not insurance brokerage which is
becoming to stand out in practice.

As per the new regulation, business processes carried out under
the abolished regulation will be required to be compliant with the
new Regulation by 1 September 2021.

Accordingly, with the new regulation, insurance intermediaries,
banks and institutions incorporated under special laws and
authorized to act as insurance agents, and individuals and entities
providing a commercial environment for insurances linked to goods
and services have been explicitly included to the scope of the

In addition, insurance companies and pension companies providing
insurance coverage have been prohibited to transfer their
obligations to bear risk and pay indemnification upon occurrence of
risk which constitute the primary obligation of the insurance
contract, except for reinsurance contracts.

Novelties With Respect to Distance Insurance Contracts

Products and activities of insurance companies and pension
companies that provide insurance coverage cannot be sold through
electronic commercial environments that are used for marketing and
sale of goods and services, excluding the electronic commerce
environments of insurance companies and pension companies providing
insurance coverage, insurance intermediaries and banks and
institutions established by special laws and authorized to act as
insurance agent. The latter prohibition is not applicable to the
insurance products that are linked to the sale of goods and
services. However, such authorized institutions are allowed to
place advertisements and publications in such environments.

The new regulation have abolished the requirement for those
concluding a distance insurance contract to use the 3DSecure
application in collections made with debit or credit card which was
obliged by the former regulation . With the new regulation, it is
stipulated that authorized institutions are under the obligation to
ensure necessary and sufficient security measures by creating
processes in accordance with the Bank Cards and Credit Cards Law
dated 23/2/2006 and numbered 5464, Payment and Securities
Settlement Systems, Payment Services and Electronic Money dated
20/6/2013 and numbered 6493, and secondary legislation during the
collection of premium pertaining to the distance insurance
contracts .

Insurances Offered Linked to the Sale of Goods and

The most fundamental changes are made under this section.
Accordingly, electronic device, machinery breakdown and theft
insurance linked to the sale of devices such as computers, tablets,
mobile phones and home appliances, electronic device can only be
offered under the following conditions:

a) The insurance shall be complementary to
the goods or services sold and be purchased together with the
above-mentioned devices or related to the same device after the

b) The annual premium of the insurance
shall not exceed the amount that will be calculated by increasing
TL 3,000 by taking into consideration the annual change of the
Consumer Price Index compared to the December of the preceding

c) The coverage period shall be maximum
two years, excluding insurances that provide extended warranty

Insurance for travel-related risks can be provided on the
website or mobile application of the passenger transportation
service providers, provided that such insurance is sold is along
with the ticket sale or afterwards related to the same ticket after
the sale.

The following explanations should be included with the visuals
to be placed in places that can be seen by the customer if the
insurance is offered in a store, or , through the link accessible
to the customer if it is offered in an electronic commerce

a)The insurance company or the pension company
providing insurance coverage,

b)The subject and scope of the insurance, and
the explanation that in case of occurrence of the risk, the
insurance indemnity shall be paid by the insurance company
undertaking the risk or the pension company providing insurance
coverage as per the insurance legislation.

c)Where to access the additional information on
the provided insurance.

The insurance premium can be collected together with the goods
sold in order to be transferred to the insurance company. In this
case, the amount of the insurance premium shall also be indicated
on the payment receipt. In case the premium is paid in cash or with
a bill of exchange, a premium collection receipt shall also be
given to the insurant through a printed or permanent data storage.
Such payment is deemed to have been made to the insurance

Within this scope, the authorized institutions are obliged to
inform the Insurance and Private Pension Regulation and Supervision
Agency (“Authority“) one month prior to
the commencement of the above. The Authority may request changes in
implementation in cases where it deems necessary, without prejudice
to the administrative sanction decision.

Voluntary Guarantees

Voluntary guarantees, which were not considered as insurance
activities under the former regulation, are also excluded from
insurance activities under the new regulation. Nevertheless, it is
regulated that the voluntary guarantees cannot be promoted,
marketed or sold with words and signs that might create the
impression of insurance. Likewise, it is clarified that activities
such as compensation of the damage arising from the risks within
the scope of insurance risk, such as replacement, repair, and
refund of the goods and/or any of its parts outside the scope of
the warranty certificate, are among the activities that is
considered as insurance activity.

It is also pointed out that, if an insurance product is given as
a gift to the insured in a service package in insurance contracts
concluded in favor of the consumer, the premium amount of the said
insurance product cannot be collected directly or indirectly from
the consumer under any name.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.