Insurer Delays Payment in Turkey: TCC Article 1427, the 45-Day Rule and a 50% Advance

The starting point: Article 1427(1) and the form of the payment

Article 1427(1) of Turkish Commercial Code No. 6102 provides that insurance indemnity is paid in money unless the parties have agreed to restitution in kind. The form of payment must be distinguished from the amount covered and the date payment becomes due. A promise by a repair network or an intermediary that it will organise repairs is not, without examination of the policy, proof that the insurance contract validly replaces monetary indemnity with performance in kind.

Identify whether the agreement concerns indemnity insurance, a benefit payable under life insurance, or another insurance product governed by special rules. Read the insured-interest definition, indemnity provision, policy limits, deductibles and relevant endorsements. Article 1427 does not create coverage for a risk the policy does not insure; it governs the payment duty where an obligation exists.

For overseas claimants, the practical starting package should contain the policy, insured identity, insured event, first notice, relevant loss evidence, prior payments and correspondence. Name the actual insurer and recipient of the benefit. An insurance broker’s message about an anticipated transfer cannot replace the insurer’s written decision or a verifiable banking record.

What makes the insurer’s debt due under Article 1427(2)

Article 1427(2) combines the occurrence of the risk, delivery of risk-related documents and completion of the insurer’s investigations into the moment the insurer’s payment becomes due. It also establishes an outer period tied to the notification required by Article 1446. These are components of one statutory framework, not independent promises that payment must arrive a fixed number of days after a customer sends any email.

The provision sets forty-five days after the legally relevant notice for ordinary cases and fifteen days for insurance of persons. It states that time does not run where investigation is delayed for a reason not attributable to the insurer. The insurer cannot simply create an indefinite postponement by repeatedly requesting irrelevant documents, but a claimant cannot assume the statutory clock continues identically when a genuine obstruction not attributable to the insurer prevents examination.

A legal analysis should state all relevant dates: occurrence, discovery, initial notice, documents supplied, inspection requests, investigation completion and payment. If the insurer argues that time was stopped, the particular cause and its lack of attribution to the insurer must be identified. A generic statement that the file remains ‘under review’ does not itself establish the statutory exception.

In Article 1427(2), can sigortaları means insurance of persons, not life insurance alone. Classify the particular policy before choosing the period. Article 1452(3) prevents Article 1427(2)–(5) from being changed to the detriment of the policyholder, insured or beneficiary.

Article 1446: the notice from which the statutory periods are assessed

Article 1446(1) requires the policyholder to notify the insurer without delay after learning that the insured risk occurred. This is the starting notice referred to in Article 1427. A chronological review should therefore distinguish the first risk notice from the later claim valuation and documents. A detailed expert valuation may follow the notice; it should not be represented as the first notice if an earlier valid communication exists.

Article 1446(2) addresses late or omitted notice where it increases the amount of indemnity payable, with a reduction according to fault. Article 1446(3) prevents the insurer from relying on that reduction where it already actually knew of the event. These provisions do not turn every delayed notice into an automatic rejection. The insurer’s prior actual knowledge and the effect of delay require evidence.

Preserve exact copies of the notice and transmission proof. The recipient’s identity and authorised channel matter. A message to a property caretaker or independent broker may not prove that the insurer received notice, absent proof of authority or onward communication. The file must show what was sent, when, to whom and how receipt was recorded.

Article 1447: investigations and the reasonable document obligation

After the risk occurs, Article 1447(1) requires the policyholder to provide, within a reasonable period, the information and documents necessary to determine the event and payment extent that can reasonably be expected from the policyholder under the agreement or the insurer’s request. It also addresses permitting reasonable investigation at the place of the event or other relevant premises and taking suitable measures expected of the policyholder.

The wording is not a licence for every conceivable demand. To evaluate a missing-document argument, map each request to the disputed coverage or loss question. A technical investigation of a damaged building may need site access and engineering records, while a financial claim may require the insured records and contemporaneous invoices. Distinguish documents in the insured’s control from materials held by unrelated third persons.

Article 1447(2) ties a reduction to increased payment resulting from breach of the information obligation and to fault. The insurer’s refusal to pay a claim cannot be justified merely by listing any document it would have preferred to obtain. Equally, a policyholder should not refuse proportionate inspection and then claim that the insurer’s investigation necessarily ended earlier.

Reinsurance does not remove the insurer’s obligations to its policyholder or itself confer a direct claim against the reinsurer under Article 1403(2). Waiting for a reinsurer is therefore not a substitute for identifying a legally supported reason for delaying the insurer’s own payment.

Forty-five days is not the same as guaranteed payment in every case

Article 1427(2) is often reduced in everyday discussion to ‘the insurer must pay within 45 days’. That wording is incomplete because the provision identifies both the maturity framework and the exception for delay not attributable to the insurer. It also has the shorter personal-insurance period. A careful demand uses the actual notice date and explains why the investigated event and supplied evidence satisfy the statute.

The circumstances of the case can establish that an insurer’s investigation finished earlier. In that situation, the statutory conditions concerning completed research and documents should be examined rather than automatically waiting for the outside date. A claimant should preserve evidence of the completed expert report and the insurer’s acknowledgment, not merely the passage of time.

An insurer that took months to assign an assessor may face a different analysis from one that promptly requested lawful access and was unable to inspect because the premises were closed for reasons outside its control. The issue is causation and attribution of the investigative delay. State these facts instead of declaring every unpaid claim after day 45 legally identical.

The three-month advance payment under Article 1427(3)

Article 1427(3) regulates prolonged investigations. If the investigations have not been completed within three months from the notice required by Article 1446, the insurer must pay an advance to be deducted from the eventual indemnity or benefit. The advance is based on a promptly determined amount of damage or benefit following agreement of the parties or, if they disagree, a preliminary expert appraisal commissioned by the court.

The advance must be at least fifty percent of that promptly assessed amount. The statute does not say that every claimant is automatically entitled to fifty percent of the policy’s maximum sum merely because three months have passed. The relevant assessed damage or insured benefit, the insurer’s remaining investigation and the applicable procedure must be identified.

The amount paid in advance is deducted from final insurance compensation or benefit. It is not a second indemnity payable on top of a fully settled claim. Keep a separate ledger of advance, interim settlement, contractual deductible and final payment. Avoid using the word ‘advance’ for a voluntary payment whose legal nature and conditions differ from Article 1427(3).

Agreeing on a preliminary loss amount versus applying to court

Article 1427(3) provides two routes for establishing the promptly determined amount: agreement between the parties, or, where no agreement is achieved, a preliminary expert appraisal arranged by the court. A policyholder can propose a reasoned figure backed by an independent report, but the insurer’s failure to agree does not mean the policyholder can unilaterally declare the statutory advance due in any self-selected sum.

A useful proposal identifies the insured property, damaged parts, relevant invoices and an evidence-backed preliminary loss figure. It separately lists disputes that require further investigation. A claim consisting only of a final settlement demand may not give a clear basis for a statutory advance calculation. Evidence of a genuinely unresolved investigation also matters.

The court route should be selected through the applicable procedural framework. Do not assume that any private adjuster’s report is the court-commissioned preliminary appraisal identified in Article 1427(3). The adviser should distinguish the engineering work from the judicial appointment and preserve the relevant order and expert result.

Default and interest under Article 1427(4)–(5)

Article 1427(4) says that once the insurer’s debt becomes due, it falls into default without the need for a formal warning. Article 1427(5) invalidates contractual provisions intended to release the insurer from its obligation to pay default interest. This is a statutory rule distinct from the calculation of the initial loss and from an agreement about repairing the property.

The exact interest calculation is not established simply by reciting Article 1427. The correct start date, applicable interest regime, currency and any special insurance or commercial provisions must be assessed. State the legal basis of the rate in a written claim rather than insert an unsupported percentage into an invoice or demand.

A policyholder may still send a written demand to document the payment account, amount and legal position, even when default does not require notice under Article 1427(4). This is evidentiary practice, not an assertion that statutory default begins only when the demand arrives. Keep the date of maturity and the date of the later letter separately.

Law No. 7589 Article 10 changed the statutory-interest formula from 31 July 2026. Under Law No. 3095 Article 1, where the amount is not contractually fixed, the annual rate is eighty percent of the Central Bank rediscount rate on the preceding 31 December. If the 30 June rediscount rate differs by at least five percentage points, eighty percent of that rate applies for the second half of the year. Article 2 separately addresses default interest and the potentially higher commercial advance rate. For foreign-currency debt, Article 4/A instead refers, absent a higher agreed contractual or default rate, to the highest rate paid by state banks on one-year deposits in that currency. Keep the maturity date, currency and periods separate; do not apply one current percentage retrospectively to the entire claim.

Partial payments and termination belong under Article 1428

Article 1428(1) provides that, in insurance other than liability insurance, partial indemnity payments during the insurance term reduce the insurance sum unless otherwise agreed. Article 1428(2) allows termination of the contract in cases of partial loss, but the insurer may exercise its termination right only after making the partial indemnity payment. These issues differ from the Article 1427(3) advance-payment requirement.

If a claimant has received several sums, classify each transfer: an advance under Article 1427(3), a partial compensation payment under Article 1428, a refund of premium or a separate reimbursement of expenditure. The bank entry alone may not establish its intended legal classification. Read the accompanying payment notice and agreement.

Where the insurer asserts that its payment permanently reduced future coverage, examine the nature of the payment and any contrary policy agreement. Do not assume that every payment during an investigation necessarily has the same consequences for the remaining insurance sum or future contractual term.

Reasonable assessment costs and emergency spending are separate

Article 1426 requires the insurer to pay reasonable expenses incurred for determining the risk or amount of the insurer’s obligation, including reasonable unsuccessful investigative work. Article 1448 concerns reasonable costs of preventing or reducing the loss and protecting rights of recourse against third persons. These provisions should be distinguished from the payment maturity under Article 1427.

An expert’s bill may establish the cost of measuring the loss, while an invoice for emergency temporary covering may concern prevention of further damage. Neither is automatically the same as the main insured indemnity. For a clear demand, prepare a schedule separating each legal category and record any payment already made.

The insurer should receive the expert engagement, deliverable and invoice, along with explanation of why the task was reasonable. A claimed delay in payment should not be obscured by bundling undisputed loss compensation with contested service invoices. Our separate Article 1426 expense guide explains the assessment-expense framework.

Managing a delayed Turkish insurance claim from abroad

Foreign property owners and overseas companies should organise a single date-stamped document folder with the policy, claim notice, site photographs, insurer instructions, expert reports, invoices, evidence of payment, and later objections. If documents are uploaded to an insurer portal, save the upload receipt and identify the version of every attachment. A verbal status message that the file is ‘almost finished’ is not a reliable date for Article 1427.

Check authority to act for the policyholder. A local property manager can provide access and photographs, but may not have authority to compromise a disputed insurance claim. A lawyer’s power of attorney should be assessed for the intended legal acts and forum. The applicable language and evidence requirements should be examined before court or arbitration submissions.

For a cross-border insurance dispute, jurisdiction can depend on Law No. 5718 Article 46 as well as special rules. Our insurance jurisdiction guide concerns that issue. Neither the insurer’s Turkish address nor the claimant’s residence abroad, by itself, decides all forum questions.

A precise written claim and the Insurance Arbitration Commission

A formal written demand should state the event date, Article 1446 notice date, date and method of document submission, chronology of insurer investigation, payment due-date analysis, any Article 1427(3) advance sought and the unpaid amount. Attach a table of exhibits and separate any disagreement about loss value from disagreement about the statutory maturity date.

Before filing with the Insurance Arbitration Commission, confirm the initial written insurer application and applicable eligibility requirements. The Commission’s official guidance gives the general response period and the distinct procedure for compulsory motor liability insurance. The claimant should follow the actual rule for the policy involved and the available forum rather than import a deadline from an unrelated insurance category.

Where a claim must go before a court, the petition should identify the insurer, contractual obligations, maturity date, principal sum, legal basis of interest and supporting proof. The claim should not rely solely on a statement that forty-five days passed. Where an advance is requested, its separate conditions and amount under Article 1427(3) should be pleaded accurately.

The Commission’s current guidance distinguishes fifteen business days generally from fifteen days for traffic insurance when the insurer has not provided a written reply; a final unsatisfactory reply is a separate application basis. These are eligibility rules, not Article 1427 maturity periods. Check membership, compulsory-insurance exceptions and whether the dispute has already gone to a court, HMK arbitration or a consumer arbitration committee. The Commission currently directs foreign nationals applying personally to physical submission because online filing uses e-Devlet authentication. A representative’s mandate must expressly authorise alternative dispute resolution or application to the Commission under HMK 74. Verify the current filing requirements when preparing an application.

Article 1420 generally sets two years from maturity for insurance-contract claims and, for indemnity or insured-benefit claims, an outer six years from occurrence of the insured event, reserving Article 1482 and other statutory rules. Negotiation alone must not be assumed to protect limitation. Identify the particular claim and any legally effective interruption or suspension.

Final audit before demanding an insurance advance or default interest

Verify whether coverage exists and which insurance type and contractual terms apply. Establish the event and Article 1446 notice, information under Article 1447, insurer investigation and the precise period under Article 1427(2). Explain any insurer-attributable or non-attributable delay from the records. The statutory outer period, shorter personal-insurance period and earlier completion of investigation must not be conflated.

If three months passed with research unfinished, calculate the Article 1427(3) advance from the promptly established loss or benefit, not from a guess or the policy ceiling. Identify whether parties agreed or a preliminary appraisal is required. Record all sums that must be credited on final settlement.

Lastly, check Article 1427(4)–(5) on default and interest, Article 1428 on partial payments, Article 1426 on determination expenses and Article 1448 on protective expenditure. A complete file states the relief requested under each provision and provides a reliable chronology; it does not promise a guaranteed payout based on a single calendar date.

Frequently asked questions

Does an insurer always owe payment exactly 45 days after a loss?

No. Article 1427(2) has a maturity framework, a 45-day outer period after notice and an exception for delay not attributable to the insurer.

What is the special period for insurance of persons?

Article 1427(2) provides fifteen days for insurance of persons, subject to its conditions.

Which notification date matters?

The notification of the insured event under Article 1446, supported by evidence of the actual communication.

Can a document request delay an insurer indefinitely?

A document request is not an automatic, indefinite extension. The necessity of the information and whether delay is attributable to the insurer must be assessed.

What is the three-month insurance advance?

Under Article 1427(3), unfinished investigations three months after the risk notice trigger the statutory advance process based on a promptly assessed loss or benefit.

How much is the required advance?

At least half of the promptly determined damage or insured benefit, not automatically half of the maximum policy sum.

Who determines the preliminary amount?

The parties may agree; otherwise the statute provides for preliminary expert appraisal commissioned by the court.

Is the advance additional to final indemnity?

No. It is paid on account and deducted from the eventual insurance indemnity or benefit.

Does default require another formal warning?

Article 1427(4) states that the insurer enters default automatically when the debt becomes due.

Can the policy exclude default interest entirely?

Article 1427(5) invalidates contract terms intending to release the insurer from default-interest liability.

Does Article 1428 treat every payment as identical?

No. Article 1428 separately addresses partial indemnity and its effect on the insured sum and termination.

Can a claimant abroad prepare the case without travelling to Türkiye?

The file can be organised remotely with proper authority, policy records, notice dates and expert evidence; procedural requirements still apply.

Official sources and related English guides

Additional verified sources: Law No. 7589, Articles 10 and 26; Law No. 3095, Articles 1, 2 and 4/A; Insurance Arbitration Commission application rules; Foreign applicants and representative authority. Checked 7 November 2026.

Legislation: Law No. 6102; procedure: Insurance Arbitration Commission. Read more: Insurance assessment expenses, Underinsured property, Insurance information duties, International insurance jurisdiction.