If the insurance company refuses your damage or compensation claim, or offers an inadequate amount, a swift and relatively economical route available before bringing court proceedings is the Sigorta Tahkim Komisyonu (the Insurance Arbitration Commission). Which route is preferable depends on the amount in dispute, its urgency and whether the insurance company is a member of the Commission. In practice many policyholders think of going straight to court after receiving the refusal letter, without being aware that the faster and lower-cost arbitration option exists.
Key Takeaways
- Before applying to the Insurance Arbitration Commission, a written application must be made to the insurance company and 15 days must be allowed to pass.
- Application fees for 2026 start at 600 TL and rise with the amount in dispute; for claims above 85.000 TL the fee is 1,8% of the amount (sigortatahkim.org.tr).
- An arbitrator’s decision may be taken to the İtiraz Hakem Heyeti (the Appeal Arbitration Board) in disputes above a certain monetary threshold.
- If the insurance company is not a member of the Commission, or the dispute falls outside the Commission’s remit, court proceedings must be brought directly.
- Arbitration proceedings are generally concluded in a shorter time than court proceedings and at a lower cost.
What Is the Insurance Arbitration Commission and Who Applies to It?
The Insurance Arbitration Commission is an independent dispute resolution body established by Insurance Law no. 5684 (Sigortacılık Kanunu) in order to resolve disputes between the policyholder and the insurance company without going to court. An application to the Commission may be made through sigortatahkim.org.tr or via e-Devlet.
Which Insurance Companies Are Members of the Commission?
Arbitration cannot be pursued against an insurance company that is not a member of the Commission; the membership list can be checked at sigortatahkim.org.tr. Most insurance companies operating in Turkey are members of the Commission. Confirming the company’s current membership status before applying removes the risk of a later dismissal on procedural grounds (usulden ret).
The Precondition Before Applying
In order to apply for arbitration, a written application must first have been made to the insurance company and either no favourable response received within 15 days or the claim refused. Applications made without this precondition being satisfied may be dismissed on procedural grounds.
| Amount in Dispute | 2026 Application Fee |
|---|---|
| 0 – 8.500 TL | 600 TL |
| 8.501 – 17.000 TL | 1.200 TL |
| 17.001 – 85.000 TL | 1.750 TL |
| 85.001 TL and above | 1,8% of the amount (minimum 1.750 TL) |
Source: sigortatahkim.org.tr, the fee schedule in force as of 01.01.2026. A service expense (tebligat gideri) of 75 TL applies separately to those who notify a KEP (registered electronic mail) address and 325 TL to those who do not.
The Process Through a Worked Example: Step by Step Arbitration Application (Illustrative)
The example below is entirely fictitious, is illustrative in nature and does not reflect any actual file; it has been prepared solely in order to give concrete form to the way the process works. Suppose that the vehicle of a driver holding a kasko policy (comprehensive motor insurance) has been damaged as a result of theft and that the insurance company has assessed the loss as falling outside the scope of the policy and refused payment.
Step 1: Written Application to the Insurance Company
After receiving the refusal letter, the policyholder applies to the company again with a letter of objection questioning the grounds of the decision and referring to the terms of the policy. If the company does not respond within 15 days or maintains its refusal, the next step is taken.
Step 2: Application to the Insurance Arbitration Commission
The policyholder makes an electronic application through sigortatahkim.org.tr, uploading the policy number, the refusal letter and the documents evidencing the loss to the system, and pays the application fee determined according to the amount in dispute.
Step 3: Examination by the Rapporteur and Appointment of the Arbitrator
The rapporteur (raportör) carries out a preliminary examination of the application within 15 days and, if any document is missing, requests that it be completed. The file is then assigned to an independent arbitrator, who assesses it after also taking the insurance company’s defence.
Step 4: The Arbitrator’s Decision and the Outcome
If the arbitrator, having examined the terms of the policy and the evidence submitted, decides in the event in our example that the loss falls within the scope of cover, the arbitrator rules that the insurance company must make payment within a certain period. If the decision is not accepted, an application may be made to the Appeal Arbitration Board in disputes exceeding the monetary threshold.
| Criterion | Insurance Arbitration Commission | Court (Litigation) |
|---|---|---|
| Duration | Generally concluded within a few months | May take more than a year depending on the complexity of the file |
| Cost | A low application fee starting from 600 TL | Proportional court fee and advance on costs, which may be high depending on the value of the claim |
| Hearing | As a rule decided on the papers, without a hearing | Proceedings with hearings and the possibility of examining witnesses |
| Avenues of appeal | Limited; the Appeal Arbitration Board and cassation appeal above a certain amount | Broader access to the istinaf (appeal) and temyiz (cassation appeal) routes |
How Do Insurance Arbitration Proceedings Work?
After the application, the rapporteur carries out a preliminary examination of the file within 15 days; an independent arbitrator then examines the file and gives a decision. Under the legislation, the arbitrator’s time for giving a decision may be extended to a maximum of 4 months from the date of appointment.
Examination by the Rapporteur
The rapporteur assesses whether the application satisfies the formal requirements, whether any document is missing and whether the matter falls within the Commission’s remit. If anything is missing, the applicant is given time to complete it.
The Arbitrator’s Decision and Its Binding Force
In disputes below a certain monetary threshold the arbitrator’s decision is final and binding on the parties. Decisions above that threshold may be taken to the Appeal Arbitration Board, and above a further specified amount a cassation appeal may be made to the Yargıtay (the Court of Cassation).
How Is an Objection Made to an Arbitration Decision?
If one of the parties does not accept the arbitrator’s decision, it may apply to the Appeal Arbitration Board within a certain period from service of the decision. In order for the right of objection to be exercised, the amount in dispute must exceed the monetary threshold set by the Commission; it is advisable to verify the current threshold at sigortatahkim.org.tr.
What Happens If the Time Limit for Objection Is Missed?
Where the time limit for objection is missed, the arbitrator’s decision becomes final and the parties become bound by it. A decision that has become final may form the subject of enforcement proceedings based on a judgment (ilamlı icra takibi).
When Is Bringing Court Proceedings Directly More Appropriate?
If the amount in dispute is very high, if the insurance company is not a member of the Commission, or if the dispute by its nature requires a complex examination by a court-appointed expert (bilirkişi), it may be more appropriate to bring proceedings directly before the Asliye Ticaret Mahkemesi (the Commercial Court of First Instance) or the Tüketici Mahkemesi (the Consumer Court).
The Process of Bringing Proceedings and Court Fees
When proceedings are brought, for 2026 a fixed application fee of 335,20 TL is charged in the Sulh Hukuk Mahkemesi (the Civil Court of Peace) and 732 TL in the Asliye Hukuk Mahkemesi (the Civil Court of First Instance) and the Aile Mahkemesi (the Family Court); in actions for debt and compensation a proportional fee of 68,31 per thousand of the value of the claim is also applied. For current amounts you may use our court fee and cost calculation tool.
What Are the Main Differences Between Arbitration and Litigation?
Arbitration proceedings are generally concluded more quickly than court proceedings, a comparatively low application fee is charged instead of a court fee, and a decision may be given on the papers without a hearing. Court proceedings, by contrast, offer the possibility of a more comprehensive examination of the evidence and provide broader access to the appeal and cassation appeal routes.
In Which Disputes Should Arbitration Be Preferred?
In relatively technical disputes of limited scope, such as diminished value (değer kaybı) or a dispute over the amount of loss, arbitration proceedings offer an advantage in speed; in files where liability is entirely contested, or in high-value and complex files, the litigation route may allow a more comprehensive examination.
How Is the Application Petition Prepared?
An arbitration application must state the policy number, the claim file number, the date of the first application made to the insurance company and the company’s refusal or inadequate offer in response. Attaching in full the invoices, reports and correspondence on which the claim is based enables the application to be processed quickly at the rapporteur stage.
The Advantages of an Electronic Application
In electronic applications made through sigortatahkim.org.tr or via e-Devlet, uploading documents and following the process proceed more quickly; the status of the application can be monitored in real time through the system. A physical application is also possible, but in practice electronic applications are preferred more often because they reduce the risk of documents being lost.
How Does the Insurance Company’s Defence Enter the Process?
Once the application reaches the Commission, notice is given to the insurance company and the company is required to submit its written defence within a certain period. The arbitrator forms a decision by assessing together the documents and grounds submitted by both parties.
Can a Further Expert Examination Be Requested?
Where the file is of a technical nature, the arbitrator may also order an examination by a court-appointed expert; the cost of that examination is generally not included in the application fee and may have to be paid separately. Who is to bear the expert’s fee is also stated in the arbitrator’s decision.
What Will the Other Side Do?
In arbitration or court proceedings the insurance company on the other side also has its own defence strategy; being prepared for those defences determines which evidence the application file needs to be strengthened with.
- “The loss is not within the cover of the policy.” This assertion is met by examining the general and special terms of the policy and by producing the clauses and documents showing that the loss falls within the scope of cover.
- “The amount claimed is excessive, the loss is not that great.” This defence is met with concrete documents establishing the loss, such as an independent loss adjuster’s report (eksper raporu) and repair invoices.
- “The application is procedurally defective or was made late.” This objection is met with correspondence records showing the date of application and with proof of service documents.
- “The policyholder aggravated the risk; it falls within the deductible.” This assertion is met with the accident report and records showing the moment of the incident.
Which defence will come to the fore varies according to the terms of the policy and the nature of the loss; for that reason it is important that the application file be prepared with complete documentation. To assess in advance which defence your file will meet, you may get in touch.
Frequently Asked Questions
Who can apply to the Insurance Arbitration Commission?
Policyholders who have a contractual relationship with an insurance company that is a member of the Commission, or who have suffered loss, as well as third parties, may apply.
Is an arbitration application free of charge?
No; an application fee varying according to the amount in dispute and a service expense are charged; the current schedule can be viewed at sigortatahkim.org.tr.
How long does it take for an arbitrator’s decision to be given?
Under the legislation, the arbitrator’s time for giving a decision may be extended to a maximum of 4 months from the date of appointment.
Can an objection be made to an arbitration decision?
Yes; in disputes above a certain monetary threshold an application may be made to the Appeal Arbitration Board.
What is to be done if the insurance company is not a member of the Commission?
In that case arbitration cannot be pursued; the dispute is resolved by court proceedings directly before the competent court.
How is an arbitrator’s decision that has become final enforced?
An arbitrator’s decision that has become final has the character of a judgment and may form the subject of enforcement proceedings.
Is it compulsory to instruct a lawyer for an arbitration application?
No; however, where a technical interpretation of the terms of the policy is required, having the file prepared by a lawyer may increase the persuasiveness of the application.
How do arbitration proceedings work in a kasko claim?
The same arbitration process is followed in kasko disputes; however, special terms of the policy such as the deductible (muafiyet) and the wear-and-tear deduction (aşınma payı) must be separately addressed in the application petition.
Can an arbitration application be withdrawn?
Yes; the application may be withdrawn before the arbitrator’s decision is given, and the dispute may be taken to court directly by way of proceedings.
Do Arbitration Proceedings Work Differently in Kasko and Traffic Insurance Disputes?
The same arbitration route may also be followed in disputes arising from kasko insurance; however, because kasko contracts contain special terms such as the deductible and the wear-and-tear deduction, it is advisable that the application petition also refer to the general and special terms of the policy. In disputes concerning compulsory traffic insurance (trafik sigortası), the degree of fault and the amount of loss are generally the matters in contention; for how the process of objecting to the degree of fault works, you may look at our article on objecting to the determination of fault in a traffic accident.
Examining the Terms of the Policy
Careful examination of the general and special terms of the policy before an arbitration application is important in order to establish clearly which losses fall within the scope of cover and what the deductible amounts are. The exclusion clauses in the terms of the policy may directly affect whether the application will be accepted.
Is It Necessary to Work With a Lawyer During an Arbitration Application?
Representation by a lawyer is not compulsory in an arbitration application; the policyholder may make the application personally. However, where a technical interpretation of the terms of the policy and legal reasoning to be presented before the arbitrator are involved, having the file prepared by a lawyer may increase the persuasiveness of the application.
Can an Attorney’s Fee Be Claimed in the Arbitration Decision?
If the arbitrator decides in favour of the applicant, the arbitrator may also rule that part of the attorney’s fee be collected from the other side; for current amounts on this point you may look at our attorney’s fee calculation tool and assess the possible costs in advance.
What Should Be Done in Conclusion?
Where the insurance company refuses payment or makes an inadequate offer, applying to the Insurance Arbitration Commission after a written application and the 15-day waiting period offers, in most files, a faster and lower-cost solution than bringing court proceedings. Preparing the application file with complete documentation prevents time being lost at the rapporteur stage and enables the process to move forward more quickly. Your particular situation needs to be assessed on the facts of your own file.
On the scope of insurance disputes you may look at our insurance law page, for diminished value claims arising from damage to a vehicle our article on diminished value compensation, and, where death results from an accident, the subject of compensation for loss of financial support that may be claimed from the insurer.
Can an Arbitration Application Be Withdrawn?
The applicant may withdraw the application before the arbitrator’s decision is given; in that case the dispute may be taken to court directly by way of proceedings. The request for withdrawal is notified in writing to the application file on sigortatahkim.org.tr.
Is the Fee Refunded If the Application Is Withdrawn?
Refund of the application fee paid may vary depending on the stage at which the withdrawal is made; it is advisable to check at which stage of the process matters stand through sigortatahkim.org.tr.
What Happens If the Insurance Company Does Not Comply With the Arbitrator’s Decision?
If the insurance company does not make payment despite the arbitrator’s decision having become final, then, since the decision has the character of a judgment, enforcement proceedings based on a judgment may be commenced by applying directly to the enforcement office. In that case there is no need to bring separate court proceedings. For the statutory interest rates that will run on the delayed payment, you may look at the difference between statutory interest, default interest and advance interest.
The Advantage of Enforcement Proceedings Based on a Judgment
In enforcement proceedings based on a judgment, the debtor is allowed only a limited period in which to object and, as a rule, an objection does not stay the proceedings; this enables the creditor to obtain what is owed more quickly. Whereas in enforcement proceedings without a judgment (ilamsız icra takibi) the debtor’s objection stays the proceedings automatically, in proceedings based on a judgment that risk is largely removed.
Table of Time Limits
| Period | How long | Starting point |
|---|---|---|
| Waiting period following the written application to the insurance company | 15 days | From the written application to the insurance company |
| Time for the arbitrator’s decision (maximum) | 4 months | From the appointment of the arbitrator |
Sources
- Sigorta Tahkim Komisyonu – Application Fees (2026)
- 5684 sayılı Sigortacılık Kanunu m. 30 (the Insurance Law) – mevzuat.gov.tr
- Code of Civil Procedure no. 6100 (HMK) – mevzuat.gov.tr
Related Articles
- Diminished Value Compensation 2026: Application, Insurance Arbitration and the Litigation Route
- Objecting to the Determination of Fault in a Traffic Accident: Report, Expert, Litigation
- Proceedings Against Tax and Administrative Fines: Time Limits and Stay of Execution
- Hidden Defects and Odometer Tampering in Second-Hand Vehicles
This article is for general information purposes and does not take the place of legal advice. Your particular situation requires a separate assessment of your file. This article has been prepared on the basis of the legislation in force as at 17.09.2026.
Av. Mehmet İlker Dinç
Insurance Law, Compensation Law, Employment Law, Company Law, Corporate Advisory
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