The Insured Has a New Favorite Product: Voluntary Pecuniary Liability (IMM) Insurance!

PRODUCT DEVELOPMENT 11.02.2022, 10:42
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The Insured Has a New Favorite Product: Voluntary Pecuniary Liability (IMM) Insurance!

In our daily life, we use our private vehicles to reach many places. Avenues and streets are full of vehicles almost wherever you look. In places where so many vehicles are moving, naturally, the risk of an accident is very high. Such that, according to the data of the Traffic Division of the Directorate General of Security, 2,422 people lost their lives and 276,935 people in 430,204 traffic accidents in our country in 2021. We ourselves will be liable for covering the pecuniary, non-pecuniary, and physical damages arising from the traffic accidents we have caused. 

We need the Compulsory Traffic Insurance to cover these damages, yet the limits of this policy are insufficient considering the current vehicle prices and the bodily injuries that we may cause. Well, how can we cover the damages above these limits then?

Voluntary Pecuniary Liability Insurance

Able to be taken out as an additional coverage under the motor insurance policy, this product also covers the damages above the limits of the traffic insurance on our behalf.

Especially the accidents with major damage cause people responsible for the accident to brood about and leave them with severe financial burdens as a result. Taken out under very affordable premiums, this coverage will minimize or completely eliminate the financial burden of the accident. 

The damages should not be considered only in terms of their pecuniary and physical aspects. 

Non-pecuniary Indemnity Claims

Persons who are victims of traffic accidents can also claim non-pecuniary damages from the person responsible for the accident. Non-pecuniary damages are not included in the Traffic Insurance. Voluntary Pecuniary Liability Insurance comes to our rescue here as well, covering also non-pecuniary claims within the limits specified in the policy. 
Since non-pecuniary indemnity claims are difficult to measure and the damage compensations will be made over IMM coverage, and these claims will be evaluated by experts, we are protected from unfair and excessive claims. The subject we handled herein so far can be concretized with an example.

Model Incident

First, we will assume that for our vehicle, we have traffic motor insurance policies and policies with an IMM coverage of TRY 2 million combined (total amount for pecuniary, non-pecuniary, bodily damages).

Let's say we hit the oncoming vehicle as a result of incorrect overtaking while driving on the highway in our vehicle and in that case, we will be 100% liable for the compensation of the damage. The other vehicle whose current value is TRY 500 thousand becomes totalled. Compulsory traffic insurance pays TRY 50 thousand for this vehicle on our behalf. 

And our motor insurance policy pays the remaining amount of TRY 450 thousand over our IMM coverage.

Again, in this incident, the driver of the other vehicle dies and the compensation amount to be paid is determined as TRY 1 million through calculations based on information such as the person's age, marital status, number of children, and so on. Compulsory traffic insurance covers TRY 500 thousand of this compensation, and the remaining TRY 500 thousand is paid over our IMM coverage, also included in our motor insurance policy.

Conclusion 

Our life is full of risks. One of the most important of these risks is human. We may not be able to cope with the pecuniary and non-pecuniary damages we inflict on third persons on the highways arising from our carelessness, lack of sleep, and failure to comply with the rules, on our own. Able to be purchased by paying very small amounts, this coverage will save us from a great burden. 
The related coverage is given in very high limits and can even be given without limits by most insurance companies. There is no reason for us to be content with traffic insurance and we should definitely have the optional indemnity insurance. We should note that the only thing we cannot buy later is insurance.  


Tarkan Bozkurt – Salih Erbaş
 

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