Bloomberg News

Turkey Tightens Mandatory Quake-Insurance Rules, Hurriyet Says

May 14, 2012

Turkey is tightening rules for mandatory earthquake insurance, making the government decree a law and limiting services to homeowners without protection, Hurriyet reported.

Beginning in August, it won’t be possible to sign up for electricity, gas or water services without a disaster-insurance policy, said Selamet Yazici, president of the Turkish Catastrophe Insurance Pool, according to the Istanbul-based newspaper. The measure should help increase policy holders to 10 million from 3.8 million within five years, Yazici said.

Turkey will bar people without the insurance from getting mortgages and rebuilding aid from the state if their homes are damaged in an earthquake, Yazici said, Hurriyet reported. The law, adopted 12 years after the government mandated the disaster insurance with a decree following a 1999 earthquake that killed tens of thousands of people, will also expand the TCIP’s areas of responsibility to include other natural disasters, Yazici said.

To contact the reporter on this story: Emre Peker in Ankara at epeker2@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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