Kasko or Compulsory Traffic Insurance: What Is the Difference?

The Core Difference: Whose Loss Is Paid?

The two policies answer different questions. Compulsory motor third party liability insurance (MTPL) answers "who pays for the harm I cause to someone else", while comprehensive motor insurance — kasko in Turkish usage — answers "who pays for damage to my own vehicle".

Clause A.3 of the MTPL General Conditions limits cover to third-party loss, and clause A.6(ğ) expressly excludes damage to the insured's own vehicle. Clause A.1 of the Land Vehicles Comprehensive Insurance General Conditions does the opposite, insuring direct material damage to the vehicle described in the policy. Neither substitutes for the other.

The legal obligation differs too. Article 91 of Highway Traffic Law no. 2918 makes MTPL compulsory and provides the sanction: vehicles without it at valid limits are taken off the road, while Article 101 requires insurers licensed in the accident branch to write this business. Kasko is voluntary. No statute requires it, though a lender or lessor may impose it by contract, and there is no matching duty on the insurer to accept the risk. We set out the compulsory side in what compulsory traffic insurance covers.

Scope Compared

The table below is drawn from the two sets of General Conditions. "Rider" refers to the perils in clause A.4 of the kasko conditions, covered only if separately agreed (ek sözleşme).

Perils in Kasko That Need a Rider

Clause A.1 lists five core peril groups: collision; sudden external impact, overturning and falling; malicious acts of third parties; fire; and theft or attempted theft of the vehicle or its parts.

A great deal sits outside that core and enters cover only by rider. Clause A.4 lists fifteen such items; these surprise policyholders most often:

• Earthquake, landslide, storm, hail, lightning and volcanic eruption (A.4.4), and flood and inundation (A.4.5). Natural catastrophe cover is not automatic.
• Strike, lock-out, riot and civil commotion (A.4.2), and terrorist acts under Law no. 3713 (A.4.3).
• Loss occurring outside Türkiye (A.4.1); the geographic limit under clause A.2 is Türkiye.
• Loss of use and loss of income while a total or partial loss is settled (A.4.8). Courtesy-car expectations rest on this item.
• Theft achieved by obtaining the vehicle key (A.4.11) and replacement of the lock mechanism after keys are lost (A.4.12).
• Damage caused by rodents and other animals (A.4.13).
• Mechanical, electrical and electronic breakdowns and tyre damage (A.4.15).

Reading the Product Name and the Deductible

Four product names are fixed by regulation. Under clause A.1, Dar Kasko (restricted) covers some of the core peril groups, Kasko all of them, Genişletilmiş Kasko (extended) all of them plus some riders, and Tam Kasko (full) all of them plus every rider. The same clause requires the policy heading to carry the matching name in type of at least 16 point. Reading the heading is the quickest route into the cover.

The second line worth reading is the deductible. Clause A.6 lets the parties agree that loss up to a stated sum, or a stated proportion of the sum insured, will not be indemnified, and requires deductibles to be printed in type of at least 14 point. Compulsory MTPL has none.

How the Claim Runs

Under MTPL the claim is driven by the injured third party. Article 97 of Law no. 2918 requires a written application before proceedings; if there is no written answer within 15 days, or the answer does not meet the claim, the claimant may sue or go to the Insurance Arbitration Commission under Law no. 5684. Article 99 sets payment at eight working days from delivery of the documents.

Under kasko the insured drives the claim and the timetable differs. Clause B.1.1.1 requires notice within five working days of learning of the loss. Under clause B.3.4.1, where documents are complete and a loss adjuster has assessed the loss, the indemnity must be paid within ten working days of the adjuster's report; the obligation falls due 45 days after notification in any event.

The measure of indemnity also differs. Clause B.3.3.1.1 covers the vehicle up to its market value (rayiç değer) at the date of loss. Where repair costs exceed that value and the vehicle is beyond economic repair, it is a total loss, and no indemnity is paid until the scrapping registration document is produced.

What Happens to Each Policy When the Car Is Sold

This is the difference most often missed in practice, and the two texts genuinely diverge.

On the compulsory side, clause C.4 provides that the contract follows the insured. Whenever the insured changes, the contract terminates automatically at that date and premium is refunded pro rata. A sentence that once kept the policy valid for the new operator for fifteen days was repealed by the amendment of 12 June 2026. There is therefore no grace period for the buyer: cover must be arranged on the day of transfer.

In kasko, clause C.5 deals with a change in the insured interest: the contract terminates automatically when the interest changes and unexpired premium is refunded daily. The decisive sentence follows: the policy may provide that it continues with the new owner. Transfer is possible, but only where the wording says so.

Which One Is Enough? An Agency View

Because MTPL is compulsory it is not really a decision; the question is how the second layer is built. Where third-party loss exceeds the compulsory limits the excess falls on the operator, and that gap is closed by excess third party liability (İMM) cover. Damage to your own vehicle points to kasko, and natural catastrophe or terrorism to the A.4 riders.

As an insurance agency, RYL Sigorta Aracılık Hizmetleri prepares quotations from the insurers we are appointed by and sets cover and deductible lines side by side before anything is signed. The policy is issued on behalf of the insurance company and any indemnity is paid by that company. For fleets we continue the comparison in fleet comprehensive motor insurance, and the full range sits on the motor insurance page.

Frequently Asked Questions

Sources

• Land Vehicles Comprehensive (Kasko) Insurance General Conditions — SEDDK
• Compulsory Motor Third Party Liability Insurance General Conditions — Turkish Legislation Information System
• Highway Traffic Law no. 2918 — Turkish Legislation Information System
• Insurance Law no. 5684 — Turkish Legislation Information System
• Insurance General Conditions — SEDDK

This article is for information only; the scope of cover is set by the policy’s specific and general terms.