TESK Supports Price Ceiling Application

Stating they would support price ceiling application in mandatory traffic insurance, TESK Chairman criticized 5% increase of the primes to start in 2018

The Confederation of Turkish Tradesmen and Craftsmen (TESK) supports the price ceiling application in mandatory traffic insurance, according to the statement of Bendevi Palandoken, the head of TSEK, he also criticized 5% increase of the primes to start in 2018. Palandoken said continuity of implementing price ceiling in mandatory traffic insurance in 2018 would relieve the tradesmen. In his statement, referring to the announcement of Mehmet Simsek, Deputy Prime Minister, about the price ceiling application in the mandatory traffic insurance would be carried out in the new year as well, Palandoken said the statement let the tradesmen and craftsmen sigh of relief, as for the price increases make them unhappy.

Indicating the price ceiling application would be continuing in 2018 to let the tradesmen relieve, Palandoken continued; “Instead of increase in insurance primes in the rate of 5 percent so as to compensate the losses of the insurance companies worth TL240 million, carrying out insurance transaction of the uninsured vehicles by being learnt might be more positive way. So, the prime increase would not be necessary.”

Defending loss of insurance prime in automobiles, small trucks and tractors that have no insurance certification had reached nearly TL4 billion, Palandoken concluded; “The number of vehicles without insurance certificate reached 7,9 million. According to our calculations, if only 10 percent of uninsured automobiles to get insurance certification, the prime – which to be obtained from this way – will meet losses of the insurance companies. The loss of prime in these three categories approaches by TL3 billion 772 million. Determining these vehicles is important as much as continuity of ceiling price implementation.”

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