Insurance for the account of a third party

Insurance for the account of a third party refers to an insurance contract concluded between the insurer and the policyholder, in which the policyholder insures an insurance interest belonging to another person, that is, the insured, in their own name but for the benefit of that insured. This legal relationship is established between the insurer and the policyholder, while the insured is the party concerned by the contract. This study examines "Insurance for the account of a third party", regulated under Article 1454 of the Turkish Commercial Code, through a comparative approach within the frameworks of the Turkish and German legal systems. In this context, the historical roots of insurance for the account of a third party and the normative regulations on the subject have first been examined in a systematic manner. Subsequently, the theoretical and conceptual foundations of insurance for the account of a third party have been examined, and the structural similarities between agency relationships and contracts for the benefit of a third party have been analyzed comparatively. The provisions of Turkish law concerning insurance for the account of a third party contain certain ambiguities, whereas they are regulated more comprehensively in German law. In particular, the absence of an explicit provision in Turkish law regarding the policyholder's power of disposition, the differences concerning the presumption of insurance for the account of a third party, and the insufficiently clear regulation of the distinctions between representation and presumption are matters that may give rise to uncertainties on the subject. For the reasons explained, this study proposes an amendment to Article 1454 of the Turkish Commercial Code concerning insurance for the account of a third party.