The scope of the coverage and the subject of the risk in product liability insurance

Mass production and distribution methods, in the present time, cause the introduction of products to the marketplace in an unsafe and ineffective manner, which is not expected from them. In this manufacturing type, which is called "fabrication" in daily language, unsafe products are offered to the marketplace due to defects and insecurities that occur in design, production and informing stages, resulting bodily injuries or tangible damages suffered by third person who use them or who are in the influence area of them. In the world, product liability is considered as a non-negligence and non-contractual type of liability, in order to ensure that such damages and losses are indemnified fairly. Also in Europe, the European Union Council Directive No. 1985/374 was adopted based on this idea. In our country, said Directive was adopted by the "Regulation on Liability for Losses Caused by Defective Products", which was published via the Official Gazette No. 25137 of 13.06.2003 within the framework of establishing alignment with the EU's acquis. In product liability law, the term 'product' means, everything on which domination can be established. The term 'unsafe product' is, a product which fails to provide such just and minimum safety that is expected from it. The subjects of liability are, manufacturers ( final or intermediary manufacturers), manufacturer-like parties (those who introduce themselves as manufacturers), importers and distributors of products. According to the Directive, distributors may be held liable, only when any manufacturer or manufacturer-like party cannot be identified. Everyone who is in influence area of, and suffers damages and losses caused by any unsafe product, shall be entitled to claim such damages and losses from said subjects of liability severally, or directly from insurers as per Article 1478 of the Turkish Commercial Code and as per Article B.5 of the General Conditions of Product Liability Insurance in Turkey. Product liability insurance is intended to indemnify any decreases in assets of insuring parties suffered as a result of damages and losses of third parties caused by products with defects. This thesis, contains an analysis of the scope of product liability insurance in consideration of the General Conditions of Product Liability Insurance in Turkey, that was published on 19.07.2014. Article A.1 of the General Conditions, stipulates that, this insurance covers claims that are attributable to product defects defined in the insurance policy, and reasonable costs and expenses that are associated with such claims. In our country, it is also required to publish general conditions for insurances, product recall expenses, product guarantee and pure economic losses. Damages and losses covered by these insurances, except for pure economic losses, have, as a rule, been excluded from insurance coverage, by means of additions that were made on 14.03.2016 to the General Conditions of Product Liability Insurance and they have been regulated as events that can be included in insurance coverage by means of additional contracts. No such an arrangement has been made for pure economic losses.