Determination of insurance compensation in loss insurance

Insurance losses refer to the type of insurance that covers the damage incurred on the insured interest upon the occurrence of a risk. Insurance losses are regulated in the Second Part of the First Section of the sixth book of the Turkish Commercial Code, Law No. 6102, titled "Insurance Law." Within the framework of the Turkish Commercial Code, insurance losses, encompassing "property insurance" and "liability insurance," are approached from a different perspective that distinguishes between active and passive insurances, deviating from the code's systematic categorization. When a risk materializes, resulting in a loss on the insured interest, it becomes an insurance loss. Determining the loss incurred on the insured interest necessitates expertise involving technical information depending on the form of the risk. Individuals possessing the required expertise to determine insurance losses are referred to as insurance experts. Parties may also resort to a proof agreement or utilize arbitrators-experts to determine the loss, depending on their arrangement. The procedures for the work of insurance experts and arbitrators-experts are governed by specific rules. The determination of the insurance loss is crucial in addressing the question of the extent of the insurer's liability for the incurred loss. The amount for which the insurer is responsible for mitigating in the event of an insurance loss constitutes the insurance compensation. Differences in insurance compensation arise based on whether it falls under active or passive insurances. Additionally, legal and contractual factors impact the amount of compensation. This study aims to elucidate the determination of insurance losses and insurance compensation in light of the principles dominating insurance losses. The first section of the study touches upon the concept of insurance losses and the distinction between this type of insurance and amount insurance. The second section delves into the determination of insurance losses, while the third and final section examines the factors shaping insurance compensation.