Insurance Company Not Paying a Claim? How Does the Comprehensive Insurance Arbitration Process Work?

When your insurance company fails to pay a claim arising from your comprehensive or traffic insurance, or unfairly rejects your claim, the primary place you can apply before going to court is the Insurance Arbitration Commission. The Commission resolves disputes between the insurer and the policyholder based on the file, without a hearing, in a short time and at a much lower cost than going to court. Below you will find this process step by step, from the written application to the company through the enforcement of the decision.

What Is the Insurance Arbitration Commission and What Gap Does It Fill?

The Insurance Arbitration Commission is a dispute resolution body established under Article 30 of the Insurance Law No. 5684, operating under the Türkiye Insurance and Reinsurance Companies Association. It has a structure that includes a representative of the Undersecretariat, two representatives of the Association, a representative of a consumer association, and an academic legal scholar; its details are regulated by the Regulation on Arbitration in Insurance.

In the past, the only path before a policyholder facing a claim denial was to file a lawsuit that could take years. The arbitration system changed this picture: the file is reviewed on paper, arbitrators are selected from among experts in insurance law, and the outcome is final below certain amounts. Let us also note from the start: The Commission has no authority to punish insurance companies; regulation and supervision are the responsibility of institutions such as SEDDK. In addition, the Commission does not provide legal opinions or advice; it is not a party and issues impartial decisions.

Before Applying for Arbitration: A Written Application to the Insurance Company Is Required

The first step of the arbitration process is not the Commission, but the insurance company itself. The law makes a written application to the company mandatory first. This application can be made by e-mail, registered electronic mail (KEP), the company's claim notification system, or a physical petition. The most critical point here is to make your application in a documentable manner; phone conversations create proof problems later on.

The company's response period is 15 business days. If no response arrives within this period, or if the claim is rejected entirely or partially, the path to arbitration opens. If the rejection letter has reached your hands, you do not need to wait out the 15 days; you can apply immediately. In case of no response, you go to the Commission's door with a document showing that the 15-day period has elapsed, that is, a record proving the date of your application.

Which Claims Are Not Covered by Arbitration?

Not every dispute fits within the arbitration route; knowing this limit before preparing your file prevents wasted time. The Commission does not accept files for review in the following cases:

• If the matter has been referred to court, the consumer arbitration committee, or arbitration under the Code of Civil Procedure.
• If the insurance institution that is the subject of the dispute is not a member of the arbitration system, or if the claim has no connection with the insurance policy.
• If the risk occurred before the date the company became a member of the arbitration system (for compulsory insurance policies, the membership requirement does not apply to disputes after 18.04.2013).
• If the claim is directed solely at the driver or the operator; material damage claims related to vehicle damage are directed directly at the at-fault driver or the vehicle owner. The exception is the bankruptcy of the insurance company.

How to Apply: Method, Documents and Fees

The application can be made in three ways: Through the Committee's online application menu (your file is tracked with an application number), in person, or by post. According to the regulation, the application form must be filled out and document submission by e-mail is not accepted; missing this detail delays the processing of your file. There is also a procedurally reassuring development: With the 2026 application circular, an application can be made even if the expert report has not yet been completed, and these circulars do not eliminate the right to file a lawsuit.

Required Documents

• Application form with wet signature
• Copy of ID
• A petition describing the incident and the claims
• Copy of the policy (if you have it)
• Supporting documents
• Document showing that the company was contacted, and its refusal or lack of response
• Receipt of the application fee
• Power of attorney with special authority if applying through a representative

2026 Application Fees

Arbitration is not "completely free"; there is an application fee depending on the claim amount, well below court costs. Since the fees are updated periodically, it is worth checking the Committee's current fee schedule before opening a file. For claims in foreign currency, the fee is calculated based on the equivalent in the CBRT foreign exchange selling rate.

A refund mechanism is also in place on the fee side: If the application conditions were not met, or if you withdraw before the review begins, 90% of the fee is refunded; if the file is closed due to missing documents, 50% is refunded.

How Long Does the Process Take: From Preliminary Review to Decision

The process goes through two main stages. First, the rapporteurs conduct a preliminary review of your application within at most 15 days and decide whether the file will be referred to an arbitrator. Then the arbitrator's review begins; the arbitrators must complete the review within at most 4 months. If the dispute value is 15,000 TL or more, a panel of at least three members is formed. If no decision is reached within 4 months, the dispute is moved to the competent and authorized court; this is a limitation inherent to the system itself.

A calendar also applies to the notification of the decision: the decision is notified within three business days of being given to the director. If all of this is combined with the objection stage, roughly two more months can be added to the front of your file. In other words, the expected time in a file proceeding without problems is still short compared to court proceedings; but you should not enter the process expecting it to be "resolved this week" either. This is not a courier transaction, it is a legal review.

Objection to the Decision and Collection of Compensation

There is a one-time objection route available against the arbitrator's decision: Decisions of 35,000 TL and above can be objected to within 10 days of notification, and the objection review is concluded within two months. An additional objection fee equal to the application fee is paid for the objection. In disputes exceeding 383,000 TL, decisions issued upon objection can be appealed; decisions below this threshold are final. Since these threshold figures are subject to periodic updates, I recommend confirming the current limits when looking at your file's amount.

When the decision becomes final in your favor, the work is not over, but it becomes easier: the final arbitration decision has the force of a court judgment and is collected through enforcement with a judgment; a lien can be placed on the company's assets. Two points here need to be well understood. First, the objection suspends the execution of the decision; obtaining the ruling is fast, but one final step may be needed for collection. Second, the Commission cannot enforce its decision itself; if the company does not make a voluntary payment, enforcement proceedings remain at your initiative. This is the most frequently criticized aspect of the system: receiving the ruling is fast, but one final step may be required to collect the payment.

Complaint Channels Outside Arbitration: The Ministry, SEDDK, and the Insurance Association

Arbitration is not the only route; depending on the nature of the dispute, or in parallel, there are other channels that can be used. The Ministry of Treasury and Finance enables both filing and tracking of complaints through the Insurance and Private Pension Complaint Application and Tracking service offered via e-Devlet. SEDDK, which is responsible for regulation and supervision, operates the ALO 193 line, available 24/7, for reporting and complaints about unauthorized damage agents.

The Türkiye Insurance Association also accepts applications through its form portal with the Complaint Form, Casco Information Form, and Contact Form. Here is a small but functional detail: in the complaint you submit to the Association, you are asked whether a judicial process has started; because an administrative complaint route cannot resolve a matter that has gone to court. When deciding which channel to choose, it is enough to clarify the following: if you want your compensation claim to be decided, arbitration; if you want to report the company's violation regarding its practice to supervision, the Ministry or SEDDK.

What You Need to Know in Practice: Fee, Timeline, and the Lawyer Question

As someone who has followed files in this field for many years, I find it useful to gather the answers to the most frequently asked questions under a heading:

• Within how much time must the damage payment be made? In casco, payment is made within 10 business days after the documents are completed and the damage is assessed, and in any case no later than 45 days from notification. In traffic insurance, the legal period after the documents are completed is generally 8 business days. In case of incomplete payment, the arbitration route is also available.
• Is a lawyer required? No; the system was designed specifically for individual applications. If you wish, you can also proceed through a lawyer with a power of attorney.
• Is the application period limited? There is no separate application period for arbitration; general statute of limitations provisions apply. The most common mistake is applying after the file has already become time-barred.
• What if the company never responds? You can apply directly to arbitration with a document proving that the 15-business-day period has expired.

One warning to the parties as well: arbitrators are not chosen by the parties; they are appointed by the Commission, and the Commission cannot give you legal advice. Arbitration is a shorter and cheaper route compared to a lawsuit, but it is not an automatic guarantee of gain; the policy terms and the strength of evidence in your file are what matter above all. First request the reasoned final response from the company and your claim file, then draw up your roadmap.

Conclusion: Write First, Then Follow Up

A dispute with an insurer is, by its nature, rarely resolved with a single phone call. If it is a well-structured process, it is simple: a documented written application to the company, a 15-business-day wait or rejection, and if necessary an arbitration application followed by a 4-month review tracked with a tracking number. The institutions and authorities that will be involved are at your fingertips; what is decisive is taking every step with documentation.

Sources

• Frequently Asked Questions
• How to Apply
• Application Fees
• Regulation on Arbitration in Insurance
• Insurance Arbitration Commission Application Circular (2026/02)
• Insurance Arbitration Commission Application Before the Expert Report Is Completed
• Insurance and Private Pension Complaint Application and Tracking
• SEDDK Contact
• Türkiye Insurance Association Complaint Form
• Insurance Arbitration Commission Application, Fees and Objection
• Claim Payments and Required Documents
• Traffic Insurance Claim Payment Period
• What Should You Do If the Insurance Company Does Not Pay?
• Comprehensive Insurance Payment Problem: Objection, Arbitration and Lawsuit
• General Information About Insurance Arbitration Law
• Insurance Arbitration Commission Application: Step-by-Step Guide
• Application to the Insurance Arbitration Commission
• Your Rights in a Dispute with the Insurance Company
• How to Apply to the Insurance Arbitration Commission?
• Application to the Insurance Arbitration Commission: Process and Binding Effect