Compensation Law

Compensation law covers the rules on making good the damage suffered as a result of an unlawful act or a breach of obligation. Under Article 49 of the Turkish Code of Obligations (TCO), anyone who causes damage to another through a culpable and unlawful act is obliged to compensate that damage. In contractual relations, if an obligation is not performed at all or not performed properly, the debtor must compensate the creditor's damage unless the debtor proves that no fault can be attributed to them (TCO Art. 112).

Pecuniary damages

• Bodily injury: Medical expenses, loss of earnings, losses arising from reduced or lost capacity to work and losses arising from impairment of economic prospects (TCO Art. 54)
• In case of death: Funeral expenses, medical expenses and loss of working capacity where death did not occur immediately, and the losses of persons deprived of the deceased's support, i.e. loss of support compensation (TCO Art. 53)
• Property damage: Vehicle damage, loss of value, loss of use and other damage to property

Loss of support and bodily injury damages are calculated actuarially in accordance with the principles of liability law. Social security payments that cannot be recovered may not be deducted from the damage (TCO Art. 55). An amendment made by Law No. 7589 in 2026 introduced new rules on the starting date of interest on these awards and on deducting payments made before the taking of evidence begins.

Non-pecuniary damages

Where bodily integrity is harmed, the judge may, taking into account the circumstances, award the injured party an appropriate sum as non-pecuniary damages; in cases of serious bodily harm or death, the relatives of the injured or deceased may also claim non-pecuniary damages (TCO Art. 56). Non-pecuniary damages may also be claimed for attacks on personality rights.

Main areas of work

• Traffic accidents: The keeper of a motor vehicle and the owner of the enterprise to which it belongs are jointly and severally liable for damage arising from its operation (Highway Traffic Law Art. 85). Within the limits of compulsory liability insurance, the injured party must apply to the insurer in writing before filing suit; if the insurer does not respond within fifteen days or the response does not meet the claim, a lawsuit may be filed or an application made to the Insurance Arbitration Commission (Art. 97).
• Occupational accidents and diseases: Claims of employees and their relatives for pecuniary and non-pecuniary damages
• Medical malpractice: Civil liability of physicians and healthcare institutions
• Employer's liability: An employer is liable for damage caused to others by an employee in the course of the work assigned; the employer may avoid liability by proving that due care was exercised (TCO Art. 66).
• Liability of the administration: Full remedy actions before administrative courts for damage arising from faulty operation of public services or administrative actions
• Breach of contract: Damage arising from defective performance, delay and non-performance
• Violations of personality rights: Damage arising from attacks through the press, social media or other means

Limitation periods

A claim for compensation in tort becomes time-barred two years after the injured party learns of the damage and the person liable, and in any event ten years after the act; if the act constitutes an offence for which criminal law provides a longer limitation period, that period applies (TCO Art. 72). Similar periods apply to material damage arising from motor vehicle accidents (Highway Traffic Law Art. 109). For claims arising from breach of contract, a ten-year limitation period applies unless the law provides otherwise (TCO Art. 146).

Preserving evidence

In compensation cases, collecting and preserving evidence immediately after the incident, such as accident reports, criminal investigation files, medical reports and treatment records, income documents and photographs, is decisive for calculating the damage correctly.

Our firm provides services in compensation law, including applications to insurance companies, mediation, applications to the Insurance Arbitration Commission and litigation.

The information on this page is provided for general information purposes only and does not constitute legal advice.