TURKEY: Mehmet Simsek: 'We are working towards a new model for traffic insurance'

Vice President, Mehmet Simsek, was on the live broadcast of NTV. "Traffic insurance is an obligatory insurance type," said Mr. Simsek, having explained that they are working towards a new model for traffic insurance emphasizing the drawbacks of the current system. "The system is designed to compensate the damage one causes to the other. Therefore, the one needs to be insured is rather the driver, not the vehicle. Say, the vehicle is insured but it was trusted to an inexperienced driver. Such factors are leading to increased premium payments. I instructed the Treasury and they are working on it. There is a similar system in effect in the UK where the driver is insured. Such a system considers not only the risks the vehicle is exposed to but also the risks drivers are exposed to. With this system we believe the number of traffic accidents and damages will be reduced, which in return will lower the premiums," he added.

On the performance of Turkish economy in the first 1.5 month of the year, Mr. Simsek noted that the data weighs heavy on the side of growth and the loss in the value of Turkish Lira is now having consequences on the exports and said: "As there is still a slight uncertainty, investments are still not that strong. We anticipate that investments will be stronger by April. When it comes to domestic consumption, the analysis is not that bad. Looking into the tax revenues for January, we can see a moderate growth in domestic demand. The situation is not disastrous as it is felt, however, not strong as we anticipated. It is favorable to see a moderate growth.  The market will be driven even more after the uncertainty of referendum is relieved." Read the full story

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