Loss-of-Support Compensation

Compensation for Lack of Support: Legal Foundations and Calculation Methods

Events that occur at unexpected moments in life can cause irreparable damage to people's lives. Especially in the event of a person's death, his/her legal mechanism aiming to compensate for the economic losses suffered by those deprived of financial support, compensation for loss of support. In this article, what compensation for loss of support is, in what situations it occurs, who may be entitled to this compensation, and most importantly, current approaches and problems encountered in compensation calculations will be examined in detail.

Legal Nature and Purpose of Compensation for Loss of Support

Compensation for loss of support is a provision regulated in the relevant articles of the Turkish Code of Obligations (TBK). tort liability . This compensation covers the losses suffered by those to whom the deceased made a regular and actual economic contribution during his or her health, due to the disappearance of this support. represents loss of income Crimes requiring. Legally, this damage is not directly to the deceased, but is a “reflective harm” to third parties it supports Payment of. Its purpose is to provide the assistance, service, care and supervision that the support would provide if the living person were living.

Who May Be Entitled to Compensation for Loss of Support?

Persons who may be entitled to compensation for loss of support are those who actually provided support to the deceased during his lifetime or are expected to provide support in the future. In this context, first-degree relatives such as the spouse, children and parents of the deceased, as well as other people who can be proven to have actually received economic support, may also be included. The important thing is is not a lineage or kinship relationship, but the existence of a support relationship.

According to the Supreme Court decisions, the concept of support includes not only monetary contribution but also acts of service. For example, it is accepted that housewives provide financial support to the family by doing domestic services, and the care and service that elderly parents receive from their children is also considered support. It has been determined that even children contribute economically to the family budget in various ways or help with household services from a very young age.

Also, being wealthy does not prevent them from claiming compensation for loss of support. The Supreme Court has ruled that inheritance and inheritance income will not be associated with support compensation and that compensation should be calculated only on the equivalent earnings in return for the physical and intellectual contribution of the deceased support.

Basic Principles and Problems in Compensation Calculation

Compensation calculations are of great importance in determining the victim's damage in a fair, objective and predictable manner. However, in this area There is no harmony between institutions and organizations and there is confusion.. The income linking procedures of the Social Security Institution and the compensation calculation formulas of insurance companies and the methods adopted in the judiciary are quite different from each other.

Diversity in Calculation Methods and the Supreme Court Approach

Used in compensation calculations three main actuarial methods is located:

• Progressive Annuity Method: This is a method requested by victims and frequently used in practice. In this method, known period earnings are calculated without discounting and the period earnings to be processed are determined by taking the earnings of the last year as a unit, increasing by 10% for each year and discounting by 10%.

• Fixed-Term Annuity Formula-Technical Interest Method (1.65 Ratio): It is stated that it is found to be more balanced by those responsible for compensation (especially insurance companies). However, with the decisions of the Constitutional Court, the legal basis of the tables annexed to the general traffic conditions and the application of 1.8% technical interest has been eliminated. Despite this, some institutions tend to continue this practice.

• Average Earnings and Fixed Rent Method: This is another actuarial method.

Supreme Court, requires calculations to be made according to its own principles. and any calculation method or formula that has not been adopted is not valid in the judiciary. Experts must comply with these principles in order to ensure that local court decisions are not overturned.

Parameters Considered in Compensation Calculation

1. Gain Level: The victim's monthly earnings are taken as the basis for calculating the loss of income. If the person does not have a job or earnings, the calculation is made based on the legal minimum wage. It is emphasized that the real earnings may not be the earnings on the pay slips or tax declarations, even if signed, and if necessary, comparable earnings from professional organizations should be investigated.

2. Age and Support Period: The victim's age and expected life expectancy are important parameters in determining the amount of compensation. Life tables (formerly PMF-1931 French life table, more recently TRH 2010 National Mortality Table) are used to determine these periods. The duration of support is determined according to the educational level of the children and the average life expectancy of the spouses and parents. The possibility of the widow remarrying is also taken into account.

3. Separation of Processed and Will-Run Periods: Compensation accounts are generally divided into two as the "processing period" between the event date and the report/judgment date and the "processing period" afterwards. While real data is used in the current period and no discount is made, calculations based on assumptions are made in the current period.

4. Passive Period Loss: Since it is accepted that even people in the retirement period support each other by "helping and serving" each other, the passive period loss should be calculated based on the legal minimum wages.

Payment Method and Discount Discussion

Compensation in current practice in cash and lump sumis insufficient to provide long-term economic security for victims, it can also create a disproportionate burden for those responsible for compensation. While actuarial calculations state that prepaid compensation should be subject to a certain discount rate, it is emphasized in the Supreme Court decisions that no discount is applied for accrued period losses. If

The Role of Expert Witness and Lawyer

Although the main problem in the monetary evaluation (transformation into compensation) of human damages seems to be the calculation methods, the important thing is are solid and correct “legal justifications”. Calculation formulas are like empty molds; They must be filled with legal evaluations. For this reason, it is emphasized that compensation calculations should be made by experts who have legal training and are specialized in their field.

Conclusion: The Quest for Objectivity and Fairness

Although there is a need for a regulation in our law regarding the determination of non-pecuniary damages on an objective basis, a similar uncertainty continues in pecuniary damages such as deprivation of support. Although the need to ensure objectivity is emphasized in the Supreme Court decisions, concrete determinations on how this will be achieved are lacking.

These non-uniform methods of compensation calculations hinder the determination of fair and realistic compensation. It is necessary to establish a system that is objective, predictable, compatible with economic realities and maintains a reasonable balance between the parties.. In this context, it is important to establish a more transparent and fair process by examining the distribution of applications according to subjects through institutions such as the Insurance Arbitration Commission. Among the suggestions is the establishment of a fund system that will allow compensation to be paid in monthly periods instead of lump sum.