The revisions made to the tariff relating to Motor TPL on 01 January 2007 and 01 August 2007 led to a 39% increase in limits of cover and 19% increase in premiums compared with 2006, and granted the insurance companies the flexibility to apply certain ratios of bonus (5%) and malus (10%) on the basis of the premiums stated in the tariff. Despite a certain level of growth achieved both in premium production and in the number of insureds thanks to the uniformity of practice among the insurance companies ensured by TRAMER, the Traffic Insurance Information Center set up under the Association of the Insurance and Reinsurance Companies of Turkey, this branch posted loss in 2007.

Although the Compulsory Highway Transport Liability insurance was introduced in 2004, the anticipated development has not been achieved due to problems encountered in the carrier licenses issued by the Ministry concerned.

Milli Re's premium income for this branch stood at TRY 87,197,061 in 2007, which represents a year-on decline by 19%. This is a result of withdrawal from the reinsurance contracts with certain ceding companies or the reduction of shares therewith. Loss ratio realized as 89% in this branch, as an outcome of the losses paid on policies from previous years and outstanding losses. Consequently, TRY 1,165,178 technical loss was sustained
in the retained account in this branch.

Milli Re's premium income for Motor TPL (Traffic) branch stood at TRY 87,197,061 in 2007.