March 28, 2023

By Trevor Hughes…

Be Aware When Buying a Car

When buying a used car, it is vital you do your homework! The car I was driving recently was hit by a Ford Focus. The damage was quite severe to both cars. My car was full comprehensive insurance, the guilty car owner was third party.

The owner of the car which hit me, instructed the garage not to replace the two activated air bags because of cost, which is illegal. But worse to come, he has a small child who sits on the front passenger seat and is at maximum risk should a similar incident happen again.

Not only that, when the time comes to sell the car, the prospective new owner will not be aware that the two airbags are missing and will not be aware the airbags will not be activated if involved in a road traffic accident again!!!!

Residency Health Payment

Foreign residents applying for Temporary Residence who are over the age of 80 years do not have to pay the full amount for the State health provision. The fee due is currently 382 TL per year of application.

Customer Survey

Capital Insurance, recently hired the services of a marketing company to undertake a survey of our customers in order to find out what our customers thought about the service they received when making a claim.

780 customers were called and over 90% of replies gave a positive response. İn many cases, reporting the service as excellent.

Of the 90% satisfied customers, all of them said they would definitely recommend us to their friends and neighbours.

We are studying the 10%, who marked us down and the reason for this, in order to see why the lower marking was given and how we can improve on their comment. We realise we cannot meet 100% satisfaction, as some customers make spurious claims, or they do not meet the criteria laid out in their policy.

Although claims are subjected to excesses, of all the claims to which we responded and settled, excesses were not charged and paid out in full.

Daily Fuel Price Adjustments

The Government has made the decision to amend the Fuel Law, meaning fuel prices can be adjusted (up or down) every working day.

This is to help people budget more effectively if we experience any price increases.

The decision came into effect on Wednesday 16th March 2022, and will be repealed on August 15, 2022.

If you decide to completely fill your tank, taking advantage of lower priced fuel, remember the extra weight of carrying a full tank of fuel will result in your car becoming less efficient!

New Vehicle in the TRNC

The cost of new vehicles could double in price once existing stocks have been sold off. The Government should adjust its tax thresholds, because it collects around 50 percent of the cost of a new import.

They noted that the import of new vehicles had virtually stopped after the pandemic. And I also pointed out that the people’s purchasing power has been eroded because of the depreciation of the Turkish Lira. When stock in the country is depleted, the prices of imported vehicles will increase by at least £2,000 and it will be very difficult for citizens to own a new vehicle.

Importing saloon cars from Japan to North Cyprus has become almost impossible. Before the pandemic, importing a vehicle from Japan cost £3,000. That price has more than doubled to £7,000. After the Pandemic it now costs between £9,000 and £10,000 to import a Japanese vehicle.

The increase in freight charges, taxes and customs charges are the main reason for the increase in the cost of new vehicles.

The cost of importing new cars from abroad is as follows:

Customs: 10%, Shipping Fee: Around £2,500 (if the car comes from Japan) and around £700 (if the car comes from the UK)

Harbour Fees: 4.4%, Security Forces: 2.5%, Price Stabilisation Fund: 20%, Withholding Tax: 4%, Vehicle Registration Fee and Navigation: 6%, VAT: 20%.

Half the cost of an imported vehicle goes to the government in taxes.

You can bet your bottom dollar the insurance premiums will increase. The Government will need to review the maximum payout for the third-party policies in order to cover the increased value of cars.

Car Solar Panels

Each year many expats go back to their home of origin for a number of weeks (known as swallows), or go on their annual holiday.

Although they may have locked the car to keep it safe, little thought is given to whether the car will start upon their return. In this situation, Capital İnsurance will arrange for your car to be collected and taken to a garage of your choice at no cost to you, thus solving the problem. However, many insurance companies do not provide this facility, leaving you to sort the problem out for yourself.

You can purchase one of these solar panels from Amazon and bring it back to the TRNC with you. The cost of same is from 18.99 euro upwards which is little cost to avoid an annoying situation. To connect the panel is very easy by following the straightforward instructions, just make sure the panel is in the sun and your battery will be charged sufficiently to allow your car to start upon your return.

First Time Driving License Applications

When speaking with clients who are applying for a TRNC driving license for the first time, they are informed by us that they will need their completed application form rubber stamped by the Tax Office in Girne orLefkoşa.

Quite often, if you go along to the Girne Tax Office on your own, you may have some difficulty in completing this simple task. All too often, you will be told that you must obtain the rubber stamping from the office in Lefkoşa. This is completely untrue and it’s their misunderstanding of who is responsible for this minor task.

Capital Insurance will provide assistance that will meet with you at the Tax office and circumvent this potentially annoying situation.

The fee is 150.00TL. If for whatever reason your license is declined, the fee will be refunded, but the 150.00 TL will be withheld.

It’s That Time of Time, Again

We are on the cusp of springtime and the Belediye workforce, are out with their grass strimmers. It’s inevitable when the grass is being strimmed, stones and debris get flicked up and onto your windscreen. All too often the stones either chip the screen, or even crack the screen. Remember, even a small chipped screen can lead to a cracked screen and could result in an MOT failure. Does your insurance cover you for such mishaps?

Capital Insurance full comprehensive policies does exactly that, at no extra cost to you. Not only will we replace your damaged screen, but our technicians will also undertake the replacement at your home. This is so convenient to you saving the fuss of having to go to the replacement screen company, and having to leave it there for 24 hours whilst the screen settles in.

Ask your insurance company if your policy covers you for such an incident and where will the screen be replaced?

Clocks Go Forward

On the 27th of March at 12.00 am the clocks go forward one hour.

Bayram Holidays

There are no Bayram holidays in the month of April. However, in May 2022 the Bayram holidays where Banks, Government Offices, and some Local Government offices will be closed from Monday 2nd through to Wednesday 4th May 2022, and re-opening for their normal daily hours of working.

If you wish to ask me a question, please do so in the contact box below.

Best wishes

Trevor Hughes

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