When paying for damage or diminished value, insurers often ask for a release, a settlement form or a settlement and release agreement to be signed. These documents are intended to show that payment has been completed and that the injured party has no further claims. We summarise what you need to know before signing.
What are these documents for?
A release is a document in which the creditor declares that the debtor is discharged from the debt. In insurance payments it usually contains statements such as "I have received all my losses arising from the accident and have no further claims".
The law protects the injured party
Article 111 of the Highway Traffic Law provides special protection against certain agreements that are against the injured party. Under the law, agreements that remove or limit the liability of the operator or the insurer are invalid. In addition, an agreement or settlement made with the injured party can be annulled within two years of the date of the agreement where the compensation paid is clearly inadequate in equity.
Releases in Court of Cassation practice
In practice, releases containing a specific payment amount are in many cases accepted as a receipt showing only that this amount was paid. Under this approach, it may be possible to claim actual loss exceeding the amount paid. However, each document is assessed according to its own content and the circumstances of signature.
Checklist before signing
• Is diminished value shown as a separate item in the payment letter?
• Does the diminished value paid cover your vehicle's actual diminished value?
• Does the document contain broad statements such as "I waive all my claims"?
• Did you receive a copy of the document?
Reservation of rights
If you wish to accept the payment while preserving your right to claim the balance, you may add a reservation to the document such as "my rights to claim and sue for any excess are reserved". If the insurer does not accept this reservation, it is advisable to assess the matter before signing.
You can use the free Kaza Dosyam tool to keep your accident information in an organised file: kazadosyam.katarhukuk.com
This article is for general information only and does not constitute legal advice. Each specific case must be assessed in its own circumstances. Updated: 10 October 2026
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