According to the additional article 12 of the Law No. 1219, on the Law of “Application of Medicine and its Branches Practice, Medicine and Medical Sciences”, physicians, dentists and specialists as per specialist legislation, who are working in public health institutions and organizations are obliged to have an insur-ance against the damages that can be claimed from them by the third parties due to medical malpractice and against the recourse to be made to them by their own institutions. Half of this insurance premium is paid by themselves and the other half is paid from the revolving funds in institutions with revolving funds, and in institutions which do not have revolving funds, it is paid from the institution’s budget. Those persons who work in private health institutions and organizations or who perform their profession freely are obliged to take out professional liability insurance in order to cover the damages that may be caused to persons due to medical malpractice and therefore the recourse to be made to them. Compulsory professional liability insurance is made by those who perform their profession freely, and those working in private health institutions and organizations, by the relevant private health institutions and organizations. Half of the insurance premiums of the employees working in private health institutions and organizations are paid by themselves and half by the employers. In this study, the application of compulsory financial liability insurance of the physician’s will be examined in the light of the decisions of the Court of Cassation and the Insurance Arbitration Appeal Arbitrator Board.