The General Conditions for the Compulsory Financial Liability Insurance of Motor Vehicles, published in the Official Gazette (date:14/05/2015, issue no. 29355) and entered into force on 01/06/2015, endeavors to define the liability of the insurer towards third parties. As the judicial decisions were not in line with the purposes and expected results of the General Conditions, several amendments were introduced to the Highway Traffic Law, with the Law No. 6704, published in the Official Gazette on 26/04/2016. Following these amendments, the Court of Cassation’s 17th Civil Chamber endeavored to demonstrate the nature and effects of the aforementioned General Conditions and its implications to the legal relationship between parties. The general terms of insurance have been subject to controversy as part of the academic discussions and judicial decisions. The legal qualification of the general condition and the effect of the agreements on the rights and debts of the parties constitute the essence of the debate. To summarize, the situation of the general conditions in the legal order and its effect on the rights and debts of the parties are briefly discussed by considering the recent changes in the law, in this article.