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Azerbaijan joins Green Card insurance system

29 May 2015 17:26 (UTC+04:00)
Azerbaijan joins Green Card insurance system

By Nigar Orujova

Azerbaijan has joined the international Green Card System of motor insurance, Azerbaijan’s Compulsory Insurance Bureau reported on May 29.

The decision on Azerbaijan's joining the system was made in Poland at a session of the General Assembly of the Council of Bureaux, which is the managing organization of the Green Card System.

The system will start operating in Azerbaijan from January 1, 2016.

The Green Card International System has been functioning since 1951. Its main goal is the settlement of claims of victims of road accidents committed with the participation of foreign car drivers, in line with the national legislation of the country, where the traffic accident took place.

In Azerbaijan, the Compulsory Insurance Bureau will serve as the Green Card System’s national insurance bureau.

According to the agreement "On Green Card", an insurance policy for third party liability issued by any member country of the agreement is valid on the territory of another country which is party to this agreement.

The National Bureau of the Green Card is included in a single organization - the Council of Bureaux (headquarters in Brussels) which operates under the auspices of the Working Party on Road Transport of the Inland Transport Committee of the UN Economic Commission for Europe.

The system of the Green Card covers 46 countries: Russia, Europe, Israel, Morocco, Tunisia and Iran.

In Azerbaijan, the functions of the national insurance bureau of the International System Green Card will be performed by the Bureau of Compulsory Insurance ISB.

Only companies which are members of the Bureau and have the right to engage in compulsory insurance of civil liability of vehicle owners will be able to connect to the system.

The Bureau will provide its members with the Green Card blank in a centralized manner.

Car owners will have to purchase Azerbaijani Green Card before entering the territory of the country, that is a member of the system. At the same time, car owners registered in those member states which are part of the system, will not need to contract border insurances.

If a car owner holding an Azerbaijani Green Card suffer losses in the territory of a member country, then the sum of the insurance payment will be determined by the largest amount provided in the legislation of the country.

The ISB will be responsible for all payments. The ISB includes 15 companies, 11 of which have the right to sell policies of compulsory third party liability insurance.

According to the legislation, the Bureau's insurance reserves will be formed by payments from all ISB members.

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Nigar Orujova is AzerNews’s staff journalist, follow her on Twitter: @o_nigar

Follow us on Twitter @AzerNewsAz

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