By Vusala Abbasova
At a time when no one is insured from undesirable incidents, one seeks insurance as a remedy from post-accident depression.
Azerbaijani citizens will be able to get relief from the stressful expenses related to vehicles, different types of property, life and health, as some insurance services will now also be available in a few foreign countries.
The Compulsory Insurers Bureau (ISB) of Azerbaijan has joined the international insurance Green Card System and will begin service on January 1, 2016.
Azerbaijan will be a full-fledged member of the regional group after having implemented the financial requirements of the Green Card Council as of November 1.
The Green Card System of motor insurance is a compulsory insurance policy for third party liability, issued by any member country of the agreement, and is valid on the territory of any other country that is party to the agreement.
Only companies that are members of the Bureau and have the right to engage in compulsory insurance of civil liability of vehicle owners (OSAGO) will be able to connect to the system, according to the message.
Currently, as many as 12 countries are the members of the southeastern Green Card System of motor insurance, including Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Macedonia, Greece, Iran, Israel, Moldova, Romania, Serbia and Turkey.
Azerbaijan attended the 19th session of the southeastern group of the Green Card System held on October 8-9 in Sarayevo, where head of Compulsory Insurers Bureau Elkhan Guliyev discussed the current situation in the market of the compulsory insurance of liability of owners of vehicles (OSAGO).
Following the session, it was decided that the ISB would be responsible for all payments under the terms of the Council, including preparing and submitting reinsurance contracts.
In accordance with the Council's requirements, Azerbaijan should place five millions manats in an A-rated European bank or even above or get a guarantee letter from one of these banks.
Furthermore, Azerbaijan should conclude bilateral agreements with at least 75 percent of the participating countries signed onto the Green Card system.
At the moment, the Bureau is negotiating with the SCOR reinsurance company and Guy Carpenter reinsurance broker on preparing a program of reinsurance contracts.
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 national legislation.
The Green Card system covers a total of 46 countries, including Russia, European countries, Israel, Morocco, Tunisia and Iran.
Car owners will have to purchase an Azerbaijani Green Card before entering a country that is a member of the system. At the same time, car owners registered in those member states that are part of the system, will not need to contract border insurances.
If a car owner holding an Azerbaijani Green Card suffers 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 includes 15 companies, 11 of which have the right to sell policies from compulsory third party liability insurance.
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