Azernews.Az

By Amina Nazarli

Azerbaijan’s insurance companies will be able to issue insurance policies on compulsory insurance of liability of owners of vehicles (OSAGO) for countries of the European Economic Area starting from April 1.

This will be possible under the Green Card System, a protection mechanism for victims of cross-border road traffic accidents, the Compulsory Insurance Bureau reported. The system is functioning in Azerbaijan since January 2016.

Only companies that are members of the Bureau and have the right to engage in OSAGO are able to connect to the system.

Furthermore, the Green Card issued in Azerbaijan will be effective in Switzerland, Tunisia, Bosnia and Herzegovina, Macedonia, Montenegro, Turkey, Iran, Moldova, Ukraine, Andorra, Albania and Morocco, while Green Card policies, issued in these countries will be valid in Azerbaijan.

As the Green Card bureau of Russia, Belarus and Israel have not signed the corresponding agreement with Azerbaijan, Azerbaijani drivers will have to conclude frontier insurance contract, while visiting these countries.

Car owners 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.

In case 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 Green Card system covers a total of 46 countries.

In Azerbaijan, the Compulsory Insurance Bureau performs the functions of national insurance bureau of the international Green Card System.

The CIB participants include 16 companies, 12 of which have the right to sell compulsory third party liability insurance policies.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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