Azernews.Az

By Nigar Abbasova

Azerbaijan and Russia will sign a bilateral agreement on the Green Card System, said Elkhan Guliyev, Executive Director of the Compulsory Insurance Bureau (ISB).

“Last week, Russia approved its readiness to sign a bilateral agreement. The talks on application of policies in the occupied territories of Azerbaijan lasted for more than 6 months. The issue has been decided,” he said.

He underlined that the policies will not be valid on the occupied territories of Azerbaijan. “The issue will get actuality after the release of the Armenian-occupied territories,” he said.

Commenting on the issue of increase in compulsory insurance tariffs, he said that Azerbaijan experiences no need in the increase. “The unprofitability rates of Azerbaijan are considerably lower as compared to the figures of the other countries, where the rate amounts to 98-99 percent,” he said.

He stated that the profitability of the compulsory insurance may be increased by means of tackling an issue of commission payments, which is the main problem that face companies engaged in the sphere of compulsory insurance.

“The Financial Markets Supervisory Board is currently engaged in dealing with the issue. The operations of the Supervisory board are expected to increase the profitability rates,” he added.

The Green Card is an international system of motor vehicle liability insurance which functions since 1951. The system was introduced in Azerbaijan in 2016.

The main objective of the system is settlement of claims of persons injured as a result of road accidents involving foreign registered vehicles, and facilitation of the movement of vehicles across international borders by the use of an internationally acceptable insurance document. The Green Card system currently comprises 47 countries.

ISB performs a function of a national insurance bureau of the international Green Card system in Azerbaijan.

As much as 16 companies are the members of ISB with 13 being eligible for the sale of compulsory insurance policy. The main objective of the Bureau is protection of interests of insured persons and third parties who suffer damages and losses, as well as for the purpose of stabilization and development of the system of compulsory insurance and fulfillment of duties prescribed by the law.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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