Baku, Azerbaijan, Nov. 3
By Azad Hasanli - Trend:
On October 29, 2015 the Compulsory Insurance Bureau of Azerbaijan (ISB) submitted a 5 million euros bank guarantee to the Council of the Bureau of the Green Card system, according to the ISB report Nov. 3.
The program for reinsurance contracts has also been submitted to the Council of the Bureau.
"Currently, a process of signing bilateral agreements with other member countries of the Green Card system has begun," said the message.
It was previously reported that the CIB should meet all requirements set by the Green Card Bureau Council as part of the financial assistance continuing until November 1, 2015.
The bureau must then prepare and submit a program to the council of reinsurance contracts, as well as a bank guarantee letter on behalf of Azerbaijan in the amount of 5 million euros. In addition, bilateral agreements, with at least 75 percent of the participating Green Card countries, should be concluded.
The council office has its own requirements for a bank guarantee, in which Azerbaijan must either place 5 million euros into one of the European A-rated or above banks, or provide a letter of guarantee from one of these banks.
ISB participants include 15 companies, 11 of which have the right to sell compulsory third party liability insurance policies.
The Green Card international system of motor insurance has been functioning since 1951. Its main objective is the settlement of claims of victims of road accidents, in accordance with the national legislation of the country where the accident occurred, with the participation of foreign motorists. This objective is stated in the agreement "On the Green Card", insurance policy for civil liability of motor vehicles, issued by any member state of the agreement and remains valid in any other country that is a member of the agreement.
The National Bureau of Green Card is made up of a united organization - the Council of Insurance Bureaus, with headquarters in Brussels, and operates under the auspices of the Working Party on Road Transport of the Inland Transport Committee of the UN Economic Commission for Europe. The Green Card system includes 46 countries: Russia, the whole of Europe, as well as Israel, Morocco, Tunisia and Iran.