Azerbaijan, Baku, 20 June / Trend A.Akhundov /
Azerbaijan's accession to the Green Card international system of civil liability insurance of vehicle owners would require the introduction of new financial regulations for insurance companies, the head of the State Insurance Supervision Service under the Ministry of Finance of Azerbaijan Namiq Khalilov told reporters on Thursday.
According to him, work is underway on the introduction of amendments to the law 'On mandatory types of insurance' and the charter of Compulsory Insurance Bureau for accession to the Green Card system.
"There are certain conditions for joining the system. It is necessary to legislatively define a structure that will serve as the Green Card Bureau in the country and specify its functions and responsibilities. Financial requirements for companies willing to join this system will also be determined and in particular the requirements for reinsurance. Risks should be transferred to reinsurance companies with high ratings," Khalilov said.
Changes are prepared in accordance with international regulations as well as the requirements of the Council of Bureau (International Association of National Motor Bureau) that manages the system.
According to Khalilov, all insurance companies engaged in compulsory insurance of liability of vehicle owners (CTP) will have the right to connect to the system.
"However, I do not think that all of these companies will want to join because this will require additional financial guarantees," he said.
The Azerbaijani Ministry of Finance and the Compulsory Insurance Bureau have already completed preliminary preparatory work to connect to the system.
The Council of Bureau gave a preliminary positive conclusion with regards to Azerbaijan's accession to the system. Azerbaijan will be able to connect to the Green Card within two years which is 2014-15.
"If the process goes in accordance with the planned pace, Azerbaijan will join the Green Card in 2015," Khalilov said.
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. That is according to the agreement 'On the Green Card', insurance policy for civil liability of motor vehicles (CTP) issued by any member state of the agreement, it shall be valid in another country that is a member of the agreement.
The Green Card National Bureau is part of a single organisation under the Bureau Council with headquarters in Brussels. The system covers 46 countries, namely Russia, all European countries, Israel, Morocco, Tunisia and Iran.
The Motor Bureau in Azerbaijan started operations in December 2011. It was established in accordance with the requirements of the law 'On mandatory types of insurance'.