Azerbaijan to join South Eastern Group of Green Card system
Baku, Azerbaijan, Oct. 12
Azerbaijan will enter the South Eastern Group of the Green Card insurance system starting from January 1, 2016, the Compulsory Insurance Bureau said.
According to the bureau, 12 countries are currently among the group's members: Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Macedonia, Greece, Iran, Israel, Moldova, Romania, Serbia and Turkey.
"Azerbaijan will enter the regional bureau after it ensures compliance with the financial requirements of the Green Card system," the bureau said.
The CIB reports that on October 8-9, Sarajevo hosted the 19th meeting of the regional South-Eastern Group of the Green Card system. The CIB representatives took part in the group's meeting for the first time, delivering reports as a guest. During the meeting the head of the CIB Elkhan Guliyev spoke about the current situation on the market of compulsory third party liability insurance and the participation of Azerbaijan in the Green Card system.
It was previously reported that the CIB should meet the requirements of the Green Card Bureaux Council under the relevant financial support until November 1, 2015.
The bureau should prepare and submit a program of reinsurance contracts, as well as a bank guarantee letter on behalf of Azerbaijan in the amount of 5 million manats to the council. In addition, bilateral agreements with at least 75 percent of the participating countries of Green Card should be concluded.
The council office has its own requirements for a bank guarantee, namely Azerbaijan must either place 5 million manats in one of the European banks with A rating or above, or take a letter of guarantee from one of these banks. Bureau negotiates with the SCOR reinsurance company and the Guy Carpenter reinsurance broker regarding the preparation of the program of reinsurance contracts.
ISB participants are 15 companies, 11 of which have the right to sell policies of compulsory third party liability insurance.
The insurance reserves of the bureau will be formed from the payments of the bureau members, according to the law. Insurance payments of the bureau members within the Green Card system will be determined by the government insurance supervision.
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 issued by any member state of the agreement and shall be valid in another country that is a member of the agreement.
The National Bureau of Green Card is included in a united organization - the Council of Insurance Bureaus with headquarters in Brussels, which operates under the auspices of the Working Party on Road Transport of the Inland Transport Committee of the UN Economic Commission for Europe. The system of Green Card includes 46 countries: Russia, the whole Europe, Israel, Morocco, Tunisia and Iran.
Edited by CN