Azernews.Az

By Nigar Abbasova

A bilateral agreement signed between Azerbaijan and Russia on the application of Green Card System of motor insurance came into effect from August 1, Azerbaijan Compulsory Insurance Bureau (ISB) reported.

From now on, Azerbaijani and Russian car owners will get insurance policies at the entrance to the territories of Russia and Azerbaijan, accordingly. The policies will be valid at the territories of both countries.

Azerbaijan citizens, who hold Green Card policies that are valid in Ukraine, Belarus and Moldova, will have a right to exchange their policies for free for analogous ones that include the international country code of Russia (RUS).

The Green Card is an international system of motor vehicle liability insurance which functions since 1951. The system was introduced in Azerbaijan in 2016. As much as 1,444 insurance contracts with the total worth of 224,000 manats ($146.3) have been signed in January-May 2016.

Azerbaijan and Russia signed the agreement on the Green Card System in June 2016. Negotiations with the Russian side on the mutual recognition of the system have dragged out because of the issue relating to occupied territories of Azerbaijan. The talks on application of policies in the occupied territories lasted for more than six months. The sides had reached a consensus on non-application of the insurance policies in the occupied territories of Azerbaijan.

Earlier, Elkhan Guliyev, Executive Director of ISB said that the issue will get actuality after the release of the Armenian-occupied territories.

The main objective of the Green Card System is settlement of claims of persons injured as a result of road accidents involving foreign registered vehicles, ensuring that victims of accidents involving foreign registered vehicles are not disadvantaged as well as facilitation of the movement of vehicles across international borders by the use of an internationally acceptable insurance document. The Green Card system currently comprises 48 countries.

Responsibility for issuing Green Cards is given to national organizations. ISB performs the 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.

Some 25 insurance companies are currently operating in Azerbaijan.

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

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