The corresponding decree was signed by President Ilham Aliyev in connection with changes to the law "On compulsory types of insurance.”

The cabinet of ministers of Azerbaijan was instructed to prepare the formal appeal on the basis of the proposals of the ministry of finance.

In addition, monitoring on the implementation of obligations under the standard insurance contract on compulsory insurance of civil liability of car owners will be implemented by the ministry of internal affairs, within the boundary insurance contract and Green Card system – by the state customs committee.

In Azerbaijan, contracts on Green Card system will be concluded for 3, 6 and 12 months.

The provisions concerning the application of Green Card system in the law "On compulsory types of insurance” enter into force since January 1, 2016.

The head of the State Insurance Supervision Service under the Ministry of Finance Namig Khalilov earlier told Trend that if the changes to the law "On compulsory types of insurance,” which provides the legal framework for Azerbaijan’s joining the international Green Card system, will be accepted till the end of 2014, Azerbaijan will be able to join the system in 2016, otherwise this issue will be considered in a year.

"If the changes to the law are accepted at the end of 2014, the Committee on Admission of New Members will consider this issue in January 2015, and if the decision is positive, the country will be adopted in its ranks at the annual meeting of the Council of Bureaus in May 2015 and will join the system since January 2016,” said Khalilov.

In Azerbaijan, the functions of the national insurance bureau of the international Green Card system will be carried out by the compulsory insurance bureau (ISB), according to the amendments to the law.

ISB is defined as a specialized organization for relations with the Green Card Council of Bureau.

Only companies that are members of the Bureau and have the right to engage in compulsory insurance of civil liability of vehicle owners (CTP) will be able to connect to the system.

The Bureau will provide its members with blanks of Green Card in a centralized manner.

The law indicates that the car owner has to buy Azerbaijani Green Card, before entering the territory of a country, which is a party to the system. At the same time, the owners of vehicles, registered in countries, participating in the system, will not need to make border insurance contracts.

If the car owner with the Azerbaijani Green Card bears losses on the territory of a member state of the system, the largest amount provided in the legislation of one of the countries will be determined as the sum of the insurance payment.

ISB will be assigned responsible for payment.

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.

(Trend)