International Motor Insurance Systems

In an international motor insurance card system, insurance authorities and organizations of multiple states around a region enter into an agreement to provide motor insurance against accidents caused by visiting drivers rather than resident drivers. Among benefits is that drivers need not obtain insurance at each country location visited. Europe established the first multiple motor insurance system in 1949, the Green Card system.

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The Green card certificate is issued by the Council of Bureau, which was relocated in 2006 to Brussels from London. Within the system, each member state has its own Green Card Bureaux established by state insurance companies, and recognized, approved and under the legal jurisdiction of the respective state. The purpose of each Green Card Bureau serves two primary functions:

1. The Bureau in the country of accident must handle and settle accident claims involving any visiting motorist in accordance with Compulsory Third Party Motor Insurance.

2. The Bureau must guarantee Motor Insurance certificates, Green Cards, will be issued by member insurance companies to policyholders.

The Multilateral Agreement recognizes three state Green card membership types:
1. European Economic Area (EEA) members;
2. Andorra, Croatia and Switzerland, who are covered by the EEA Multilateral Agreement, section III;
3. All other Green card members.


Although the Green Card System is principally European, not European countries are members, and include non-European neighbors such as those near the Mediterranean Sea. The Council of Bureaux generally allows countries adjacent to the Mediterranean Sea, west of the Caspian Sea and the Urals. However, Iraq and Iran are or were members. Iraq was a member for a decade up until 1992.

Countries also participate in the Green card system via a foreign national bureau. Liechtenstein participates through Switzerland, for example. As does Monaco, Montenegro, San Marino and Vatican City, through France, Serbia and Italy, respectively.

Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, Kazakhstan, Georgia, Azerbaijan, and Armenia are not members of the Green card system, although they are UNECE members and fall within geographical coverage.

Jordan, Mauritania, Kosovo, Transnistria, Abkhazia, South Ossetia, Nagorno-Karabakh, Northern Cyprus, Palestine, and Sahrawi Republic are also within geographical scope but do not participate in the Green card system.

Other international motor insurance systems include the Orange card system, the Blue card system, Pink card system, Brown card system, Yellow card system, and the proposed White card system.

The orange card system covers AL members and primarily covers North Africa and the Middle East. Member states include Yemen, United Arab Emirates, Tunisia (a Green card participant), Syria, Sudan, Somalia, Saudi Arabia, Qatar, Oman, Morocco (a Green card participant), Mauritania, Libya, Lebanon, Kuwait, Jordan, Iraq, Egypt, Bahrain, and Algeria.

The Blue card system covers ASEAN members, principally states of South East Asia. Its participating members are Vietnam, Thailand, Philippines, Indonesia, Myanmar, Malaysia, Laos, Cambodia, and Brunei.

The Pink card system covers members of the CEMAC and applies to Central Africa, namely Equatorial Guinea, Gabon, Congo, Chad, Central African Republic, and Cameroon.

The Brown card system covers members of the ECOWAS and applies to Western Africa.
States covered include Togo, Sierra Leone, Senegal, Nigeria, Niger, Mali, Liberia, Ivory Coast, Guinea-Bissau, Guinea, Ghana, Gambia, Burkina Faso, and Benin. Cape Verde does not participate.

The Yellow card system covers members of the COMESA and applies to Eastern Africa.
Zimbabwe, Zambia, Uganda, Tanzania, Rwanda, Malawi, Kenya, Ethiopia, Eritrea, DR Congo, and Burundi are participants. Swaziland, Sudan (an Orange card member), Seychelles, Mauritius, Madagascar, Libya (an Orange card participant), Egypt (an Orange card participant), Djibouti, and Comoros do not participate.

A White card system to cover members of the ECO excluded by geographical scope of the Green Card system has been proposed. Members of UNECE, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan are members of this system. Azerbaijan, Iran, and Turkey, members of the Green card system, and Afghanistan are also under the White card system proposal.
 

 

Copyright Hyram King 2008