An International Motor Insurance Card System is an arrangement between authorities and insurance organizations of multiple states to ensure that victims of road traffic accidents do not suffer from the fact that injuries or damage sustained by them were caused by a visiting motorist rather than a motorist resident in the same country. Additionally to extending the insurance coverage territorial scope such systems have the benefit for motorists to avoid the need to obtain insurance cover at each of the frontiers of the countries which they visit. There are multiple motor insurance systems around the world, established on regional basis. The first was the Green Card system established in 1949 in Europe, but later other regions followed suit.
Green card system
Around 300000 motor accidents a year were covered in Europe by the Green Card system during the year 2004 according to a survey. In 2016, the Green card system counts around 377666 international accidents within the green card area. At the origin, the green card system was checked while crossing the border. However, inside the single market the green card is no more checked at the cross of internal borders. Insurance for motorized vehicles remains mandatory within the European union. Within the European union, some countries have kept the Green card as their national/domestic system of insurance, which make the green card a compulsory requirement in those nations. The Green Card is usually issued when the insurance policy starts; but in some cases the Green Card is only issued later, upon request. Insurers do not make people pay to have a Green Card, but intermediaries, including insurance brokers, are allowed in the UK to charge an administration fee. The Council of Bureaux maintains an international motor insurance card system in and around Europe where the certificate issued is known by the name Green card. In 1949 the system was established in the framework of UNECE. At later stage the EU and EFTA were involved and reflecting the deepening of the links with them the CoBx secretariat was relocated from London to Brussels in 2006. In each member state of the Green Card System the insurance companies established a Green Card Bureaux operating with the recognition and approval of the government and the activities of the Green Card Bureaux are established by law or regulation in each of the countries participating in the system. Each Green Card Bureau has two functions:
As a "Bureau of the country of the accident", it has responsibility in accordance with national legal provisions for Compulsory Third Party Motor Insurance for the handling and settlement of claims arising from accidents caused by visiting motorists.
As a "Guaranteeing Bureau" it guarantees certificates of Motor Insurance - which are issued by its member insurance companies to their policyholders.
There are three types of Green card member states as per the Multilateral Agreement:
EEA members
members under section III of the Internal Regulations of the Council of Bureaux with the EEA members: Andorra, Serbia and Switzerland.
the rest of the Green card members
Membership and geographic limits
The Green Card System is primarily a European system. It presently includes most, but not all European countries, and some of their neighbors, in most cases bordering the Mediterranean Sea. The position of the CoBx is that the Green card system could be joined by the countries "west of the Urals and the Caspian Sea and countries bordering the Mediterranean Sea", but this rule is not followed strictly as Iran and Iraq fall outside of the area as described. Additionally, insurance companies or national bureaux of some countries participate in the Green card system through foreign national bureaux:
through Switzerland; Liechtenstein is part of the single box as an EEA member
through France
through Italy
through Italy
Former member states:
According to recommendation of the Management Committee of CoBx it is strongly recommended that the geographical scope of the Green card System should be restricted to the following additional states, in accordance with the European and Mediterranean rule: Algeria, Libya, Egypt, Lebanon, Syria, Georgia and possibly upon further consideration Armenia. Instead of expansion further than that, it is recommended to examine arrangements of cooperation with other motor insurance systems. In 2012 it was decided to add Kazakhstan to the list of potential members since part of it lies west of the Urals. Countries that are currently candidates for membership are:
In 2008 the Economic Cooperation Organization asked the CoBx for cooperation and since some of its members are outside the geographical scope of the Green card system, it was suggested that the ECO members would establish their regional motor insurance system - the [|White card system]. At the same time there are discussion whether the scope of the Green card system should be expanded to all UNECE members or to abandon geographical limitations in exchange for criteria based on the density of trade exchanged by road between the candidate country and the existing members of the System. In 2011 Kosovo submitted application for membership, but it was concluded that the conditions of vehicle license plate international recognition and UN membership are not fulfilled. The UNECE Afro-Eurasian members states currently outside the Green card system are: Armenia, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. Other states, falling within the defined geographical scope of the Green card system, but not participating are:
In the single market of the EU and the EEA, international insurance between member states are regulated by specific EU/EEA laws related to insurance against civil liability in respect of the use of motor vehicles, and to the enforcement of the obligation to insure against such liability. Those were amended several times and have been codified:
1st EU Directive, amended by Council Directive 72/430/EEC of 19 December 1972 or Council Directive 72/166/EEC of 24 April 1972
Second Council Directive 84/5/EEC of 30 December 1983
Third Council Directive 90/232/EEC of 14 May 1990
Directive 2000/26/EC of the European Parliament and of the Council of 16 May 2000
Directive 2005/14/EC of the European Parliament and of the Council of 11 May 2005 amending Council Directives 72/166/EEC, 84/5/EEC, 88/357/EEC and 90/232/EEC and Directive 2000/26/EC of the European Parliament and of the Council.
Codified Directive
Article 7 deals with National measures concerning vehicles normally based on the territory of third countries.:
UK withdrawal agreement
With the UK withdrawal UK will no longer be an EEA member state. This means that a green card will be required for British cars entering the EEA, and British victim involved in a European accident may have no choice but to pursue their claim in a foreign country in an unfamiliar language. Such formalities might be avoided if a new agreement — compulsory motor cover within the EEA and ‘third countries’ — is agreed between UK and remaining parties.
There is a proposal for the establishment of White card system between the members of the ECO, if the Green Card system territorial scope could not be expanded to include all of them. Participants are: Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, Uzbekistan.
