AZERBAIJAN will apply the Green Card system starting January 2016

12 February 2015 — Olesea ADONEV
The President of Azerbaijan has approved the amendments to the Law of the Azerbaijan Republic regarding "Compulsory Insurance". Amendments entered into force on December 25, 2014. The main part of the amendments concerned the fact that Azerbaijan joined the Green Card System. The amendments to the Law on Compulsory Insurance endorsed by the country's leader and the processes regulating the activity within the Green Card system will enter into force starting January 1, 2016.

According to the amendments, the Green Card will be issued only by Compulsory Insurers Bureau's member companies which have a license for issuing compulsory civil liability insurance for vehicle owners and which fulfill the minimum capital requirement for insurers in Azerbaijan. Calendar contributions of insurers within the Green Card system will be 5% of all premiums received on compulsory motor insurance during the month.

The insurance reserves of the Compulsory Insurers Bureau will be formed from payments of the bureau members, according to the law.

The law indicates that the car owners have 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.

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

Share |