The Green Card System was founded in 1949 on the basis of recommendation (Recommendation No.5) sent to the Government of Member States by Working Party on Road Transport of the Inland Transport Committee of the Economic Commission for Europe of the United Nations (UNECE) and has been applying since January 1st 1953.
The Green Card system is an agreement on mutual recognition of the insurance certificate of civil liability insurance of vehicle owners between the participants of this system, i.e. the country members. The main objective of the System consists of the provision of the reimbursement of the damage in accordance with the legislation of the country where accident took place caused by the drivers of the vehicles visiting any country which is member of the system, whose liability is insured in conformity with the national legislation of the country where they are originating. Currently the System consists of 48 member countries.
The main objective of the System consists of the provision of the reimbursement of the damage in accordance with the legislation of the country where accident took place caused by the drivers of the vehicles visiting any country which is member of the system, whose liability is insured in conformity with the national legislation of the country where they are originating. For this purposes, on the base of mutual guarantee of the member Bureaus, centralized provision system – «Green Card» insuring liability of the drivers in the course of travel to the foreign countries by motor vehicles is provided. According to this system, the third party liability insurance policy of motor vehicles issued by member country shall be considered valid in the territory of the other countries which are Parties to the system.
Loss compensation within the framework of the Green Card system, a Green Card Bureau was created in each of the participating countries. These Bureaus guarantee that third parties injured in a road accident (both property damage and damage to the health of third parties) caused by foreign drivers will be compensated in the country where the accident occurred. Subsequently, the branches of the Green Card of the country where the incident occurred are entitled to reimburse the amount of insurance payments made by the Green Card office of the country to which the holder of the Green Card belongs.
Compulsory Insurance Bureau of Azerbaijan Republic for the first time applied to the Council of Bureau for the accession to the Green Card in 2012. The response to this request was positive and the Bureau was acquainted with the legal and other requirements necessary for the bureaus willing to join the system.
For the accession of Azerbaijan Republic to the Green Card System, there were made relevant amendments to the Law of Azerbaijan Republic “On Compulsory Insurances” on 28 November 2014.In the General Assembly of the Council of Bureau held in the city of Sopot, Poland on 28 May 2015, there was confirmed the accession of Azerbaijan to the International Insurance System “Green Card” with the effect from 1st January 2016.