Green Card System Basic rules Mariusz W. Wichtowski Baku 4.07.12

Green Card SystemBasic rules

Mariusz W. WichtowskiBaku 4.07.12

Key terms

• Protection

• Trust

• Uninsured driving

• Monitoring

• Financial Guarantee Criteria

• Fraud

Do we remember?

• Paradox with consequences

• Recomendation No 5 1949

Council of Bureaux

• Non political organization

• Technical aspects only

• Since 1 January 1953

• Facilitator of international road traffic and victim’s protection

Objectives

• Free flow of cross border traffic

• Guarantee to victims

Some statistics

• Members of the GC System 46

• Multilateral Agreement 33

• GC basis 13

Some statistics

• Population of Europe 750 million

• No of vehilcles 350 million

• EU yearly died 50.000

• EU yearly injured 150.000

Green Card Claims

• 2010 381.353

• 2009 345.746

• 2005 342.963

• 2000 337.361

• 1999 291.730

0

50

100

150

200

250

300

350

400

1999 2005 2009 2010

292 343 346

381

Green Card Claims

Green Card Claims

over 1,7 billion Euro/ year

Mutual trust

• Basis of the GC System

• Pay – Cry – Dispute

• Close cooperation

• Stress on insurers

• Consequence – on all market

How to become a member?

• National Bureau

• MTPL law

• Financial guaranties

• Undertaking to UN

How to become a member?

• Transitional member

• Period 10 years

• Financial guaranties

• Monitoring

Important bodies

• Bureaux

• Agents

• Correspondents

Competence of the Bureau

Handling Bureau:

• Claims settlement in the country where

accident happened

• According to legal system of that

country

• Independent of position of the guaranteeing Bureau

Guaranting Bureau:

• Reimbursement of outlays

• Guarantee function

Financial aspects

• Sufficient financing

• Difference of the economiclevel in individual regions

• Law of the country of accident determines minimum amounts insured and compensation

Financial aspectsSelby Train Crash (UK) Damage: about 50 million Euro /

10 persons killedHerborn (D): Damage: about 8 million Euro

Mont-Blanc Tunnel (FR) Damage: about 464 million Euro /

39 persons killed

Gotthard-Tunnel (CH) Damage: about 14 million Euro /

11 persons killed

Mutual trust

• Basis of the GC System

• Pay – Cry – Dispute

• Close cooperation

• Stress on insurers

• Consequence – on all market

Monitoring

Subjects of the monitoring:

► new applicants

► transitional members

► full members

Forms of Monitoring

► monitoring► preparing of the Financial Criteria► checking of the financial standing ► assistance► dealing with complains► reporting to the Man Com

Financial Guarantees Criteria

• Why we need it?

• Applicability of the Criteria

• Period of validity

Financial Guarantees Criteria

• For CoB members only

• Type of financial guarantees

• Standard of the security

• Bank guarantee

• Reisurance program

Sanctions

► obligatory monitoring

► financial guarantees

► financial penalties

► temporary suspention

► termination of membership

What about scope?

Do we know where

are the borders of Europe?

and

What means border in our

days?

Are we all protected?

• We all?

• At the same level?

• Are we statisfied with existing level of the protection?

Aims for the future

• Equal rights for the road users

• Real guaranties for victims

• One aim different methods

• Any common solution?

Thank you very much for your

kind attention