As of 1 July, changes to the Green Card or compulsory international liability insurance policy form came into force, stipulating that the Green Card will no longer have to be issued by insurers on a special green form, and it will be up to each Member State to decide what color Green Card “issue.
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“Car owners can also use the international compulsory civil liability insurance policy on a white sheet of paper when crossing the border, moreover, these changes are valid in all European countries where the Green Card insurance system operates,” explains the Latvian Motor Insurers’ Bureau (LTAB), Jānis Abāšins, Chairman of the Board, adding that all system member states will be subject to a two – year transition period, when the “Green Cards” issued in the previous format will still be valid.
These changes will also apply to frontier insurance contracts concluded in respect of a vehicle registered in a country which is not a country of the European Economic Area.
“Green Card” means an international insurance contract concluded for a vehicle registered in the European Economic Area and intended for road traffic in Albania, Belarus, Bosnia and Herzegovina, Iran, Israel, Russia, Macedonia, Montenegro, Morocco, Moldova, Tunisia, Turkey and Ukraine, or cross any of these countries. The owner of a vehicle registered in the Republic of Latvia may conclude an international insurance contract only with an insurer that is a member of LTAB.
The purpose of the “green card” is to ensure the protection of vehicle owners abroad in respect of damage caused to a third party in a traffic accident caused by the driver’s fault (RTA), to ensure the property interests of RTA victims both abroad and in the RTA victim’s country of residence. The Green Card also avoids the need for drivers to take out a border insurance contract when crossing the borders of countries with a compulsory civil liability insurance scheme.
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