According to Total News, Mohammad Ali Soleimani, describing the features of green Insurance, said, Green Card Insurance is actually an international third-party insurance. Third party vehicle insurance only covers damages that occur within the country’s borders. If the goods are transported abroad, it is necessary to obtain a green card insurance.
He considered the provision of a green card for land motor vehicles to travel in the geographical areas of the countries that are members of the Green Card Convention as essential and added, the international green card system started its official activity in 1953, with the aim of supporting the victims as well as drivers in traffic accidents, based on the recommendation number 5 of the road transport sub-committee of the Economic Commission for Europe affiliated to the United Nations.
Soleimani said that the main condition for membership in the green card system is the presence of T.P.L (Compulsory Third Party Liability) insurance law and added, at present, 48 countries, mainly European countries, are members of the green card system, among which Turkey and Azerbaijan are also members.
A member of the board of directors of Tehran Rakhsh International Transport Company, announced the background of Iran’s membership in the Green Insurance Convention on May 26, 1977, and added, With the approval of the law of incorporation of the international system of civil liability of land motor vehicles, in contrast to the third party and its executive regulations, it joined this system and according to the regulations of the Iranian office, a member of the international green card system, in the Central Insurance of Iran, it started its activity under the title of Green Card Administration.
He added, Life and financial damages to third parties are announced every year by the Green Card Central Office based on the laws and regulations of the country where the accident took place, and the determination and minimum legal obligations of the member countries. It should be noted that the green card insurance premium also varies according to the type of vehicle, duration of travel and the amount of obligations of the destination country or countries.
Pointing to the suspension of Iran’s membership of the Green Card Convention, Soleimani said, the Green Insurance Council of the United Nations Economic Commission due to the consequences of sanctions regarding the receipt and payment of damages for trucks covered by global green insurance through banking networks and also regulations of the ban of the European Union (2271/96) and the communication problems with the Central Insurance of Iran have suspended the possibility of using green insurance for the Central Insurance of Iran from the end of 2023 and have made cooperation between them with international insurers a challenge.
A member of the board of directors of Tehran Rakhsh International Transport Company considered the provision of green insurance from other countries as one of the consequences of this suspension and added, in case of suspension of Iran’s green insurance from 2024, Iranian trucks must obtain their green insurance from other countries. This in turn causes many problems and issues. The most important of them is the presence of brokers and the costs that transport companies have to pay directly or indirectly.
Soleimani named Azerbaijan and Turkey among the neighboring countries from which insurance can be obtained and said, the only countries that has the same border with Iran and use this insurance are Azerbaijan and Turkey, which currently you can buy insurance from Turkey. In this regard, other problems will arise; because they want Turkish trucks to enter the country’s transport fleet, and even if they accept it, it will be temporary. The green card is issued in any country, it does not work in that country, so in case of using Turkish green insurance, 2 insurance policies must be prepared to cover this additional cost.
He considered the increase in the country’s dependence on foreign fleets for export and import as one of the other problems of this suspension and added, after traveling the domestic route, trucks must purchase an insurance policy at the border, which is necessary for trucks with Iranian and foreign license plates. If drivers are not able to provide green insurance for trucks in transit routes, the activity of the Iranian fleet is practically limited to the borders of the country, and the country’s dependence on foreign fleets for imported and exported goods, especially the basic goods of the country (medicine, raw materials and food) increase sharply.
A member of the board of directors of Rakhsh International Transport Company of Tehran, considered the negotiation to lift the suspension as an obligation and said, “The issue of green insurance is an important issue for the transportation industry.” Except for Iran, Azerbaijan and Turkey, no other country is a member of the convention. Other countries, such as Armenia, are waiting in line to join the convention, because it is very difficult to become a member. Regarding the suspension of Iran in the green insurance system, it is necessary to consult with the United Nations.