Russian Green Cards will stop working on June 30, RAMI and Russian Central Bank developing alternative
MOSCOW. June 20 (Interfax) - Russian insurers will no longer be able to issue Green Card certificates for travel to the system's member countries, as the Council of Bureaux has suspended the membership of the Russian Association of Motor Insurers indefinitely for sanctions reasons, the association said in a statement.
An identical decision was made with respect to the Belarusian Bureau of Transport Insurance.
Previously issued certificates expire on June 30, 2023, regardless of the period of insurance indicated, and national border insurance policies must be purchased for entry. As a result, the same will be in effect for foreign Green Cards on Russian territory.
Insured events occurring during the validity periods of both Russian Green Cards abroad and foreign Green Cards in Russia through June 29, 2023 inclusive will be settled in the standard manner, with the exception of EU countries, Great Britain and Switzerland, whose Green Card recognition agreements became invalid as of June 1, 2023.
As noted in the association's message, prior to the aforementioned decision, a new agreement was concluded between RAMI and the Belarusian Bureau of Transport Insurance, which ensures the continuity of mutual cross-border insurance for vehicles from both countries based on rules similar to the Green Card. All insured events are subject to settlement in the standard manner.
Bilateral agreements have also been concluded with the bureaus of Azerbaijan and Turkey, according to which, until the expiration of the insurance period, the validity of Russian Green Cards whose insurance periods began prior to July 1, 2023, will continue. Insured events occurring during the period from June 30, 2023 to June 30, 2024 under these cards will be settled in the standard manner. Azerbaijani and Turkish Green Cards will operate on the territory of Russia in the same way.
These agreements also provide for joint activities to form a new system of cross-border motor third party liability insurance under the 'Blue Card' working title. In addition, bilateral agreements are under development with the bureaus of other friendly countries.
The Blue Card is planned to go into effect on January 1, 2024. Until then, new agreements with Belarus concluded after July 1 and before January 1 will be drawn up on standard Green Card forms. The Blue Card will operate similarly to the Green Card, including in terms of its acquisition and use, RAMI told Interfax.
Commenting on the prospects for concluding agreements with new states, RAMI said, "At the current stage, a separate agreement is being concluded with each individual bureau. Meanwhile, it might be possible to create a full-fledged independent insurance system in the future on their basis."
Blue Card tariffs will be the same as for Green Cards. The cards will definitely be cheaper than foreign border insurance policies," RAMI said.
On June 19, the Central Bank published a draft instruction according to which vehicles from 'unfriendly' countries, with the exception of private cars, will be subject to a territory coefficient increase from 1.7 to 12.5. A new approach to determining the values of the territory coefficient was adopted by the regulator based on the results of relevant calculations, including in connection with the refusal of these states to accept Russian Green Card certificates starting June 1, 2023.
"This change equalizes the financial conditions for entry into the country for trucks from unfriendly countries entering Russia and Russian vehicles entering unfriendly countries. These conditions will change significantly on July 1, after which Russia is excluded from the Green Card," RAMI said.