Russian Prime Minister Viktor Zubkov has opened the way for Russian insurers to issue international car insurance.
Photo: Mikhail Razuvaev
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Russia Joins Intl. Car Insurance System
Russia may enter the International Motor Insurance Certificate (“green card”) system at the beginning of next year. Russian Prime Minister Viktor Zubkov signed an order on March 19 naming the Russian Union of Auto Insurers the national insurance bureau for the for the international system and instructed the Finance Minister Alexey Kudrin to send the appropriate application to the UN Economic Commission for Europe and the international green card bureau. The recognition of OSAGO, Russian mandatory driver's insurance, on the international market will cost insurers ˆ500,000 apiece. Twenty-three companies plan to pay the price.
The green card system was established in 1951 with the goal of regulating losses in traffic accidents involving foreign drivers. All European countries, Israel, Morocco, Tunisia and Iran (a total of 44 countries) are participants in the green card agreement. Russian drivers now buy green cards from Russian insurers acting as agents. When Russia enters the system, the green card will be valid in this country and Russian insurers will be able to issue their own cards.
The Russian Union of Auto Insurers will set the rules and fees for the card in Russia. In the green card countries, a 15-day card costs ˆ 30 for a car. Trucks receive yearlong cards for ˆ600-800. Russia is expected to follow a similar pricing policy. Russian insurers expect membership in the system to generate ˆ20-50 million per year in premiums. Profitability is expected to be 5-15 percent, comparatively low, since liability for Russian drivers abroad are higher than the 400,000 rubles set by OSAGO.
www.kommersant.com
All the Article in Russian as of Mar. 24, 2008
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