- Many of our tourists dreaming of traveling abroad by car have heard of the so-called “green card”. Tell us about this type of insurance.
- The “green card” is a unified International System of civil liability insurance for owners (drivers) of vehicles traveling abroad, adopted by European countries in 1949. Initially, the policy was green, which is why it was nicknamed the “green card”. Our country, represented by the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), became a member of the International Motor Insurance System in June 1998. At that time, the first domestic “green cards” appeared.
- What does the “green card” protect a motor tourist from?
- The presence of a “green card” will save its owner, who is at fault in a traffic accident on the territory of a foreign state, from problems with compensation for damage caused to third parties. This includes damage or destruction of property of legal entities and individuals injured in the accident; damage to road surfaces, road structures and other objects. And finally, the onset of temporary or permanent disability (invalidity), as well as the death of the victim.
Countries that belong to the International Motor Insurance System have national bureaus that represent the interests of foreigners involved in traffic accidents. Therefore, all losses caused to third parties are compensated by these organizations or by insurance companies that have been granted such a right. Simply put, if our driver is found to be at fault for an accident abroad, all damage they caused will be compensated not at their expense, but at the expense of the insurance company whose “green card” they purchased.
- And where can one do this?
- Owners of vehicles registered in Ukraine can purchase a “green card” insurance certificate only on the territory of Ukraine, and only 13 insurance companies currently have the right to sell it.
- Is a “green card” mandatory for traveling abroad by car?
- According to the Law of Ukraine “On Insurance”, this is an indispensable condition. Thousands of Ukrainian motorists cross the western borders of our country every day. They know well that it is forbidden to drive on European roads without a “green card”. In many European states, such a violation is punished very severely. In Poland, for example, the fine for not having an insurance policy is about $1.000.
- Is it possible to purchase a “green card” while already in another country, say, in Poland?
- If the validity period of the Ukrainian policy has expired, and its owner needs to stay on the territory of a foreign state for objective reasons, he will be obliged to purchase a “green card” of the country of stay, the cost of which differs significantly from ours. In accordance with Article 7 of the Law of Ukraine “On Insurance”, the base amounts of insurance payments (tariffs) for this type of compulsory insurance are set by the Cabinet of Ministers of Ukraine. They are uniform for all insurance companies that are members of MTIBU. However, due to changes in the exchange rate, MTIBU makes an appropriate recalculation. That is why our citizens at different times purchase equivalent “green cards” at different prices.
The amount of the insurance payment depends on the term of the contract (minimum - 15 days, maximum - one year), the type of vehicle (passenger car, truck, bus, motorcycle, trailer) and the country to which the “green card” applies (Eastern Europe or all of Europe).
Let me explain with an example. Suppose you are going to Germany by car for 15 days. The cost of a “green card” (a “long” one) for such a trip will be 261 hryvnias. But if you are going for the same 15 days, for example, to the Czech Republic, the cost of a “green card” (a “short” one) will be only 130 hryvnias. The fact is that “green cards” valid for Bulgaria, Hungary, Poland, Romania, Slovakia, the Czech Republic, Estonia, Latvia, Lithuania, Moldova, and Belarus are about 50% cheaper than cards valid for Austria, Belgium, Germany, Denmark, Spain, Great Britain, Italy, Ireland, etc.
I would like to draw attention to the fact that from May 1, 2004, countries such as the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, and Slovakia will join the EU. From that moment on, they will move to the tariff grid of the “long” “green card”, and therefore the cost of the policy will increase. At first glance, the price of a “green card” is impressive, but the amounts of material damage that may arise from a traffic accident abroad sometimes reach several million euros.
- And what about those who drive a car by power of attorney?
- They should obtain a temporary certificate for this vehicle from the State Automobile Inspection, and then purchase a “green card” in their own name. If the policy was purchased earlier by the car owner and its validity has not expired, then the driver driving this car by power of attorney does not need to purchase a new “green card”.
- What should a “green card” holder do in the event of an accident?
- First of all, it is necessary to call the police. I would like to draw attention to the fact that the original "green card" should never be given to anyone. It is enough to provide a photocopy of the first page or the second page of the policy, or to enter the number and validity period of the card into the police report. In addition, it is necessary to record the details of the other participant in the accident, the number and validity period of his insurance document. Demand a copy of the accident report, and in a language you understand. If the report is drawn up in an unfamiliar language, then when signing it you need to make a note "I do not understand the language." If possible, contact the nearest branch of the insurance company where the "green card" was purchased and inform about the fact and circumstances of the accident. If there are no human casualties in the accident, the role of the traffic police is limited to drawing up a protocol or other document.
- What consequences will an accident have for the owner of a "green card"?
- After the culprit of the accident signs the protocol or the corresponding document, further actions to compensate for damage to the injured party are taken over by insurance companies. The victim will receive compensation without tedious court proceedings and attempts to get money from the perpetrator of the accident. And the latter, in turn, knows that regardless of his financial situation, the damage to the victim will be compensated. It should be taken into account that damage caused to the owner of a Ukrainian "green card" is not compensated (under this type of insurance).
- What else would you advise those who are going to purchase this policy to pay attention to?
- I will note once again that the cost of "green cards" is set by the Cabinet of Ministers of Ukraine and is the same for all insurance companies that have the right to carry out this type of insurance. Therefore, it is better not to buy "green cards" from people who offer it at half price or promise to give a discount. This is a sure sign that a fake is being offered. It is safer to purchase a policy from insurance companies and their representative offices, which are located both in the central regions of Ukraine and at border crossing points. And I would also like to wish all motorists to drive in such a way that they never have to use their insurance policy!
Background "Zagranitsy"
CASCO, OSAGO, "Green Card" – what is the difference between these types of vehicle insurance?
CASCO protects your own car from various damages, while OSAGO and the "Green Card" protect all those to whom you may cause harm while driving a car. In this case, they will be paid compensation provided for by local laws. At the same time, OSAGO and the "Green Card" also protect the driver himself, because he will not have to pay for the damage he may cause to others on his own.
OSAGO operates in Russia, while the "Green Card" operates abroad, in all member countries of the international insurance system "Green Card".
If you have a CASCO policy, then before traveling abroad, make sure that your policy is valid outside Russia (by default – only Russia). You may need to purchase a special extension of the insurance territory.