By Azernews

By Ayya Lmahamad

Azerbaijan's Compulsory Insurance Bureau and Turkey's Motor Insurers' Bureau have signed a protocol on the integration of "Green Card" civil liability insurance systems of vehicle owners.

Compulsory Insurance Bureau Executive Director Rashad Ahmadov and Motor Insurance Bureau Director Mehmet Akif Eroglu signed the document in Baku on March 14.

The protocol aims to simplify and speed up border crossing procedures between Azerbaijan and Turkey and to help prevent the use of false documents.

Moreover, following the integration, the procedure of sale and purchase of "green card" insurance policies will be simplified.

Border crossing procedure simplification

Speaking at the meeting, Rashad Ahmadov stated that the integration of civil liability insurance systems "Green Card" between Azerbaijan and Turkey will simplify and speed up border crossing procedures.

He noted that Azerbaijan has been using this system since 2016.

"Its advantage is the driver's civil liability insurance abroad. It is possible to register trucks, cars, buses and motorcycles under the green card system. The dynamics of insurance cases in the countries-participants of this project is multidirectional," he said.

Ahmadov added that once the systems are integrated, the procedure for selling and purchasing green card policies will be simplified.

Trade relations expansion

Turkish Insurance Association Chairman Atilla Benli noted that the integration of systems of civil liability insurance of vehicle owners "Green Card" between Azerbaijan and Turkey will help expand trade relations between the two countries.

He mentioned that the main purpose of systems integration is to strengthen cooperation and develop insurance systems.

"The protocol signed today will contribute to commercial transportation between Azerbaijan and Turkey," he said.

Turkish model of insurance

Moreover, Central Bank Director-General Ziya Aliyev stated that Azerbaijan plans to integrate the Turkish model of insurance.

He noted that the insurance sector has been developing for 15 years in Azerbaijan and now accounts for about one percent of GDP.

"This sector has great potential for further development. In addition, we have a number of joint projects with Turkey, which we plan to develop. The Turkish insurance sector has a 150-year history, and for Azerbaijan, it is a great experience which can be applied," he said.

Concerning the integration of the Turkish insurance model in Azerbaijan, he stated that it is planned to expand the development of market infrastructure and the compulsory insurance sector to that end.

Aliyev went on to say that the Central Bank has created a corresponding program for the development of this sector, focusing on mandatory insurance, public and business information, digitalization, infrastructure, and support tools.

"The insurance sector is also included in the new development program of the Central Bank of Azerbaijan, including in the area of financing," he said.