NATURE OF THE GREENCARD BUREAUS

The Green Card system is fundamentally supported by the Bureaus and their member insurance companies, which are authorized to provide third-party liability insurance.

Bureaus issue Green Card insurance certificates to their insured through their members and provide guarantees to compensate the injured parties through settlement (claim resolution and compensation) Bureaus, within the legal insurance limits and rules of the country where the accident occurred. For Bureaus to compensate and make payments, the essential condition is the existence of a valid Green Card insurance certificate issued by a member country of the Green Card System at the time of the incident.

Having a Green Card provides convenience to motor vehicle users in any country where an accident occurs because their insurance coverage and insurer can be easily identified, ensuring that compensation to the injured party can be made without delay.

Payment Bureau: This bureau function is fully responsible for traffic accidents caused by the holders of Green Card Certificates issued by the member insurance companies. This responsibility continues to provide insurance guarantees under the law of the country where the accident occurred, even if the member insurance company is undergoing liquidation.

Settlement (Claim Resolution and Compensation) Bureau: This term refers to the function of the Bureau in the country where the accident occurred. The obligation of this Bureau is to resolve and compensate for damages caused by a policyholder from another member Bureau of the system after an accident occurs in its country. In this situation, the settlement Bureau handles the claim as if it had issued the insurance policy itself. Therefore, this function of the settlement Bureau overlaps with its responsibility to provide third-party liability insurance guarantees to the injured parties in its country.

The settlement Bureau, given the existence of a valid Green Card at the time of the accident, obtains accident-related statements, handles court summons and lawsuits, conducts investigations, and pays compensation. Additionally, the settlement Bureau is obliged to protect the interests of the foreign insurer that issued the Green Card as if it had issued the insurance policy itself.