The Green Card Agreement (Uniform Agreement between Bureaux)
The Green Card Agreement is based on two principles:
The Green Card Bureau of the country where the accident occurred (Handling Bureau) has an exclusive competence to settle the loss in conformity with the law of the country of accident.
The Handling Bureau is obliged to act in the best interest of the insurer of the foreign motor vehicle causing the loss (Paying Bureau).
These principles are duly reflected in the wording of the Green Card Agreement. It is providing details, definitions of the Green Card System, as well as the rules of its operation, handling of claims and the conditions of reimbursement.
The Green Card defined by the Green Card Agreement is a proof of the compulsory insurance cover required in the visited country. Showing the card, the user of the motor vehicle would evidence the motor insurance cover. The Green Cards are printed by each Member State with a wording and in a format approved by the Economic Commission for Europe of the United Nations. The title of the card is printed in the language of the issuing country as well as in English and French. In addition to the official language of the country the issuing National Bureau is indicated in another official language. In its capacity as a Handling Bureau, the Green Card Bureau of the visited country or the insurance company appointed by this bureau shall settle the claim on behalf and to the account of the insurance company who issued the Green Card as the proof of an existing and valid liability insurance contract.
The basic wording of the agreement has remained the same over the years, though some of the articles have been refined with the practical experience gained over the years.