REGULATION
ADMINISTRATION OF THE GUARANTEE FUND AND RULES ON HANDLING GREEN CARD CLAIMS

Article 1
OBJECT

This Regulation aims to define rules on administration of the Guarantee Fund of the Green Card, in order to guarantee the fulfillment of financial obligations arising from the membership in the Green Card System and the basic criteria of the equipment of members with the International Insurance Certificate, in the moment of application and onwards.

Article 2
LEGAL BASIS


This Regulation is approved in compliance with Articles 42, 44 and 46 of Law Nr.10 076, dated 12.02.2009 “Compulsory Insurance in the Transport Sector”

Article 3
EQUIPMENT OF MEMBERS WITH INTERNATIONAL INSURANCE CERTIFICATE


1. The General Assembly of Members of the Albanian Insurance Bureau is the only Authority which equips its Members with a International Insurance Certificate (Green Card), after the fulfillment by their part, of the legal and by legal provisions in force and the criteria approved by the General Assembly of Members, in compliance with the rules of the Green Card System.
2. The demand of the Insurance Company(Member of the Albanian Insurance Bureau) must be submitted to the General Assembly of Members of the Albanian Insurance Bureau, together with an adequate reinsurance program and bank guarantee in the meaning of a frozen deposit in a second level bank, as a guarantee for the Green Card in favor of the Albanian Insurance Bureau, and with the note that it can be used only with the approval of the General Assembly of Members of the Bureau, in compliance with Point 2, Article 44 of Law Nr. 10 076,dated 12.02.2009 “Compulsory Insurance in the Transport Sector”
3. The General Assembly of Members, in the next meeting approves or not the granting of the official authorization to the demander for the sale of the green card. The Bureau informs the Albanian Financial Supervisory Authority within 3 work days, about the decision of the General Assembly of Members for the Granting of Authorization or not.

Article 4
CRITERIA OF SELECTING THE REINSURANCE COMPANY


The Insurance Company must guarantee the selection of reinsurance companies with which makes agreements in compliance with the Regulation “Criteria of Reinsurance” approved with the Decision of the Board of the Albanian Financial Supervisory Authority Nr. 2, dated 18.06.2007.

Article 5
GUARANTEE FUND OF GREEN CARD


1. The Guarantee Fund of the Green Card is created from the contribution of every member of the Bureau, amount of which, deadlines for its deposit to the bank, the procedure of renovation, and the deadlines of resettlement, are approved every year by the Albanian Financial Supervisory Authority, with the proposal of the General Assembly of Members. The General Assembly of Members approves the proposal within day 15 of December of every calendar year.
2.  The Guarantee Fund of the Green Card shall be used according to the predictions of Article 44, point 4 of Law Nr. 10 076, dated 12.02.2009 “Compulsory Insurance in the Transport Sector”. The Bureau, after has been notified for a “Guarantee Call”, because of non fulfillment of obligations according to the predictions of the Internal Regulations of the Council of Bureaus, notifies the member for this Guarantee Call. In case the member does not execute his obligation within 30 calendar days, the Executive Director of the Bureau authorizes the payment of the Guarantee Call from the Guarantee Fund and informs the Member to fill in the taken amount, to fill the created obligation in the Guarantee Fund.

Article 6
HANDLING OF CLAIMS IN ALBANIAN TERRITORY CAUSED BY VEHICLES WITH FOREIGN REGISTRATION PLATES


1.Damage claims occurred in the territory of the Republic of Albania, caused by vehicles with foreign registration plates, shall be handled according to the below:

  • The vehicle with foreign registration plates, liable for the accident, results to be insured by a Company which has an approved correspondent in Albania:
  • The vehicle with foreign registration plates, liable for the accident, results to be insured by a Company which does not have an approved correspondent in Albania:
  • The vehicle with foreign registration plates, liable for the accident, results to be insured with a valid green card, which might have been altered or changed, and circulates uninsured;

2. In case the liable vehicle is insured by a foreign company which has an approved correspondent for handling and settlement of claims happening in Albanian territory, the Albanian Insurance Bureau, in case the damage claim is submitted to her, delegates the claim to the correspondent for handling and settlement.
The correspondent shall be:

  • An insurance company, member of the Albanian Insurance Bureau, or
  • A legal person which has a fronting agreement with an insurance company - member of the  Bureau, in order to handle and settle claims on its behalf, or
  • A legal person which does not have a fronting agreement as above, but has been previously  approved by the General Assembly of Members to handle and settle claims according to the defined criteria.

The correspondent is obliged to inform the Albanian Insurance Bureau periodically every month, for the date of payment of the damage to the damaged third party and the corresponding amount paid.
3. In case the liable vehicle is insured by an insurance company which does not have an approved correspondent for handling and settlement of claims in the territory of the Republic of Albania, the damage report is done directly to the Bureau which authorizes for the handling and settlement of the damage one of the insurance companies, member of the Bureau, according to a rotational system and by taking into consideration that the third party shall not be insured by this company.
In the cases that the file has been opened directly by a member insurance company, this late shall inform the Bureau and complete the file with the necessary documentation with the authorization of the Bureau, or in case the third party is insured by this company, it delegates the claim to the company authorized by the Albanian Insurance Bureau.
4.  In case the vehicle with foreign registration plates does not result insured with a valid green card, which might have been changed or altered or the vehicle circulates uninsured in the territory of the Republic of Albania, the Albanian Insurance Bureau makes the correspondence with the respective Bureau for the settlement of the claim and at the same time authorizes one of the member insurance companies to handle and evaluate the damage. In this case, when the correspondence with the foreign Bureau comes to an end, the status of payment in favor of the damaged third party shall be defined.
5. All demands for indemnification shall be handled by correspondents or members of the Bureau, in compliance with the legal provisions and regulations applicable in Albania, and in the best interest of the insurer issuing the green card of the liable vehicle.
6. The approval of the evaluations of the damage of claims, object of the green card fund, is done by the Damages Commission of the Albanian Insurance Bureau.


Article 7
REPORTS AND INFORMATION


1. The insurance companies report to the Albanian Insurance Bureau every 3 months, for the paid and outstanding claims of the green card fund.
2. The Albanian Insurance Bureau, every 3 months, informs the Administrative Council, in relation with the non fulfillment of obligations of the insurance companies, for claims happening abroad, and for the received “Guarantee Calls”.
3. The Albanian Insurance Bureau communicates with other Bureaus and/or intervenes to the Council of Bureaus for every concern made present by the Member Insurance Companies, in relation with the procedures of handling and settlement of claims by Foreign Handling Bureaus.

The provisions of this Regulation enter in force on____________