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MILESTONES IN THE LIFE OF COB: 2002 - Enhancing Green Card Bureaux operations with Internal Regulations
MILESTONES IN THE LIFE OF COB: 2002 - Enhancing Green Card Bureaux operations with Internal Regulations

 

As part of our celebrations to mark the 75th Anniversary of COB, we wanted to reflect on the rich and meaningful history that has made the organisation what it is today.

Over the course of the year this series of articles will focus on key ‘milestones’ from the life of COB, telling the story behind these moments and why these events mattered.

We hope the series will help provide a better understanding of COB, our mission and what has driven our activity over the last 75 years. 

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After focusing on the 'second pillar' of the COB system (the ‘Protection of Visitors system’) in our previous article, we will now return to our first and foundational pillar, the Green Card system. In this article, we will explore how the Internal Regulations were established, the reason behind them, and their major significance.  

 

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From the Uniform Agreement to the Multilateral Guarantee Agreement

Since its establishment1, the Green Card system operated under a model agreement between Green Card Bureaux, known as the Uniform Agreement. This approach proved to be a practical solution, well-suited to insurers and supporting a system centred on the Green Card, which required validation at border crossings.

The adoption of the first Motor Insurance Directive (MID) in 1972 brought significant changes. To eliminate border checks, Supplementary Agreements were signed between the Green Card Bureaux of the six EEC Member States, as well as with third countries, all based on the concept of 'normally based’2. These agreements supplemented the previous bilateral Uniform Agreements.

With the accession of new Member States, additional Supplementary Agreements were required. These were eventually consolidated into a single document, the Multilateral Guarantee Agreement, signed in Madrid in 1991.  

However, the coexistence of two distinct types of agreements—bilateral and multilateral—regulating relations between Bureaux proved unsatisfactory. These agreements applied to two different operational models of the Green Card system: one based on the physical presence of the Green Card, and the other on the presumption of insurance. This led to inconsistent rules and varying interpretations.

After 50 years of changes and adaptations within the Green Card system, it became clear that a comprehensive revision of these agreements was necessary. As a result, there were growing calls for COB to propose a more cohesive and effective solution.

 

[1] See article : 1953 – Green Light for the ‘Green Card’ system

[2] See article 1972 - Introduction of the first Motor Insurance Directive

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A dedicated Working Group

In 1999, during the General Assembly in Oxford, the decision was made to revise the agreements by developing a unified document that would consolidate the Uniform Agreement, the Multilateral Guarantee Agreement, and other Supplementary Agreements.

This ambitious project was planned to unfold in multiple stages and took several years to complete.  

First, Alain Pire, Director of the Belgian Bureau, and Peter Morgan, Secretary General of COB, were tasked with preparing a draft of the ‘Unified Agreement’ to be discussed in a dedicated Working Group.  The group consisted of Michael Halligan from the Irish Bureau, Jakub Hradec from the Czech Bureau, Silvio Lovetti from the Italian Bureau, Martin Metzler from the Swiss Bureau, along with Alain Pire who acted as a Chair and Peter Morgan. When Peter Morgan retired in 2000, he was succeeded by Michael Nicholson. Later, Zhor Berrada from the Moroccan Bureau also joined the Working Group, adding in that way experience of a Bureau operating solely under the Green Card system.

The Working Group presented the gradual development of their work to the General Assemblies of 2000 and 2001. In February 2002, an Extraordinary General Assembly was even dedicated to discussing the content of what was called - in the meantime - the ‘Internal Regulations’. 

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The Internal Regulations

The 2002 General Assembly in Rethymno marked a significant milestone in COB’s history, with the Internal Regulations (IR) being unanimously adopted. The new agreement was set to take effect on 1st July 2003.  

With the adoption of the IR, the previous agreements were consolidated into one single document. The IR are presented as a set of rules that Bureaux must adhere to. They serve as 'General Terms and Conditions' governing the implementation of bilateral agreements between Bureaux.  

Only Green Card Bureaux are governed by the Regulations (which also bind agents acting on their behalf). National Bureaux are responsible for implementing the rules of the IR in their national markets, guaranteeing in that way that insurers and correspondents also abide by the principles of the Green Card system.

A dedicated chapter (‘General Rules’) contains common provisions related to claims handling (by Bureaux, agents and correspondents) as well as reimbursement demands and obligations of guarantee.  

The rules that differ—whether concerning the Green Card as a document or the ‘normally based’ principle—are organised into two separate sections (‘Specific Rules’).  

Photo of the 2002 General Assembly in Rethymno @ COB Archives

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Structre of the Internal Regulations

 

To provide the necessary interpretation and background context, COB supplemented the IR with an Explanatory Memorandum (EM) in 2003. The EM serves as a guide for reading and applying the Regulations in claims handling processes.

The amendment procedure for the IR starts with discussions in the Internal Regulations Committee, the Regional Groups and the Supervisory Board. The final decision on amending the IR is in the hands of the General Assembly of COB. The most recent revision was made available at the 2024 General Assembly in London.

In September 2023, a new Working Group was established to review the IR and the EM. This group aims to improve the format and legal coherence of both documents over a three-year mission.

 

With the adoption of the Internal Regulations in 2002, COB established a crucial framework that significantly enhanced the operations of the Green Card Bureaux. Most importantly, it simplified claims handling processes and strengthened the protection of victims of cross-border road traffic accidents, fully aligning with COB's core mission. This effort is ongoing.
 

COB would like to express their gratitude to Alain Pire, former Secretary General, for his valuable input on this article. On the occasion of COB's 75th anniversary, he generously shared his memories as Chair of the Working Group that worked on the Unified Agreement and allowed us to incorporate them into this article. Alain Pire passed away in August 2024. COB is grateful for all the work he did to protect cross-border road traffic victims.