As of in January 2002, Lebanese insurance firms can join the Orange Card program, a unified automobile insurance scheme covering vehicles traveling across the Arab world. The Orange Card agreement is sponsored by the General Arab Insurance Federation in a bid to promote regional transport.
The Orange Card is a Third Party Liability (TPL) insurance policy which guarantees bodily and/or material coverage for any Arab-owned vehicle commuting through the 13 signatory countries, without having to issue extra insurance, reported the Daily Star.
The cards are issued for vehicles in their respective countries of origin and the program is applied in compliance with the prevailing laws of the country where an accident has taken place. It is equivalent to the European Green Card.
Lebanon’s application to join the regional scheme was rejected several times in the past due to the fact that mandatory car insurance is not applied in the country. According to unofficial figures, less than 25 percent of the 1.3 millions registered vehicles plying Lebanese roads are currently insured. The Lebanese government is, however, expected to implement mandatory car insurance in the next few months.
Lebanese drivers joining the program would be liable for indemnity for accidents taking place in participating Arab countries. However, local drivers would not receive compensation should an accident occur within Lebanon with an uninsured Arab vehicle, explained Joseph Zakhour, former head of the Lebanese Insurance Association Union. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
