Implications of the Conflict in Ukraine on Compulsory Motor Insurance

Since the outbreak of the military conflict in Ukraine, several Andorran insurers have contacted the Andorran Bureau regarding the advisability of issuing International Motor Insurance Certificates (IMIC) or Green Cards that extend compulsory third-party liability coverage to Ukraine, Russia or Belarus.

Although these countries are part of the 'International Insurance System' (Green Card System), they are not parties to the Multilateral Guarantee Agreement. The decision to extend liability coverage to these countries is entirely up to each insurer based on their own criteria and at their own risk. It should be noted that both Russia and Belarus were suspended from the International Insurance System as of 30 June 2023.

Given the current circumstances, it is risky to issue an International Motor Insurance Certificate (IMIC) or Green Card for an Andorran vehicle extending liability coverage to Ukraine. However, unless there is an express international prohibition, each insurer is free to decide whether to issue the IMIC or Green Card and if so, which of these countries' liability coverage should be extended to.

Andorran Vehicle in Ukraine: IMIC or Frontier Insurance?

If an Andorran vehicle does not have a valid Andorran IMIC to enter Ukraine or any of the mentioned countries, you can obtain Frontier Insurance issued by the country you are entering. The Ukrainian Bureau has confirmed that it is possible to purchase Frontier Insurance to enter their territory depending on how events unfold.

In addition to third-party liability coverage, the Andorran Bureau would like to remind all drivers travelling with their vehicles to Ukraine (or any other country) to carefully review the effectiveness of all voluntary coverage abroad, especially policies such as travel assistance and repatriation costs as there may be limitations or express exclusions for conflict zones.

The Council of Bureaux (COB) is in contact with the Ukrainian Bureau to clarify any questions or concerns regarding the interpretation of Ukrainian national law on the conditions under which an insurer is authorised to reject a third-party claim for damages caused by road accidents in a military conflict environment. In this regard, the Andorran Bureau is at your disposal.

This is a serious matter with many open questions. The Andorran Bureau is closely monitoring developments and will keep you informed of all relevant updates.

Our hearts are with our colleagues of the Ukrainian National Insurance Bureau who continue to work despite the immense difficulties of the situation.

For any urgent matters regarding this issue, feel free to contact the Andorran Bureau.