ASEAN inks cross-border vehicle insurance pact

Asian Economic News, April 16, 2001

KUALA LUMPUR, April 9 Kyodo

The Association of Southeast Asia Nations (ASEAN) inked a deal Sunday making it compulsory for vehicles carrying goods across each other's borders to be insured against third-party claims in the event of an accident.

The agreement, known as the ''ASEAN Scheme of Compulsory Motor Vehicle Insurance'' was signed by the 10 ASEAN finance ministers in the Malaysian capital for an annual two-day meeting that ended Sunday.

According to the agreement, vehicles and their operators from one ASEAN country must be ''adequately insured against death and bodily injury and/or property damage arising from road traffic accidents'' occurring in another ASEAN country.

All such vehicles must carry a blue card issued by the ''national bureau'' of the country of origin as proof of the insurance.

The motor vehicle insurance must come from licensed insurance companies that are members of the national bureau.

This compulsory motor vehicle insurance scheme is part of the ''Agreement on the Facilitation of Goods in Transit'' adopted by the leaders during the ASEAN summit in Hanoi in 1998.

The Hanoi agreement aims to facilitate movement of goods in transit among ASEAN countries by simplifying all transport procedures and requirements and minimizing unnecessary delays or restrictions.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.