AFAFGIT Protocol 5 - ASEAN Scheme of Compulsory Motor Vehicle Insurance

Protocol 5 – ASEAN Scheme of Compulsory Motor Vehicle Insurance

Protocol 5, requires the implementation of a 3^rd Party Liability Insurance Scheme among the ASEAN countries which will provide coverage for death or bodily injuries and/ or property damages arising out of a road transit transport vehicle.  The insurance policy issued should be able to provide coverage as above in all countries that the vehicle will journey from departure country through all the transit countries and until point of destination including the return journey. 

The Protocol outlines the organisational set up and the responsibilities of the entity which has been entrusted to coordinate the implementation of the cross-border third party insurance requirement after taking into consideration of the national laws and requirements of providing insurance for permitted transit vehicles.  The provision of the required insurance for transit vehicles from one point by the COB is an additional facility for the users of the ACTS to expedite the transit movement without the need to purchase the required insurance at the border crossing of each country involved in teh transit.  This would also enhance the validation of insurance certificates at the border by enforcement authorities.