PROTOCOL 5

ASEAN SCHEME OF
COMPULSORY MOTOR VEHICLE INSURANCE

The Governments of Brunei Darussalam, the Kingdom of Cambodia, the

Republic of Indonesia, Lao People's Democratic Republic, Malaysia, Union of
Myanmar, the Republic of the Philippines, the Republic of Singapore, the
Kingdom of Thailand and the Socialist Republic of Viet Nam, Member States of
the Association of Southeast Asian Nations (hereinafter referred to as
"Contracting Parties");

RECALLING the ASEAN Framework Agreement on the Facilitation of

Goods in Transit signed on 16 December 1998 in Ha Noi, Viet Nam, (hereinafter
referred to as "the Agreement");

RECOGNISING that Articles 14 and 25 thereof provide for the

conclusion of implementing Protocols which shall form integral parts of the
Agreement;

RECALLING further the Hanoi Plan of Action which was adopted by the
Heads of State and Government of ASEAN at the Sixth ASEAN Summit in Ha
Noi, Viet Nam on 16 December 1998 stipulates to operationalise the Agreement
by the year 2000;

CONSCIOUS of the need to compensate victims of road traffic accidents

caused by Transit Transport Operators and Road Transit Transport Vehicles for
damage they may have sustained as a result of such accidents;

NOW, WHEREFORE, THE CONTRACTING PARTIES HAVE

AGREED AS FOLLOWS:
 Article 1
Definitions

For the purpose of this Protocol, the following expressions shall have the
meaning herein assigned to them:

a. National Bureau means the duly designated agency or

instrumentality in each of the Contracting Parties to perform
functions necessary for the operation of the ASEAN Scheme of
Compulsory Motor Vehicle Insurance as established under this
Protocol;

b. Insurer means the insurance company which is a member of any

one of the National Bureaux;

c. Council of Bureaux means the body composed of representatives

of all National Bureaux as established under Article 11 of this
Protocol;

d. Blue Card means the identification card, evidencing the existence

of a compulsory motor vehicle insurance policy, issued by the
National Bureaux of the Contracting Parties, in accordance with the
provisions of this Protocol;

e. Road Transit Transport Vehicle means the type of road vehicles

for the use of carrying goods across the territory of one or more
Contracting Parties, when the passage across such territory or
territories, with or without transhipment, warehousing, breaking
bulk or change in the mode of transport, is only a portion of a
complete journey beginning and terminating beyond the frontier of
one or more Contracting Parties across the territory the vehicle
passes and as described either on a Certificate of Insurance or on
the Blue Card;

f. Insurance Policy means the contractual document issued by an

Insurer to an insured to cover death or bodily injuries and/ or
property damages arising out of the use of a road transit transport
vehicle;

g. Policy Holder means a legal or natural person who takes out a

compulsory motor vehicle insurance policy or one who holds a
valid Blue Card;

h. Road Traffic Accident means a happening or occurrence related to

a road transit transport vehicle causing death or bodily injuries
and/or property damage;
 i. Transit Transport Operators means owners, drivers and/or agents
of road transit transport vehicles who (1) have the appropriate
national permit or licence to operate transport services and who
have a proven compliance record to the rules and procedures under
the said permit or licence, and (2) are duly registered as transit
transport operators by the respective National Transit Transport
Coordinating Committee (NTTCC);

Article 2
Application

Pursuant to Article 3 and paragraphs 2 and 3 of Article 14 of the Agreement, the

Contracting Parties hereby agree to apply the provisions of this Protocol to the
establishment of an ASEAN Scheme of Compulsory Motor Vehicle Insurance to
enable Transit Transport Operators and Road Transit Transport Vehicles from
each of the Contracting Parties to be adequately insured against death or bodily
injuries and/ or property damages arising from road traffic accidents in the
territories of the other Contracting Parties.

Article 3
Compulsory Motor Vehicle Insurance Coverage

The ASEAN Scheme of Compulsory Motor Vehicle Insurance as established by

this Protocol shall provide, at least, the minimum requirements prescribed by the
laws and regulations governing compulsory motor vehicle insurance in force in
the country or countries of transit and of final destination.

Article 4
Obligations of the Contracting Parties

In addition to the responsibilities assumed under other provisions of this Protocol,

the Contracting Parties shall endeavour to take all necessary measures for the
implementation of this Protocol and, in particular:

a. Undertake to require the insurance company or companies

established in their territories providing compulsory motor vehicle
insurance to adopt the Blue Card scheme as described in this
Protocol;

b. Undertake to enact necessary domestic laws and regulations that

may be required for the implementation of this Protocol;
 c. Undertake to ensure that its National Bureau has sufficient funds to
fulfil its obligations under Article 10 of this Protocol.

Article 5
Obligation to have a Blue Card

Road Transit Transport Vehicles shall have a valid Blue Card which shall be
presented upon request.

Article 6
Issuance of the Blue Card

The Blue Card shall be issued by the National Bureau of each of the Contracting
Parties, in accordance with Article 10 of this Protocol.

Article 7
Coverage and Validity of Blue Card

1. During the period of its validity, the Blue Card shall be proof of existence
of an insurance policy for the compulsory motor vehicle insurance
described in Article 3 of this Protocol.

2. The Blue Card shall be valid for a specific period of time not to exceed
one calendar year, irrespective of the number of transit transport journeys
to be made.

3. The Blue Card shall be valid for one specific Road Transit Transport
Vehicle and shall in no case be transferable.

Article 8
Content and Form of the Blue Card

The Blue Card shall, inter alia, include the following particulars:
a. Name and address of the issuing National Bureau;
b. Country(ies) in which the Insurance Policy is effective;
c. Name(s) and address(es) of the Insurer(s);
d. Identification of the road transit transport vehicle;
e. Name and address of the Policy Holder;
f. Date of issue and date of expiry of the card;
g, Name(s) and address(es) of the National Bureau in each
Contracting Party;
h. Number(s) of the insurance policy(ies);
 i. Serial number of the card; and
j. Signature and stamp of the issuing National Bureau.

2. The form, in terms of size and shape, of the Blue Card shall be decided
upon by the Council of Bureaux. It shall be printed in the English
language.

Article 9
Establishment of National Bureau

1. The Contracting Parties shall establish National Bureaux whose function is

prescribed in Article 10 of this Protocol.

2. The National Bureau shall be composed of licensed insurer(s) providing

compulsory motor vehicle insurance.

Article 10
Functions of the National Bureau

The National Bureau shall undertake to fulfil the following functions:

a) Issue the Blue Card to its own country's Transit Transport Operators after
having verified that the Transit Transport Operator has in place a motor
insurance policy which meets the country's compulsory motor insurance
requirements;

b) Sell the country's motor policies which provides the minimum compulsory
insurance to other country's Transit Transport Operators entering the
country;

c) Stamp on the Blue Card after verifying that the other country's Transit
Transport Operator has purchased the requisite motor insurance policy
which meets with its country's compulsory motor requirements.

d) Verify, whenever informed of a road accident caused in its territory by the

holder of the Blue Card, the circumstances of the accident and on the
basis, of its findings, take any action it deems necessary. It shall, in any
event, advise the insurer concerned of any claims that it is handling on the
latter's behalf;

e) Obtain prior authorisation from the insurer concerned before settling any
claims;

f) Seek reimbursement from the insurer concerned on the amount of claims

settled.
 Article 11
Establishment of a Council of Bureaux

A Council of Bureaux shall be established to coordinate and supervise the legal,

technical, administrative and financial operations of the National Bureaux of all
the Contracting Parties.

Article 12
Composition and Meetings of the Council of Bureaux

1. The Council of Bureaux shall consist of one representative from each

National Bureau and a representative of the Transit Transport Coordinating
Board established pursuant to Article 29.2 of the Agreement.

2. The Council of Bureaux shall elect its Chairman and its Vice-Chairman from
among its members for a fixed term and according to the rotation principle.

3. The Council of Bureaux shall meet once a year. Additional meetings may be
held at the request of any one of the National Bureaux.

Article 13
Functions of the Council of Bureaux

The Council of Bureaux shall have the following functions :

a. Determine and adopt the form and content of the Blue Card;

b. Establish its annual budget and fix the annual contributions to be paid by each
National Bureau;

c. Coordinate the operations of all the National Bureaux. To this end, the
Council shall prepare an Inter-Bureaux Agreement which shall be signed by
all the National Bureaux and which the Council alone may amend;

d. Make recommendations to the relevant authorities, with a view to improving

the ASEAN Scheme of Compulsory Motor Vehicle Insurance and
strengthening road traffic accident prevention, where necessary, through
amendments to the laws and regulations in force in the Contracting Parties;

e. Settle disputes between any two or more National Bureaux relating to the
application or interpretation of the provisions of this Protocol; and

f. Present a report annually to the ASEAN Insurance Regulators Meeting.

 Article 14
Institutional Arrangements

1. The ASEAN Insurance Regulators Meeting shall be responsible for

reviewing, coordinating and supervising all aspects relating to the effective
implementation of this Protocol.

2. The ASEAN Secretariat shall submit regular reports of the progress of

implementation of this Protocol to the Transit Transport Coordinating Board
established pursuant to Article 29.2 of the Agreement.

3. The ASEAN Secretariat shall provide the necessary technical support and
assistance to the ASEAN Insurance Regulators Meeting and other related
ASEAN bodies in their functions and responsibilities under this Protocol.

Article 15
Final Provisions

1. This Protocol shall be deposited with the Secretary-General of ASEAN who

shall promptly furnish a certified copy thereof to each Contracting Party.

2. This Protocol shall form an integral part of the Agreement.

3. This Protocol is subject to ratification or acceptance by the Contracting

Parties. The Instrument of Ratification or Acceptance shall be deposited with
the Secretary-General of ASEAN who shall promptly inform each Contracting
Party of such deposit.

4. This Protocol shall enter into force upon the deposit of Instruments of
Ratification or Acceptance by all Contracting Parties with the Secretary-
General of ASEAN. Contracting Parties which are unable to comply with the
Protocol shall be granted a grace period of two years from the date of signing
of the Protocol to work towards compliance.

5. Any amendment to the provisions of this Protocol and its Annexes shall be
effected by consent of all the Contracting Parties.

IN WITNESS WHEREOF, the undersigned, being duly authorised to

sign by their respective Governments, have signed Protocol 5 - ASEAN Scheme
of Compulsory Motor Vehicle Insurance.

DONE at Kuala Lumpur, Malaysia on the 8th day of April 2001, in a

single copy in the English language.
 For the Government of Brunei Darussalam

PEHIN DATO HAJI ABDUL,

MinisterR^p£@seiTti:tig"Ere Ministry of Finance

For the Government of the Kingdom of Cambodia

^ — — •—- /

KEAT CHHON
Senior Minister, Minister of Economy and Finance

For the Government of the Republic of Indonesia

PRIJADIPRAPTOSUHARDJO
Minister of Finance

For the Government of the Lao People's Democratic Republic

LIANE THYKEO
Vice Minister of Finance

For the Government of Malaysia

TUN DAIM ZAINUDDIN

Minister of Finance
 For the Government of the Union of Myanmar

U KHIN MAUNG THEIN

Minister of Finance and Revenue

For the Government of the Republic of the Philippines

ALBERTO G. ROMULO
Secretary of Finance

For the Government of the Republic of Singapore

LIMHNGKIANG
Second Minister for Finance

For the Government of the Kingdom of Thailand

SOMKID JATUSRIPITAK
Minister of Finance

For the Government of the Socialist Republic of Viet Nam

LE THI BANG TAM

Vice Minister of Finance