A proposal by President Mustafa Akinci that car insurance be made valid on both sides of divided Cyprus has received the support of Turkish Cypriot motorists.
President Akinci made the suggestion within in the framework of confidence building measures during his meeting with Greek Cypriot leader Nicos Anastasiades on 9 August. The move would increase the flow of traffic to and from North Cyprus. Currently motorists crossing from either side are obliged to buy extra insurance.
However, president of the Northern Cyprus Insurance and Reinsurance Companies, Raif Çukurov has said that the idea would be difficult to implement.
Çukurova, said the proposal should be comprehensively considered but there is no clear information, he added:
“The insurance companies should review the agreements made every year in order to implement this proposal and insurance companies on both sides will have reservations about this issue, as there will be fears about competition”, he said. “Let’s say this application comes into existence, how will this work? In other words, if the policy given by the insurance companies will be valid on both sides, will the Turkish motorists be willing to buy a policy from a Greek company? “Will each society receive insurance from the region where they live, or can they get it from the region they went? In addition, in case of an accident claim made in the Turkish courts? Will it be counted [as legal] in the Greek courts? These questions must be answered first”. Also, Greek Cypriot insurers have more advantages in terms of taxes, he added.