Legal And Practical Challenges In The Implementation Of Comesa Yellow Card Scheme The Case Of Ethiopia

As regional motor third party liability insurance schemes involve parties, laws and institutions ofrndifferent member states, Claims handling of cross-border traffic accidents is a complex process.rnInvolving different stake holders and legal issues, the Yellow Card scheme of COMESA whichrnoperates in more than 13 countries couldn’t be free from challenges in its implementation.rnThus the main theme of this study is to identify possible legal and practical challenges in thernimplementation of the YCS in Ethiopia and to forward possible way outs.rnThe study concludes that, YCS is not clear as to, who is TP in the scheme.YCS in particular and thernCOMESA in general doesn’t have a comprehensive conflict of law rule. Claim handling procedure ofrnthe YCS follows a one line claim handling process and it is not in the interest of visiting victims.rnThe liability limit incorporated under Ethiopian MTPL proclamation is not compatible with thernassumptions in the scheme and it is both against the interest of foreign drivers and Ethiopian victims.rnFollowing the signing of the Protocol, states were entrusted with the responsibility to recognize thernvalidity of the YC in their territories and to enact laws and regulations for the establishment of YCS;rnparticularly for the designation of its NB. In a member state where single state-owned insurancerncompany has the monopoly of all insurance operations, the government of that party to the Protocolrnmay designate that company to act as it’s NB . Though the current situation in Ethiopia doesn’t allow state monopoly at all, EIC is still acting as NBE.

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