AGREEMENT OF 16 OCTOBER 1972 CONCLUDED BY THE NATIONAL BUREAUX OF MOTOR VEHICLE INSURERS ON INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES .
2 THAT QUESTION AROSE IN THE COURSE OF A DISPUTE BETWEEN THE PARTIES TO THE MAIN PROCEEDINGS AS TO WHETHER THE TRIBUNAL DE GRANDE INSTANCE HAD JURISDICTION TO DECIDE WHO WAS LIABLE TO COMPENSATE THE VICTIM OF A CAR ACCIDENT, IN THE LIGHT OF THE ARBITRATION CLAUSES CONTAINED IN THE ABOVEMENTIONED AGREEMENTS .
LAW APPLICABLE
3 IN THE COMMUNITY, INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES NORMALLY BASED IN ANOTHER MEMBER STATE IS GOVERNED BY PRIVATE-LAW AGREEMENTS AND COMMUNITY MEASURES .
4 THE FIRST SUCH AGREEMENT, KNOWN AS THE UNIFORM AGREEMENT BETWEEN BUREAUX, WAS SIGNED ON 17 DECEMBER 1953 BETWEEN THE CENTRAL BUREAUX OF THE MEMBER STATES; IT SET UP A SYSTEM OF COOPERATION KNOWN AS THE "GREEN CARD SCHEME", BASED ON A STANDARD GREEN CARD INSURANCE CERTIFICATE . UNDER THAT SCHEME, EACH NATIONAL CENTRAL BUREAU, AN ASSOCIATION COMPOSED OF ALL OR THE MAJORITY OF INSURANCE COMPANIES, UNDERTAKES TO SETTLE IN ITS OWN COUNTRY THE DAMAGE CAUSED BY VEHICLES CARRYING A GREEN CARD WHICH ARE REGISTERED IN OTHER MEMBER STATES AND TO REIMBURSE FOREIGN BUREAUX WHICH HAVE PAID COMPENSATION FOR DAMAGE CAUSED BY VEHICLES INSURED IN ITS OWN COUNTRY .
5 ARTICLE 13 OF THE AGREEMENT PROVIDES THAT "... ANY DISPUTE BETWEEN BUREAUX REGARDING THE INTERPRETATION AND EFFECTS OF THIS AGREEMENT SHALL BE SUBMITTED TO ARBITRATORS .." AND THAT "THE DECISION OF THE ARBITRATORS SHALL BE FINAL AND BINDING ON THE BUREAUX ...".
6 IN ORDER TO FACILITATE FURTHER THE MOVEMENT OF PERSONS TRAVELLING BETWEEN MEMBER STATES, THE COUNCIL ADOPTED DIRECTIVE 72/166/EEC OF 24 APRIL 1972 ON THE APPROXIMATION OF THE LAWS OF THE MEMBER STATES RELATING TO INSURANCE AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES, AND TO THE ENFORCEMENT OF THE OBLIGATION TO INSURE AGAINST SUCH LIABILITY ( OFFICIAL JOURNAL, ENGLISH SPECIAL EDITION 1972 ( II ), P . 360 ), WHICH SET UP A SYSTEM BASED ON THE FOLLOWING PRINCIPLES : COMPULSORY INSURANCE, UNDER THE NATIONAL LEGISLATION OF EACH MEMBER STATE, AGAINST CIVIL LIABILITY IN RESPECT OF THE USE OF MOTOR VEHICLES ( ARTICLE 3 ) AND A CORRESPONDING PRESUMPTION THAT ALL COMMUNITY MOTOR VEHICLES TRAVELLING IN COMMUNITY TERRITORY ARE COVERED BY INSURANCE; THE ABOLITION OF CHECKS ON GREEN CARDS FOR VEHICLES NORMALLY BASED IN A MEMBER STATE WHEN THEY CROSS INTRA-COMMUNITY FRONTIERS ( ARTICLE 2*(1 )*).
7 THE FUNCTIONING OF THIS SYSTEM PRESUPPOSES THAT EACH NATIONAL BUREAU WILL GUARANTEE COMPENSATION IN RESPECT OF ANY LOSS OR INJURY GIVING ENTITLEMENT TO COMPENSATION CAUSED IN ITS TERRITORY BY A VEHICLE NORMALLY BASED IN A MEMBER STATE, WHETHER OR NOT IT IS INSURED, AND WILL HAVE A RIGHT TO RECOVER FROM THE BUREAU OF THE COUNTRY IN WHICH THE VEHICLE IS NORMALLY BASED OR AGAINST THE INSURER . WITH REFERENCE TO THAT REQUIREMENT, ARTICLE 2*(2 ) OF THE DIRECTIVE PROVIDES AS FOLLOWS :