Question marks hangs over north car insurance coverage

By Elias Hazou

GREEK CYPRIOTS using their own cars to visit the north may be putting themselves out on a limb, as highlighted by the recent arrest and jailing of a 19-year-old involved in an accident.

Christos Lovaris yesterday appeared before a ‘court’ in the occupied part of Nicosia. He was detained by authorities after refusing to pay a hefty 12,000 euro compensation fee for allegedly wrecking a Turkish-Cypriot’s car.

Lovaris was released by Turkish Cypriot ‘police’ later in the afternoon and fined £55. The damage to the luxury car of the Turkish Cypriot involved in the crash will be covered jointly by the Greek and Turkish Cypriot insurance companies after an agreement was reached between them last night. A number of car accidents involving Greeks have already taken place in the north, but this was the most serious to date.

As well as receiving extensive media coverage, Lovaris’ detainment elicited angry remarks from politicians, who stressed that Greek Cypriots should exercise extra caution when driving in the north.

What is controversial about this case is the apparently arbitrary compensation fee quoted. Lovaris’ father claims the Turkish Cypriot authorities kept changing their tune about the figures, eventually going up to 12,000 euros, or about £7,000.

The youth’s car was insured by a Greek Cypriot company whose contracts state they cover the entire territory of Cyprus but the breakaway regime does not recognise this. To enter the north Lovaris had to pay the eight-pound insurance fee to one of the Turkish-Cypriot companies operating at the checkpoints. This fee covers only up to £2,000 in damages.

But there is no way for anyone this side of the border to ascertain the extent of the damages in an accident or who was at fault; the relevant police report is compiled by the breakaway regime’s authorities. What this means is there are no guarantees — one man crossing the Ledra Palace checkpoint yesterday remarked that “you’re on your own out there”.

When the checkpoints first opened a couple of weeks ago, Turkish-Cypriot insurance companies charged four pounds, but this was quickly upped. Saloon cars now have to pay eight pounds, while larger vehicles such as vans or minibuses pay £10. This supposedly is good for three days after the time of recording.

Greek Cypriots at the checkpoints told the Cyprus Mail the insurance agents did not bother to explain in detail what the insurance covers. “We just pay up, and then you’re on your way.” Another woman’s receipt read that the insurance was valid for 24 hours, not three days.

Sigorta may be buzzing at the checkpoints, but in this case the Turkish word for insurance or security may be anything but that.

Yesterday things began clearing up on how the government would deal with Turkish Cypriots coming into the south with their own vehicles. This will be allowed as of 10 May, by which time the House will amend the salient law.

As things stand, for political reasons the government does not recognise Turkish-Cypriot licence plates. The amended legislation will, however, allow non-registered cars to secure a temporary circulation permit.

According to an announcement by the Communications Ministry yesterday, there will be no charge for the circulation permit and a small insurance fee paid to registered Greek-Cypriot companies. In an apparent case of one-upmanship, Communications Minister Kikis Kazamias said the fee would be less expensive than the one charged by the breakaway regime.

Insurance companies yesterday hinted they were waiting for their cue from the government. Evi Stavrou, Marketing Manager for Gan Direct Insurance, told the Cyprus Mail that a few days ago they received a memo from the insurance association asking for their thoughts. Her company’s response was that they would be interested in insuring Turkish-Cypriot vehicles under certain conditions. A spokesman for another company said they would wait and see: “A lot of things need to be straightened out first, like every other matter since things opened up.”