Why do transit transport vehicles have to be insured?

Protocol 5 of the ASEAN Framework Agreement on the Facilitation of Goods in Transit (AFAFGIT) mandates the requirement for a Third Party Liability Insurance for vehicle involved in the transit movement. Operators of such vehicle have to purchase the required insurance policies covering the country of departure, transit and destination.

The insurance documents will have to be carried in the vehicle for inspection at the border by competent authorities of the countries involved in the transit movement.

Once the purchase is completed, The insured will receive the insurance certificates and Blue Card for all the countries in the transit movement. The competent authorities entrusted to enforce the insurance requirements can inspect the insurance certificates anyway along the designated routes.