The inter-Bureaux agreement is the Brown Cardís legal basis and defines the relationship between the National Bureaux. According to this document, a National Bureau serves as:

- an Issuing Bureau, by issuing the Brown Card;
- a Handling Bureau, as it proceeds to settle claims in the territory of the accident.

What are the claims settlement steps as far as the Brown Card Scheme goes?
Firstly,  when an accident occurs within the territory of a Member State, involving a Brown Card holder,

- the National Bureau should be notified and any claim arising from the accident should be addressed to the National Bureau of the territory of the accident, duly mandated according to the terms of the agreement,


- without waiting for a formal claim against the holder, the Handling Bureau thus informed proceeds with the necessary investigations and evaluation of the loss.

Secondly, the Handling Bureau informs the issuing Bureau which in turn will inform the member who delivered the Brown Card to the insured.

Thirdly,  it is the Handling Bureauís responsibility to examine and negotiate all claims with the Third Party or Parties.

Fourthly, it submits to the Issuing Bureau:

- a comprehensive report indicating the nature and extent of the damage;
- a medical report, in case of injury or death;
- details of the proposed settlement terms.

The total claims value should consist of:
- compensation payable to third parties;
- legal expenses;
- all other incidental expenses excluding handling charges.
Payments arising from court fines will in no way be met by the insurers.