Bill sent to Congress to resume DPVAT collection

Ministry of Finance

Insurance collection was suspended in 2020, under the administration of former president Jair Bolsonaro

The Ministry of Finance sent a Bill to the National Congress, on an urgent basis, which provides for the return of DPVAT insurance collection, which guarantees compensation to victims of traffic accidents and their relatives, in cases of permanent disability or death, in addition to cover medical and hospital expenses. For three years now, vehicle owners across the country have not paid for mandatory insurance.

The charge – one of the items for releasing annual vehicle licensing – was suspended in 2020. That year, the consortium that managed DPVAT, led by Seguradora Líder, ended management.

Caixa Econômica Federal was then chosen to administer the insurance. To cover the costs of compensation, the Superintendence of Private Insurance (Susep) and the National Council of Private Insurance (CNSP) created – with the surplus resources existing in the Leader’s provisions – the Mandatory Insurance Fund for Personal Injury Caused by Motor Vehicles of Land Transport, or for its Cargo, to Persons Transported or Not (FDPVAT).

In justifying the complementary bill, the Minister of Finance, Fernando Haddad, highlighted that, after three years, the resources available in the Fund are not sufficient to cover compensation in 2024.

“After practically three years of mandatory insurance operating under an emergency and transitional regime, it is necessary to establish new legal bases to ensure adequate protection for traffic victims in a permanent and sustainable manner. The measure becomes even more relevant, considering that the FDPVAT resources available for the continued payment of compensation are not capable of supporting a new coverage exercise”, states Haddad in the PL.

The text also provides for the creation of a new fund with contributions from drivers. If approved, the administration of this fund must remain the responsibility of Caixa, “due to its expertise with the transitional model of DPVAT insurance over the last 3 years”. The National Council of Private Insurance (CNSP) will be the fund’s governance body and supervision of operations will be carried out by Susep.

Vehicle owners must be charged annually, along with licensing payments, based on agreements signed between the state Traffic Departments (Detrans) and Caixa. Also according to the project, the compensation amounts must be established via decree by President Luiz Inácio Lula da Silva.

To come into force in January 2024, the project must be voted by an absolute majority in the plenary of the Chamber of Deputies and the Senate. If the urgent request is approved, the text is considered more quickly, without going through committees.

*With information from Extra

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