Lula sends project to Congress to recreate DPVAT insurance
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President Luiz Inácio Lula da Silva (PT) forwarded complementary bill 233/23 to the Chamber of Deputies, which recreates the mandatory insurance to protect victims of traffic accidents, the DPVAT. The text was prepared by the Minister of Finance, Fernando Haddad (PT) and needs to be approved by congressmen this year, for the charge to take effect in 2024.
DPVAT insurance was charged when licensing vehicles until 2020. Former president Jair Bolsonaro (PL) signed a provisional measure extinguishing DPVAT in 2019, but the MP lost its validity in April 2020, due to the lack of analysis by the National Congress . At the end of December 2020, the National Council of Private Insurance (CNSP), linked to the Ministry of Economy, abolished the collection of mandatory insurance in 2021. According to the Private Insurance Superintendency, the decision was motivated by the fact that there was already cash sufficient resources to cover the operation in 2021.
The PT government’s proposal envisages the creation of a new framework to compensate victims of traffic accidents on land, and refers to the insurance as SPVAT.
“This is the establishment of mandatory insurance aimed at guaranteeing, from January 1, 2024, compensation for personal damage caused by land-based motor vehicles, or their cargo, to people transported or not, and to their respective beneficiaries or dependents, relating to accidents occurring throughout the national territory”, explains the government.
The text suggests a private mutual fund to be managed by Caixa Econômica Federal, which is also responsible for the management and administration of various funds related to public policies. Since 2021, mandatory insurance has already been paid by Caixa.
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