CNSP Resolution No. 478/2024: New Guidelines for Vehicle Liability Insurance in Road Cargo Transportation
Following the conversion of Provisional Measure No. 1,153/22 into Law No. 14,599/23, which amended the existing legislation concerning civil liability insurance for road carriers, the Superintendence of Private Insurance (SUSEP) has issued CNSP Resolution No. 478/2024. This resolution establishes the regulations for Vehicle Civil Liability Insurance (RC-V) to cover bodily injury and material damage caused to third parties by vehicles used in road cargo transportation.
André Alarcon, Partner at Demarest.
Background
CNSP Resolution No. 478/2024 was published in accordance with Article 13, item III, of Law No. 11,442/2007, as amended by Law No. 14,599/2023. This amendment made it mandatory for carriers to take out RC-V insurance.
Key Provisions
The resolution introduces several key provisions:
- Purpose: The primary goal of the insurance is to cover bodily injury and material damage to third parties caused by vehicles used in road cargo transportation, or by the transported cargo itself while within the vehicle.
- Insured: The insured party must be a road cargo carrier duly registered with the National Registry of Road Cargo Carriers (RNTRC).
- Autonomous Cargo Carrier (TAC): If a TAC is subcontracted for transportation, the contractor is responsible for taking out the insurance per trip, on behalf of the TAC. The TAC is only required to maintain its own RC-V policy in cases without subcontracting.
- Collective Insurance: Collective insurance is permitted in two scenarios: (i) when a TAC is subcontracted, allowing the service contractor to take out the policy on behalf of multiple subcontracted TACs, and (ii) when the carrier opts for a global policy that includes its entire fleet.
- Defense Costs: Coverage for the reimbursement of legal costs and attorney’s fees incurred by the insured and/or claimant is optional, subject to the maximum indemnity limit. The policy’s terms must specify whether the insured can freely choose their attorneys.
- Emergency Expenses: Emergency expenses incurred by the insured to prevent or mitigate damage to third parties are covered, regardless of specific coverage. Excluded risks include damage to transported cargo caused by the insured vehicle.
- Exclusions: Coverage cannot be denied when (i) an accident occurs when the vehicle isn’t transporting cargo, (ii) road traffic is interrupted due to conservation work, slope failures, natural phenomena, or infrastructure breakdowns, and when regular ferry services or similar vessels are used to cross watercourses in the absence of bridges or viaducts. This applies to transportation scenarios.
Other Considerations
- Deductible: Establishing a deductible for property damage and bodily injury to third parties is prohibited, but is optional for other coverages, such as defense costs.
- Insured Amount and Limit Reinstatement: The insurance must be taken out with a minimum coverage of 35,000 Special Drawing Rights (SDRs) for bodily injury and 20,000 SDRs for property damage, per insured vehicle. The conversion to local currency should be done on the date the policy is taken out.
- Branch for Registration: Until SUSEP creates a dedicated branch for RC-V insurance operations, policies must be registered under the Optional Civil Liability – Auto (0553) branch. Once a specific branch is created, operations must be registered under the corresponding code.
- Adjustment of Registered Policies: Insurance plans registered before CNSP Resolution No. 478/2024 came into effect must be adjusted within 180 days of its publication.
CNSP Resolution No. 478/2024 has been in effect since December 27, 2024. The full regulation is available on the government’s website.
Contact Information
Demarest’s Insurance, Reinsurance, Health and Private Pension team is available to provide clarification on the new regulation and related legislation.
Related Partners:
- André Alarcon: [email protected]
- Camila Affonso Prado: [email protected]
- Laura Pelegrini: [email protected]
- Marcia Cicarelli Barbosa de Oliveira: [email protected]
Related Areas: Insurance, Reinsurance, Health and Private Pension
Marcia Cicarelli Barbosa de Oliveira
Camila Affonso Prado
