Law that recreated Brazil’s DPVAT insurance in 2025 repealed

The measure introduced as part of the fiscal package submitted by the Federal Government to the Brazilian Congress repeals a law that recreated the compulsory insurance in 2025

On December 31, 2024, Supplementary Law No. 211/2024 was published in the Federal Official Gazette of Brazil, repealing Supplementary Law No. 207/2024 – the framework for the new Compulsory Insurance for the Protection of Traffic Accident Victims (“SPVAT”) – which would replace the former Compulsory Insurance against Personal Injury Caused by Motor Road Vehicles (DPVAT) in 2025.

The now-revoked creation of the SPVAT would have reinstated the mandatory insurance premium for protecting traffic accident victims as part of Brazil’s annual vehicle licensing and registration fee.

The amendments brought by the new law were still pending approval before the Board of Directors of the Superintendence of Private Insurance (SUSEP) and still needed to be submitted for the National Council of Private Insurance’s (CNSP) analysis. However, after the Legislative Branch approved Supplementary Law No. 211/2024, the SPVAT regulation was removed from the agenda.

The law was repealed within the context of a fiscal package presented by the Federal Government. Currently, there is no forecast regarding the reinstatement of SPVAT or its replacement with any other compulsory insurance.

Demarest’s Insurance, Reinsurance, Health, and Private Pension team has been monitoring discussions on the matter and remains available to provide further clarifications.