New rules applicable to Transport Insurance submitted to Public Consultation by SUSEP

The Superintendence of Private Insurance (“SUSEP”) placed for Public Consultation a draft Circular that provides for the new rules applicable to Transport Insurance, currently established by SUSEP Circular No. 354/2007 (Public Consultation No. 19/2022).

Among the proposed amendments, we highlight the provision for the end of standard plans for transport insurance, in accordance with the simplification of rules introduced by SUSEP in other insurance lines, such as civil liability insurance and surety bonds.

In addition, the draft introduces the following provisions:

• The minimum coverage to be included in transport insurance clauses, as well as in special cargo insurance (live animals, cattle, bulb root plants, bulk shipments, bulk oil, coal, wood and natural rubber, among others).
• Freedom to design new coverage products, provided that such coverages are related to losses that impact the transportation of goods or property owned by or related to the insured.
• Exclusion of the period of three (3) days for prior written consultation with the insurer, regarding the acceptance of higher Maximum Insured Limit (“LMG”) amounts, which allow the parties to agree on a different time period for notification (of the intent to raise the insured limit) more suitable to the current landscape of digital and virtual communications.
• Easement of the provision regarding the termination of the contract period, which enables the parties to agree on its final term depending on the conditions of the operation (currently, the end of the insured period is specified by the standard plan).
• Specific reference to transport insurance of international cargo and goods and the need to adapt products to be in compliance with international conventions.
• Repeal of SUSEP Circular No. 354/2007 and the following regulations:
  • SUSEP Circular No. 421/2011 (Civil Liability of the Multimodal Transport Operator – Cargo)
  • SUSEP Circular No. 422/2011 (Civil Liability of the Road Carrier for Disappearance of Cargo – RCF-DC)
  • Circular Letter No. 2/2015/SUSEP/DIRAT/CGPRO (Civil Liability of the Road Cargo Carrier – RCTC-C)
  • SUSEP Circular No. 586/2019 (Civil Liability of the Road Carrier for Disappearance of Cargo – RCF-DC)

The new Regulation is aligned with recent regulatory amendments proposed by the Brazilian Supervisor, which aim to reduce regulatory requirements and bring greater contractual freedom, by enabling insurers to adjust their products to the specific needs of each insured party.

As mentioned in the statement of justifications of the draft, the Supervisor points out that the Public Consultation aims to allow interested parties to validate or request modifications in relation to the basic coverages currently marketed.

The full draft of the Circular can be accessed here. Interested parties can submit contributions to the text via e-mail to cgres.rj@susep.gov.br, and file a specific standardized table, by December 22, 2022.

Demarest’s Insurance, Reinsurance, Health and Private Pension team will monitor the development of this public consultation through to the publication of the final text and is available to provide any further clarifications that may be necessary.