Summary.
The bill amends Article 2 of Law No. 68 of 2016 while retaining the requirement that owners of motor vehicles and trailer units purchase and maintain basic compulsory traffic accident insurance. The insurance amounts are those set by the Republic’s Vehicle Traffic Regulations (Reglamento de Tránsito Vehicular). It also provides that civil liability coverage under comprehensive motor policies follows the terms and conditions of compulsory insurance policies only up to the coverage limit set by those regulations. That limit must account for risks of damage to private parties and state property.
Insurers issuing the policies must provide the competent authority with information about insured vehicles and policy validity. At the end of the policy term, owners required to purchase compulsory insurance would be entitled to a refund of 50% of the amount paid, provided they have had no accident during that term requiring the policy coverage to be used. The refund is subject to prior verification with the competent authority. Beneficiaries may choose to use the refunded amount to purchase the policy for the following annual period from the same insurer.
The insurer has no more than 20 business days to make the refund, counted from the insured person’s request. If the insurer fails to do so, the affected person may file a claim with the state regulatory authority so that the applicable sanctions for noncompliance can be imposed. These provisions add both the refund entitlement and the means of claiming it to the amended Article 2.
The bill also replaces Article 3 of Law 68 of 2016. The compulsory policy must provide uniform minimum coverage for damage to another person’s property, whether privately or publicly owned, and for bodily injury, within the prescribed limits, coverage and term. The issuing insurer, the driver and the vehicle owner are liable for damage caused by the insured vehicle. The insurer is liable up to the amount stated in the policy; the driver and owner are jointly and severally liable for the corresponding amount, as applicable.
A final provision identifies Articles 2 and 3 of Law 68 of December 13, 2016 as the provisions amended and states that the proposed law would take effect on the day following its promulgation. Its subject matter concerns the competent authority that verifies accidents, the state regulatory authority, insurance companies, owners and drivers of motor vehicles and trailer units, and people whose property or bodily integrity is affected in traffic incidents.
What it proposes.
- Basic compulsory traffic accident insurance.
- Refund of part of the amount paid for a policy under the proposed conditions.
- Minimum coverage and liability for damage caused by an insured vehicle.
Who it would affect.
- Owners of motor vehicles and trailer units.
- Insurance companies issuing motor policies.
- Drivers of insured vehicles.
- People affected by property damage or bodily injury.
Key points.
- Owners of motor vehicles and trailer units must purchase and maintain compulsory insurance in the amounts set by the Vehicle Traffic Regulations.Art. 1
- Civil liability coverage under comprehensive policies follows compulsory insurance terms up to the limit in the Vehicle Traffic Regulations, which must cover risks of damage to private parties and state property.Art. 1
- Insurers must inform the competent authority about insured vehicles and the validity of their policies.Art. 1
- At the end of the policy term, a refund of 50% of the amount paid is available if no accident required the coverage to be used, subject to verification with the competent authority; beneficiaries may apply it to the next annual policy with the same insurer.Art. 1
- The insurer has up to 20 business days from the request to make the refund; failure to do so allows a claim before the state regulatory authority for the applicable sanctions.Art. 1
- The compulsory policy must provide uniform minimum coverage for damage to another person’s private or state-owned property and for bodily injury.Art. 2
- The insurer is liable up to the policy amount for damage caused by the insured vehicle, while the driver and owner are jointly and severally liable for the corresponding amount, as applicable.Art. 2
- The bill identifies the amendment of Articles 2 and 3 of Law 68 of December 13, 2016 and sets its effective date as the day after promulgation.Arts. 3-4