On November 24, 2020, SUSEP Circular No. 617/2020 was published, which, in accordance with its Article 1, approves the General Conditions for the Civil Liability Insurance of Road Carriers in International Travel – Damage to Cargo Transported (“RCTR-VI-C”), as well as the mutual agreement between domestic and foreign insurance companies.
Until now, the subject had been defined by SUSEP Circulars No. 2/1990 and No. 570/2018, which provided for, respectively, the General Conditions for RCTR-VI-C Insurance and the obligation of Brazilian insurance companies to submit information on agreements established with foreign insurers, relating to RCTR-VI-C insurance, among others.
The new Circular maintains the obligation for Brazilian insurers to submit information regarding agreements established with foreign insurers only for operations related to RCTR-VI-C insurance, under the Agreement on International Land Transport (ATIT), establishing in Article 2 that, for the purposes of this Rule, Brazilian insurers are:
I – Represented, when they have entered into a mutual agreement with foreign insurers , in the event of an accident abroad with a Brazilian vehicle, covered by the RCTR-VI-C insurance, provided it is contracted with a Brazilian insurer;
II – Representatives, when they have entered into a mutual agreement with foreign insurers, in the event of an accident with a foreign vehicle, occurring in Brazilian territory, covered by the RCTR-VI-C insurance, provided it has been contracted with a foreign insurer.
Thus, by means of this new Circular, the obligation set forth in SUSEP Circular No. 570/2018 regarding the submission of information by Brazilian insurers was withdrawn, regarding the following Insurances:
- Green Card – civil liability of the owner and/or driver of land vehicles in international travel, for damage caused to people or objects not transported;
- Blue Card – civil liability of the road carrier in international travel, for damage caused to people or objects, transported or not, except for the cargo transported.
Also, the new Circular stipulates in its Article 3 that one of the directors of the Brazilian insurance company will be responsible for supervising the agreements provided for in the Circular and, in its Article 4, lists specific information that all Brazilian insurers that sell RCTR-VI-C insurance and that are representatives of foreign insurers must register, through the SUSEP website.
In addition, Articles 5 and 6, respectively, establish that the information registered by insurance companies shall be consolidated and made available on SUSEP’s website for public consultation, and that failure to comply with Articles 2 to 5 of this Circular shall result in the application of the penalties provided for in current legislation.
Finally, Annex I, published together with the Circular, presents the General Conditions of RCTR-VI-C insurance, dealing mainly with (i) the object of the insurance and its covered risks; (ii) geographic scope; (iii) excluded risks; (iv) goods or merchandise not covered by the insurance contract; (v) liability for the transport of goods or merchandise that are subject to specific conditions; (vi) period of commencement and termination of risks; (vii) conditions of carriage; and (viii) conditions for Insurer’s exemption from liability.
SUSEP Circular No. 617/2020 will come into force on December 1, 2020, repealing SUSEP Circulars Nos. 2/1990 and 570/2018.
Demarest’s Insurance and Reinsurance team is available to provide any additional clarifications that may be necessary.