SUSEP Public Consultation No. 6/2021: Simplification of the rules applicable to Civil Liability Insurance

Through Public Notice No. 06/2021, the Superintendence of Private Insurance (SUSEP) has placed for public consultation a draft Circular, establishing new rules applicable to Civil Liability Insurance.

This rule is in line with SUSEP’s plan to enable greater flexibility for Insurers regarding the structuring of insurance contracts and the drafting of each coverage, in order to grant greater freedom and responsibility to companies for the products they offer in the market and to bring innovation to the sector, along the same lines as what was recently introduced by the new Circular applicable to damage insurance.

If enacted, the Circular will repeal SUSEP Circulars No. 336/2007, 348/2007, 437/2012, 476/2013 and 553/2017, putting an end to standardized policy models for civil liability insurance and enabling greater simplification of the clauses and adaptation of the product to the specific needs of each Insured.

Among the proposed changes, we highlight the possibility of payment by the Insurer directly to the injured third party, eliminating the need for the Insured to grant discharge to the obligation and subsequent request for reimbursement from the company. Also, in addition to judicial decisions and arbitration awards, the administrative decision rendered by the government will also be able to trigger the direct payment of insurance indemnity by the Insurer.

The new regulation also waives the need for a final and unappealable decision for the payment of indemnity by the Insurer and allows the sale of insurance without the provision of an aggregate limit for each coverage, enabling the Insureds to use the entire maximum limit of indemnity for different coverages, at their own discretion.

Other important changes are (i) permission to contract any civil liability policy, including D&O insurance, on an occurrence basis; (ii) the unification of the concepts of complementary and supplementary term in the so-called “additional term”; and (iii) the waiver of the requirement of a minimum term of 1 year for policies contracted on a claims-made basis.

The full text of the Draft Circular can be accessed through this link. Interested parties may send comments or suggestions on the text through email to until April 14, 2021, by filling out the specific standardized form.

Demarest’s Insurance & Reinsurance team will monitor the development of this public consultation until the publication of the final text, and is available to provide any clarifications on the matter.