Senate approves mandatory insurance to compensate traffic accidents

The complementary bill (PLP) 233/2023, which creates new mandatory insurance for vehicle owners to pay compensation for traffic accidents, was approved this Wednesday (8) by the Senate plenary. The proposal goes to presidential approval.

The Mandatory Insurance for the Protection of Victims of Traffic Accidents (Spvat) replaces the old Dpvat (Personal Injury by Land Motor Vehicles), which was abolished in 2021. The insurance is used to compensate victims of traffic accidents, in addition to financing the System Unified Health System (SUS) and education and accident prevention actions through the National Traffic Secretariat.

Senator Jaques Wagner (PT-BA), leader of the Government in the Senate, clarified that the Dpvat is not a tax, it is solidarity insurance. According to him, the value of the new insurance will be between R$50 and R$60 per year, with no difference between motorcycles and vehicles, for people who suffer accidents.

Opposition parliamentarians spoke out against the government’s proposal. Eduardo Girão (Novo-CE) said that Brazilian citizens already pay too much tax. “No one can bear more fees and taxes for something that no one missed.” Senator Flávio Bolsonaro (PL-RJ) said that the government wants to increase revenue by increasing taxes, without caring about the citizen’s ability to pay.

Insurance coverage includes compensation for death and disability, reimbursement of expenses for medical assistance, medicines, orthopedic equipment, orthoses, prostheses and other therapeutic measures that are not available through the SUS. It also includes payment for funeral services and professional rehabilitation for victims of accidents resulting in partial disability.

Historic

Created in 1974, Dpvat was mandatory insurance designed to compensate victims of traffic accidents throughout the national territory. The charge was extinguished in 2021, when Caixa took over the management of Dpvat resources and payments in place of Seguradora Líder, which was a consortium of private companies. At the time, there was a surplus of around R$4.3 billion, which allowed insurance payments to victims of traffic accidents to be maintained.

Payment of compensation was suspended in November last year, due to lack of balance in the Dpvat fund. With the approval of the project, mandatory annual insurance will once again be charged to vehicle owners and will continue to be operated by Caixa Econômica Federal.

Tax Framework

In addition to creating Spvat, PLP 233/2023 changes the new fiscal framework, bringing forward the permission to open additional credit in the case of a fiscal surplus by two months. The change allows for an increase in Union expenses of around R$15.7 billion.

During the vote, Senator Randolfe Rodrigues (no party-AP), government leader in Congress, explained that anticipation is necessary for the government to make investments in health, in federal universities and maintain benefits such as gas assistance and popular pharmacy.

The PL proposed removing the article that was included in the original project. “We are proposing that this contraband be removed from the project, because this is not the appropriate instrument. This will only allow for greater disruption of public accounts. If the government wants to increase spending, reduce spending and improve the quality of public spending”, said senator Rogério Marinho (PL-RN).