DPVAT: Senate CCJ approves return of mandatory vehicle insurance and R$15 billion extra in the budget | Policy

The Constitution and Justice Committee (CCJ) of the Senate approved this Tuesday (7) the project that resumes collection of mandatory land vehicle insuranceformerly known as DPVAT.

The proposal, which should also be voted on this Tuesday by the House plenary, It also allows the government to anticipate the increase in expenses in the 2024 Budget.

In practice, This measure will free up more than R$15 billion in expenses, which should be used by Planalto to offset a partial amount of commission amendments – vetoed by President Luiz Inácio Lula da Silva (PT) in January (read more here).

In addition to resuming the collection of mandatory insurance and authorizing the increase in expenses, the project approved by the CCJ also changes the name of the mechanism.

Insurance protecting victims of traffic accidents will no longer be called DPVAT It is will be renamed Compulsory Insurance for the Protection of Traffic Accident Victims (SPVAT).

The approved text determines that Taking out insurance will be mandatory and annual for all owners of motor land vehicles, such as cars, motorcycles, buses and trucks.

The value of the fee and the differences by type of vehicle will be defined later by the National Private Insurance Council (CNSP).

According to the rapporteur of the proposal, the government leader in the Senate, Jaques Wagner (PT-BA), a study by the Ministry of Finance estimates that the tariff will vary between R$50 It is R$60. If the proposal becomes law, the charge must reoccur in 2025.

The project allows states to charge insurance in conjunction with annual licensing or Motor Vehicle Property Tax (IPVA). The federative units that follow this path will be able to receive up to 1% of the amount collected annually by SPVAT.

Insurance resources may also be transferred to states and municipalities with collective public transport. The percentage of the transfer may vary between 35% and 40% of the amount collected by the insurance.

In agreement with the opposition, Jaques announced that President Lula will veto parts of the proposal that establish a fine for non-payment of insurance. The text also classifies the lack of payment as a serious infraction.

The compromise with the veto was made so that the proposal would not undergo changes and would not need to return to the Chamberwhere the text was already approved in April.

Senate must vote today on return of DPVAT

SPVAT may pay compensation to accident victims in cases of:

• death
• and permanent, total or partial disability

You can also reimburse expenses for:

• medical care, such as physical therapy, medications, and orthopedic equipment
• funeral services
• and professional rehabilitation for victims with partial disability

The compensation amounts will be defined by the CNSP, and the insurance will be managed by Caixa Econômica Federal, through a fund.

According to the proposal, insurance payment will be necessary for the owner to be able to carry out:

• annual licensing
• the transfer of ownership of the vehicle
• and the cancellation of vehicle registration

At the request of the government, during the analysis in the Chamber, a device was included that, in practice, allows the government to increase spending in 2024.

The text anticipates by two months the authorization for Planalto to open additional credit in the event of a fiscal surplus — when tax revenues exceed expenses, disregarding interest on public debt.

The main one should be the partial recovery of the amount vetoed by Lula (R$5.6 billion) for commission amendments. According to Julia Duailibi’s blog on g1the government also intends to use the amounts to undo budgetary blockages.

The veto of the amendments should be considered this Thursday (9) in a joint session of Congress. The government articulates a recomposition of R$3.6 billion in the value of this type of amendment.

“To hit this hammer, I need to locate where these R$3.6 billion are. It is not news that, in the DPVAT project itself, the location of this money was included. If it doesn’t appear, we vote, and the government will have to block it, respecting the Fiscal Responsibility Law”, said Jaques Wagner.