Brazil implements new auto insurance claim and liability rules

New regulations and legislative proposals in Brazil are set to tighten requirements for auto insurance companies regarding claim processing and victim support.

Under Resolution No. 496 from the National Council of Private Insurance (CNSP), insurers must now provide a response regarding coverage within 30 days of receiving all required documentation. If coverage is approved, the indemnity must be paid within an additional 30 days. Failure to comply results in a fine of 2% of the amount due, plus legal interest and monetary updates. Additionally, insurers are now required to provide the insured party with the expert's report, even if a claim is denied.

Separately, Bill 3218/26 is currently under analysis in the Chamber of Deputies. This proposal would mandate that insurers provide a replacement vehicle to third parties involved in accidents when the insured party is found liable. The replacement car would need to be available within five business days and remain available until the damaged vehicle is repaired or replaced. The bill aims to mitigate professional and personal disruptions for innocent victims during the repair period.