Brazil's STJ rules against abusive vehicle protection clauses

The Third Panel of the Superior Tribunal de Justiça (STJ) has ruled that clauses in vehicle protection associations requiring automatic loss of coverage for failing to report an accident within 30 minutes or leaving the scene are abusive. The court determined that such peremptory deadlines violate CNSP Resolution 491/2026.

In its ruling, the STJ established that the Consumer Defense Code (CDC) applies to mutualistic property protection operations, regardless of the non-profit status of the associations. To deny coverage, an entity must now demonstrate that the member's conduct specifically hindered investigations, prevented inspections, significantly increased risk, or involved bad faith, rather than relying solely on a breach of internal regulations.

The case originated from a dispute involving the Association for Protection and Benefits (Copebens), which denied material damage compensation to a member who reported an accident hours after the event and left the site. While the Rio Grande do Sul Court of Justice (TJRS) had previously overturned a lower court decision—arguing the relationship was associative rather than consumer-based—the STJ reinstated the original order for the association to indemnify the member.