Cargo Insurance for Road Transport: Understand the Rules for Changes and Their Implications

In the road freight transportation scenario, the recent Law 14,599 brought significant changes that impact both carriers and shippers. This legislation, enacted on June 19, 2023, focuses on the mandatory purchase of insurance to protect cargo during transportation. In this article, we will explore in detail what changes with Law 14,599, who must pay for cargo insurance, what to do if you already have insurance in force, and how this legislation affects the day-to-day lives of carriers.

What has changed with Law 14,599?

Law 14,599 brings with it a series of relevant changes regarding civil liability in road freight transport. The main change is the responsibility that now falls on the carrier to take out insurance coverage for loss or damage to the transported cargo. This insurance is mandatory and includes:

RCTR-C (Civil Liability Insurance for Road Cargo Carriers)

This insurance covers losses or damages caused to cargo due to potential collisions, rollovers, explosions and traffic accidents. It is a fundamental part of protecting both the carrier and the cargo owner.

RC-DC (Road Carrier Civil Liability Insurance for Cargo Disappearance)

RC-DC provides coverage against theft, simple and qualified theft, misappropriation or seizure of cargo during its transportation. It is especially relevant to prevent financial losses resulting from criminal events.

RC-V (Vehicle Liability Insurance)

This insurance aims to cover physical and material damages caused to third parties by the vehicle used to transport cargo. It guarantees an additional layer of protection in the event of accidents that result in damages to third parties.

Impacts of Law 14,599 for Transporters

Law 14,599 brings some important changes that directly affect carriers:

Greater Flexibility and Autonomy

Before the implementation of this law, carriers were often limited to the rules defined between the cargo owner and the insurer, especially regarding routes and stops during transportation. With the new legislation, carriers gain greater flexibility and autonomy, being able to negotiate their own terms for cargo insurance. This provides greater adaptability to the business and the specific needs of each transport.

Responsibility for Purchasing Cargo Insurance

One of the most significant changes is the transfer of responsibility for purchasing cargo insurance to carriers. Previously, it was often the shipper or contracting company that would purchase this insurance. Now, according to Law 14,599, it is the responsibility of carriers, as service providers, to insure against potential loss or damage to the goods being transported. This places the responsibility squarely in the hands of those who are carrying out the transportation.

Cargo Insurance in Force: What to Do?

It is natural that many carriers already have cargo insurance contracts in force at the time of publication of Law 14,599. The good news is that these contracts are not impacted by the new legislation. If you already have cargo insurance contracted before June 19, 2023, it will remain in force until the date of its renewal. From that moment on, it will be necessary to adjust it to comply with the new guidelines established by the law.

What Do Carriers Need to Do Now?

Given these legislative changes, it is essential that carriers are aware of the new obligations and act accordingly. Here are some actions that carriers should consider:

Assess Your Coverage Needs

With the responsibility for purchasing cargo insurance now in the hands of carriers, it is essential to carefully assess your coverage needs. Consider the specific risks associated with your type of transportation and choose the right insurance to protect your cargo and your business.

Negotiate with Insurance Companies

With the new law, carriers have the freedom to negotiate directly with insurers to obtain the best terms and prices. This can result in more personalized and advantageous insurance contracts.

Stay Updated

Laws and regulations can change over time. It is important to stay up to date on the latest information and requirements regarding cargo insurance for road transport.

Economic Impact and Consumer Benefits

Law 14,599 has the potential to generate a positive economic impact for both carriers and consumers. By preventing carriers and shippers from having to purchase multiple policies, the new legislation reduces bureaucracy and associated costs, which in turn can lead to lower prices for transported products. This directly benefits consumers, since the cost of insurance will no longer be passed on in such a burdensome manner.

Conclusion

Law 14,599 brought significant changes to the road freight transport sector, making it the responsibility of carriers to purchase cargo insurance. This provides greater flexibility and autonomy to carriers, while potentially leading to economic benefits for the sector and consumers. It is crucial that carriers understand the implications of this new legislation and act accordingly to ensure that their cargo is adequately protected and that they comply with the new legal obligations.

If you are a carrier or work in the road freight transport sector, it is essential to stay up to date with the changes brought about by Law 14,599 and take the necessary measures to comply with its new requirements. Taking out adequate insurance is essential to protect your business and your cargo, thus ensuring safe and efficient operations. Stay up to date and be prepared for the new guidelines of this constantly evolving sector.