Clipping of news on Brazilian Culture, Law and Citizenship
19/03/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Government will regulate prices modality that leave policyholders up to 30% lower for popular vehicles
Rio - The government will regulate by the end of this semester popular car insurance, which will be priced up to 30% less than the traditional to allow repairs with used parts, duly certified. The modality has the potential to more than double the insured fleet, as may reach 20 million vehicles over five years old and unprotected. In Brazil, 15 million cars are insured, 28% of the total outstanding.
However, 80% of these cars have up to five years of age, distortion that the government wants to end the creation of the popular insurance.
"The measures aim to encourage the hiring of insurance, particularly for used cars, we see a significant decrease in penetration of insurance product that becomes proportionally more expensive relative to the value of the vehicle," said Superintendent of Private Insurance Superintendency ( Susep), Luciano Portal Santanna.
PUBLIC CONSULTATION
The rules have been designed and will be placed in public consultation at the end of the month, so that insurers give opinions on the subject. In the new format, the auto insurance can reach the population that lacks protection for the high cost. The average value of the policy is R$ 1700, compared to the average worker income of R$ 1,820, according to January data from the IBGE.
"Our sales are concentrated in Class C and lost about half the price," says Marcelo Blay, the online brokerage Minute Insurance.
Second attempt
This is the second attempt to launch popular product for automobiles. The first, in 2006, was not successful, since it does not allow the use of used parts and required liability coverage for third, causing disinterest insurers.
For the current rule, consumers have the option of hiring a traditional safe or popular. In the latter case, it will have to cover what's necessary - unless you want protection for theft, for example, you can choose only to crash - and also have the option to repair it with used parts that can not be considered safety items such as brake and suspension. Doors, bumpers and fenders can be used.
Reporting by Flávia Furlan
Source: The Day - Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.