Motor Vehicle Insurance Liability Caps are Adjusted
The Argentine Superintendence of Insurance has increased motor vehicle insurance liability caps as of April 1, 2021.
Pursuant to Resolution No. 268/2021, new caps apply to all policies and renewals as of April 1, 2021. Below is a brief comparison of current and upcoming caps:
|
Effective since 2019 |
As of April 1, 2021 |
|
|
Voluntary liability insurance (cars, pickup trucks, automobiles, motorbikes, and motorhomes) |
AR$10,000,000 |
AR$17,500,000 |
|
- Taxis, passenger cars, rural and road machinery, trailers and semi-trailer trucks, emergency service and security forces vehicles |
AR$22,000,000 |
AR$38,500,000 |
|
- Transport vehicles that can carry over eight passengers or vehicles weighing over 3500 kilograms |
AR$30,000,000* |
AR$58,000,000 |
|
*effective since 2016 |
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|
|
Mandatory liability insurance (death and total disability) per person and event, increases to double the listed amount in events involving multiple persons |
AR$1,000,000 |
AR$1,750,000 |
|
|
|
|
|
Mandatory compensation for hospital and burial expenses |
AR$45,000 and AR$24,000 |
AR$80,000 and AR$45,000 |
|
|
|
|
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Mandatory deductible for taxis and passenger cars |
AR$30,000 |
AR$42,000 |
Insurers willing to extend the new voluntary insurance liability caps must request authorization from the Superintendence of Insurance (the SSN, for its Spanish acronym) and submit the following documents: (i) a certified copy of the decision by the company’s board of directors or legal representative if it is a branch of a foreign company, and (ii) risk underwriting and retention policy, in accordance with point 24.1 of the General Regulation on Insurance Activities.
The Resolution charges the SSN’s Technical and Regulations Department with the task of determining whether liability insurance caps for motor vehicles are sufficient every October, which would apply to new policies and renewals starting January 1 of the following year.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.