Portuguese 
English 
Spanish 
3 min of reading 
0 comments 
Confederation Filed Action Challenging Rule Banning Cargo Insurance Contracts. CNI Research Highlights Increase in Logistics Expenses.
The National Confederation of Industry (CNI) filed a request with the Supreme Federal Court (STF) to challenge the changes made by Law 14.599/2023 to the rules for contracting cargo insurance. These changes directly affect companies that need to ensure the protection of their goods during transport.
Filed in June, the legislation determines that only the carrier may enter into contracts for insurance, prohibiting the cargo owners from contracting. This restriction raises concerns about the safety of goods and the impact this change may have on the logistics sector. The cargo insurance law needs to be revised to ensure adequate protection of goods and the safety of transport operations.
Industries Report 59% Increase in Cargo Insurance
In the context of the Direct Action of Unconstitutionality (ADI), with a request for injunction, the CNI points to the disregard for the principles of reasonableness and proportionality. This is because the measure extends to all carriers the exclusivity of contracting mandatory insurance on the cargo.
-
BYD produces up to 4,400 cars per day and one vehicle every 20 seconds at its largest factory in Xi’an, surpasses Tesla in industrial pace, leaves Volkswagen far behind in pure electric vehicles, and consolidates China as the birthplace of the world’s largest electric car manufacturer.
-
While cities suffocate with smoke and fields burn worthless straw, India transforms sugarcane bagasse, non-recyclable plastic, and agricultural residue into bricks to build cheaper rural housing.
-
With 50 tons of plastic waste, a 30-meter bridge was assembled over a river in Scotland. It seems like an ordinary construction, but it doesn’t use traditional wood or steel and can even be disassembled.
-
Without concrete, without traditional cleaning, and without common separation, a block made of recycled plastic transforms problematic waste into a rigid piece for walls and structures.
For the National Confederation of Industry (CNI), there is an unwarranted intervention in logistics and risk management by excluding the shipper, an agent with better informational power and the ability to mitigate risks involving their cargo.
The CNI also emphasizes that the law violates constitutional principles such as non-intervention in the economy and the market, the full exercise of autonomy of will, freedom to contract, and the right to competition. This is because it encourages concentration in the cargo road transport market in the hands of large carriers, which allows for arbitrary profit increases.
‘The issue at hand is serious and urgent, requiring immediate interim suspension of the challenged norm, the justification of which demonstrates the potential irreparable injury to legal security during the judicial recess, on 12/29/2023, the deadline for renewing existing insurance and adapting to the new regime’, highlights the action filed by the CNI.
‘This rule is a setback from the perspective of risk management culture, as it dismisses the millions of reais invested by companies over the years to reduce losses, have a more efficient process, and preserve not only products but lives, in violation of the caput of art. 5 of the Federal Constitution’, adds the CNI’s ADI.
Impact of the New Law on Road Cargo Insurance
Recent research released this Wednesday (20) by the CNI demonstrates that the new legislation has caused an average increase of 59% in expenses related to cargo insurance.
According to the Special Survey on Cargo Insurance in Road Transport, conducted with 1,496 industrial companies, the impacts perceived by business owners are quite diversified, depending on the characteristics of the transported goods, the distances involved, the vehicle capacity, and the type of service provided.
- See more about the research here.
Source: Industry Portal
Be the first to react!