CNI challenges increase in cargo insurance expenses in the Supreme Court

Confederation filed a lawsuit questioning the rule prohibiting cargo insurance contracts. CNI research highlights an increase in logistics expenses.

A National Confederation of Industry (CNI) filed a request with the Federal Supreme Court (STF) to question the changes made by Law 14.599/2023 in the hiring rules of the cargo insurance. These changes directly affect companies that need to ensure the protection of their goods during transport.

Protocoled in June, legislation determines which only the carrier can sign contracts de payments, prohibiting contracting by cargo owners. This restriction raises concerns about the safety of goods and the impact this change could have on the logistics sector. A cargo insurance law needs to be reviewed to ensure adequate protection of goods and the safety of transport operations.

Industries point to a 59% increase in cargo insurance

Within the scope of the Direct Action of Unconstitutionality (ADI), with a request for injunction, the CNI points to the non-observance of Principles of reasonableness and proportionality. This is because the measure extends to all transporters the exclusive right to take out mandatory cargo insurance.

For the National Confederation of Industry (CNI), there is intervention unmotivated in logistics and in risk management by excluding the shipper, an agent with better informational power and the ability to dilute risks involving its cargo.

The CNI also highlights that the law violet constitutional principles such as non-intervention in the economy and the market, the full exercise of autonomy of will, freedom of contract and the right to competition. This is because it encourages concentration in the road freight transport market in the hands of large transport companies, which allows for an arbitrary increase in profits.

'TO question which arises is serious and urgent, demands immediate preliminary suspension of the standard contested, whose reasoning demonstrates that the irreparable damage to legal security materialized during the forensic recess, on 29/12/2023, the deadline for renewing current insurance and adapting to the new regime’, highlights the action filed by the CNI.

‘This rule is a throwback from the point of view of risk management culture, as discard the millions of reais invested by companies over the years to reduce claims, have a more efficient and preserve not only products, but lives, in violation of the caput of art. 5th of the CF’, adds the ADI of the CNI.

Impact of the new law on road cargo insurance

Recent research released this Wednesday (20) by the CNI shows that the new legislation caused an average increase of 59% in expenses with cargo insurance.

According to the Special Survey of Cargo Insurance in Road Transport, carried out with 1.496 industrial companies, the impacts perceived by business owners are quite diverse, depending on the characteristics of the goods transported, the distances travelled, the capacity of the vehicle and the type of service provided.

• See more about the research here.

Source: Industry Portal