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New DPVAT: After suspension in 2020, mandatory insurance will be resumed next year with changes and a new name

Written by Bruno Teles
Published 30/10/2024 às 10:15
New DPVAT: After suspension in 2020, mandatory insurance will be resumed next year with changes and a new name
SPVAT will be charged from January (Image: Reproduction)

Get ready, drivers! After four years of absence, mandatory vehicle insurance, known as DPVAT, will be back in full force in January 2025, now in a renewed version: SPVAT (Mandatory Insurance for the Protection of Victims of Traffic Accidents). With this measure, the government seeks to fill the gap left by the end of DPVAT in 2020, which affected thousands of Brazilians who were financially destitute after accidents.

The new DPVAT, approved by the Lula government, aims to ensure protection for all victims of traffic accidents, offering compensation for death and permanent disability, as well as reimbursement for medical expenses. This return responds to the high demand from drivers and passengers who, without private insurance, are vulnerable in the event of accidents. It is estimated that approximately 400 people will be entitled to some type of compensation from SPVAT each year.

With an estimated annual value between R$50 and R$60, a figure still subject to confirmation, fee will be mandatory for all vehicle owners in Brazil, being included directly in the licensing and IPVA in the states that have entered into partnerships for the integrated collection process. However, this inclusion is still pending for a large part of the country.

SPVAT: who should pay and how will the new DPVAT be charged?

The implementation of SPVAT imposes new payment rules. In the states that have already signed up to the agreement with Caixa Econômica Federal — Bahia, Espírito Santo, Paraíba, Maranhão and Sergipe — the value of the new DPVAT will be added to the annual license fee, together with the IPVA. In the other states and the Federal District, drivers must pay directly to Caixa Econômica Federal, under penalty of having their vehicle registered as irregular.

Failure to pay SPVAT will be classified as a very serious infraction, with severe penalties: seven points on the license, a fine of R$293 and the possibility of the vehicle being seized.

Why is SPVAT so important for traffic in Brazil?

More than a bureaucratic requirement, SPVAT is seen as a form of social protection, offering essential support to victims of traffic accidents. The National Association of Detrans argues that the resumption of mandatory insurance not only promotes social justice, but also ensures that vehicles on the streets comply with the law, minimizing the risk of accidents without coverage and facilitating access to compensation.

By integrating the payment records into the Senatran system, the government hopes to improve control over vehicle regularization, increasing traffic safety. For drivers and passengers, this means less uncertainty and more financial support in the event of an incident.

What to expect in the coming years?

The reintroduction of mandatory insurance, now as SPVAT, raises important questions. For many, it offers the security of affordable compensation, essential for those who do not have private insurance. But is it really advantageous? Despite its social assistance purpose, the new DPVAT also implies an additional cost for vehicle owners.

The government has not yet announced a direct contribution to the SPVAT fund. The revenue is expected to come mainly from payments made by drivers themselves, which makes the insurance program a self-financing program. In other words, while the amount may seem affordable, the burden of financing falls on vehicle owners, who have to pay to keep their documents up to date.

Nevertheless, the measure is justified in view of the lack of a public alternative accident coverage since the end of DPVAT. For many victims and their families, SPVAT will be the only financial support. Time will tell whether the insurance will bring the promised benefits or whether it will represent yet another imposed fee without a significant return.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 2.300 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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