Superintendence of Insurance Approved Contractual Conditions of Insurance for Vehicle Transport Services Hired on Technological Platform

On July 10, 2019, the Superintendence of Insurance (the “SSN” after its Spanish acronym) published Resolution No. 615/2019, which approved the contractual conditions of the “Insurance for Vehicle Transport Services Hired through a Technological Platform”. These conditions were approved in general by the SSN, to be used by all insurance companies.

Through this Resolution, the SSN modified the General Regulation of the Insurance Activity (the “RGAA” after its Spanish acronym) to include this new coverage and to introduce the relevant changes to the regular motor vehicle insurance coverage.

With respect to the regular motor vehicle coverage, the Resolution:

1. Replaced Clause CG-CO 5.1 “Insured’s Special Duties”, contained in the Annex to article 23.6.a.1) of the RGAA, establishing a new special duty to the insured: give notice to the insurance company when the vehicle is used for vehicle transport services hired through a technological platform.
2. Introduced Clause CA-CC 18.1 Clause, whereby the third-party liability coverage must be suspended while the vehicle is used as a service for the transport of people or things hired through a technological platform.

With respect to the new coverage for vehicle transport services hired through a technological platform, the Resolution:

1. Introduced in item 3) of article 23.6.a) of the RGAA the new contractual conditions of these coverages, which are of mandatory use for all insurers wishing to write such business.
2. Established a mandatory, uniform and single limit per event of ARS 22 million (approximately, USD 488,000 on the date when this is published).
3. Established that insurance companies that provide this coverage demands insureds that they declare – in their insurance application form – that they have properly informed the insurance entity with which they took out their liability coverage, that the vehicle will now be used for rendering transport services hired through a technological platform.
4. Regarding the covered risk, it established that the insurer must keep the policyholder and/or insured and/or driver harmless for what they may owe to a third party as a consequence of damages caused by the vehicle used for the agreed service. Coverage includes claims for bodily injuries and/or death to persons, whether transported or not, for physical damages and for damage to things transported.
5. As opposed to the traditional conditions used in motor insurance, it established that the insurer must, in all cases, accept the defense of the policyholder and/or insured and/or driver, in civil, criminal and/or administrative proceedings. The insurer may not reject this defense, unless the claim itself is not covered. The insurer accepts this defense in all instances until proceedings are finally terminated. Nevertheless, the Resolution ratified the insurer’s right to deposit an amount equal to the liability limit without having to bear subsequent court costs and legal expenses. It also ratified the insurer’s right not to take on the defense of the policyholder and/or insured and/or driver if the claim itself is not covered.
6. It extended the notice to be given by the insurer if same decides to rescind the insurance policy without cause to 90 days.
7. Similarly, it extended the term for the policyholder, insured and/or driver to report a loss to 180 days.