New Coverage Limits for Motor Vehicle Civil Liability Insurance

Resolution No. 1162/2018 (the “Resolution”) updates the civil coverage limits for the mandatory and voluntary civil liability insurance for motor vehicles and also for hospital and burial expenses per person.

Regarding mandatory civil liability insurance, the Argentine Superintendence of Insurance (“SSN”) replaced Clause SO-RC 4.1 by the Clause SO-RC 5.1, which is in the Annex of point 23.6 inc. a 1) of the General Regulation of Insurance Activity (“RGAA”). The new clause raises the coverage limits for death and total disability per person from ARS 400.000 to ARS 1.000.000 and per event from ARS 800.000 to ARS 2.000.000. The Resolution also modifies the maximum compensatory sums for hospital expenses from ARS 30.000 to ARS 45.000, and for burial expenses from ARS 16.000 to ARS 24.000.

With regard to voluntary civil liability insurance, the SSN raised the maximum coverage limit per event from ARS 6.000.000 to ARS 10.000.000 for private use cars, pickup trucks, towed vehicles, rental cars without a driver, motor-vehicles, motorbikes and motorhomes; and from ARS 18.000.000 to ARS 22.000.000 for taxis, passenger cars, rural and road machinery, trailers and semi-trailer trucks, emergency service and security forces vehicles, as well as  transport vehicles for less than eight passengers plus the driver that do not exceed 3.500 kg when loaded. The new maximum sums for voluntary civil liability insurance will apply to all policies issued as from April 1, 2019.

Finally, the Resolution establishes that to extend the coverage limits for voluntary civil liability insurance, insurance companies should submit the following documentation to the SSN: (i) certified copy of the minute of the administration body or decision of the registered legal representative in the case of foreign branches, and (ii) risk underwriting and retention policy, according to point 24.1 of the RGAA.