Vehicle insurance acts in a complementary manner to the Compulsory Traffic Accident Insurance (SOAT) and the Certificates against Traffic Accidents (CAT), said the Superintendency of Banking, Insurance and AFP (SBS).
“When the coverage (SOAT) of an accident ends, the vehicle policy can complete the medical expenses or compensation for death,” said the deputy superintendent of Insurance of the SBS, Carlos Izaguirre.
The SOAT / CAT is a mandatory contracting insurance, with annual validity, immediate coverage to all the injured and exclusions limited by law, with a payment term up to 10 calendar days, and an insured sum that is the same for all those who participate in the accident, he noted.
While in vehicle insurance, contracting is at the will of the parties and with the usual coverage such as damage to the vehicle, personal accidents of the occupants and civil liability against third parties, he said.
In vehicle insurance, the validity and conditions of the policy depend on the insurer and the contractor, the payment term is up to 30 days after the loss is accepted, and the insured sum may be exhausted and therefore, the next accident may not have coverage, he stressed.
Premiums, coverage and exclusions
He then argued that the SOAT and CAT are usually paid at the beginning of the term, so it is not canceled due to non-payment of premiums. “The validity is one year,” said the official.
In addition, the coverages and exclusions are defined in the legislation, being among the exclusions those caused in automobile races and other motor vehicle competitions, and those that occurred outside the national territory, he mentioned.
Among the exclusions, also, those that occurred in places not open to public transit, those that occurred as consequences of wars, earthquakes, among others, stand out, he emphasized.
He said that vehicle insurance is usually paid in installments and the Insurance Contract Law empowers the company to suspend coverage due to non-payment, added the SBS official.
“This is relevant and adds complexity, in the case, the coverage is integrated, as the bill intends, because there would be no way to discern between a suspended coverage and an active one in the verification operations,” he said regarding the proposal. 5459/2020 of the Congress.
The aforementioned bill of Congress proposes to exclude from the payment of the SOAT and CAT, when a private vehicle insurance of greater coverage has been contracted, in order to avoid a double payment.
Vehicle insurance coverage and exclusions may vary from company to company, and even within the same company, between its different policies. “If it is accepted as a replacement for SOAT / CAT, the review of conditions would make it difficult to monitor the vehicle in transit,” he added.
Exclusions, in addition to those indicated in the SOAT / CAT, usually include excessive alcohol consumption and reckless vehicle recklessness, it reported. “If accepted as a replacement for SOAT / CAT, these exclusions would deprive third parties affected in a traffic accident,” he added.
Loss attention in the SOAT / CAT is activated regardless of whether the driver of the vehicle was at fault, he said. “This condition guarantees the immediate attention of the victims of a traffic accident,” he stressed.
It indicated that it is sufficient for the damage caused to be accredited for the payment of the compensation established by law to correspond. “The SOAT / CAT is intended to cover bodily injury and death, immediately, unconditionally and effectively throughout its annual term,” he added.
In vehicle insurance, verification is required that any of the exclusions considered in the insurance policy have not been incurred, he said.
For personal accident coverage, it is usually necessary to present police expertise to determine the causes of the accident and determine if the insurance company will cover the loss, he said.
In addition, he mentioned that the liability coverage only operates, once the guilt of the driver of the insured vehicle has been determined. “This process can take a significant time,” he added.
In the SOAT / CAT scope, once the corresponding documents have been submitted, the insurer has the obligation to pay (the claim) to the beneficiaries within the following 10 days, the official said.
He mentioned that there are legal provisions for the transparency of information. “Insurance companies are required to publish the SOAT’s list of unclaimed claims,” the official added.
In case, compensation for death is not collected, they go to the Insurance Compensation Fund to attend to coverage of medical expenses and burial for accidents with unidentified vehicles, he said.
In vehicle insurance, once the documents indicated in the policy have been presented and the claim has been evaluated by the company, the insurer will have 30 days to pay the claim, he said.
In this insurance, the civil liability coverage, which would grant payments for medical expenses, burial and death to third parties, requires an evaluation that can take time, removing immediacy from the assistance of third parties involved in a traffic accident, he mentioned.
In addition, this insurance does not contribute to the Insurance Compensation Fund, he added.
In the SOAT / CAT, the sums insured for each type of coverage are defined in the legislation and apply to each person affected in a traffic accident, no matter how many, he indicated.
Thus, four Tax Tax Units (UIT) correspond to death, up to four UITs for permanent disability, up to one UIT for temporary disability, up to five UITs for medical expenses and up to one UIT for burial expenses, he said.
In addition, if the same vehicle has more than one accident within the term of the SOAT / CAT, the amount of compensation is not altered, he said.
In vehicle insurance, vehicle policies usually have maximum limits for each coverage, and not for each person involved in a traffic accident, he said.
In these insurances, the more people are affected in a traffic accident, the compensation that each one would receive within the policy could be reduced, he said.
In case there are multiple accidents within the coverage of the policy, the insured amount could be exhausted, thus unprotecting the people affected by the traffic accident, he said.
Vehicle insurance acts in a complementary way to SOAT / CAT, he asserted, because when the coverage of an accident ends, the vehicle policy can complete, for example, medical expenses or compensation for death.
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Posted on: 11/22/2020