As part of the economic deregulation process led by Federico Sturzenegger, mandatory liability insurance for passengers has been eliminated. The measure leaves users in a more vulnerable situation in the event of accidents.
As reported by Ambito, the Ministry of Economy repealed a regulation that established a extension of compulsory insurance for the motor transport of passengers long distance.
It should be remembered that the repealed regulations established the extension of the Civil liability insurance for persons transported in long-distance interurban passenger motor transport services.
Now, through Summarized Resolution 416/2024 Published this Tuesday in the Official Gazette, the changes in the regulations governing the insurance sector were regulated, especially Regarding passenger transport insurance.
The fine print of the rule
- Elimination of clauses: Certain clauses of the General Regulations on Insurance Activity are eliminated, which simplifies the requirements for insurers and potentially reduces costs.
- Deregistration of reservations: Insurers operating long-distance passenger transport insurance must release a specific reserve, which will allow them to use those funds for other purposes.
- Modification of information requirements: The information requirements to be provided to policyholders in certain types of insurance are simplified.
- Repeal of previous resolution: The repeal of the previous resolution is regulated, consolidating the changes introduced in this new rule.
According to the official text, the resolution seeks to simplify and modernize regulatory aspects of the insurance sector, with a particular focus on insurance related to passenger transport. As well as encourage competition between transport companieswhich could result in lower rates for consumers.
However, it should be noted that, on the other hand, the elimination of Mandatory insurance could leave passengers in a more vulnerable situation in the event of accidents, since they would depend solely on the basic insurance contracted by the companies.
The decision raises a debate on the right balance between the need for a free market and consumer protection.
It is also worth noting that by repealing a previous resolution, the SSN is consolidating and updating the current regulations, eliminating rules that it no longer considers necessary or relevant. This may be aimed at avoiding regulatory contradictions and maintaining clearer and more up-to-date regulations.
Finally, he argues that the resolution will come into force immediately after its official publication, which means that insurers will have to start complying with these new requirements immediately.
Source: Ambito
