Parliamentary Agricultural Front challenges Provisional Measure 1.153/2022

The Agricultural Parliamentary Front (FPA) expressed concern regarding Provisional Measure No. 1.153/2022, specifically with regard to cargo insurance. The FPA states that the MP will have a negative impact on the cargo transport sector, especially agricultural transport, affecting food production and the competitiveness of the Brazilian economy.

According to the text of the MP, insurance must be contracted unilaterally by transporters, who will choose the insurer, without allowing the transport service contractor to include its conditions in the insurance agreement on the service and cargo. The FPA argues that this measure ignores market dynamics and stifles commercial relations, leading to increased freight costs.

The Parliamentary Front also expressed concern about the potential increase in accidents, robberies, theft and fraud involving cargo transport, as the MP makes regressive action against transporters impossible. This means that the transport service contractor will not be able to bind the transporter to comply with operational obligations associated with the provision of transport services, including those provided for in the Risk Management Plans (PGR).

The FPA also points out that the MP violates article 170 of the Federal Constitution, by prohibiting the contractor for cargo transportation services from acting, in the same operation, as administrator of the transportation services. Such a measure would have a negative impact on economic groups that have their own transport companies.

The Parliamentary Front emphasizes that the matter has already been debated in Congress through Bill 2080/2015, which did not advance, and considers the debate in the Provisional Measure to be disrespectful to Parliament.

The FPA warns that the situation has economic, criminal and operational implications. The MP will result in more expensive insurance, an increase in freight costs and, consequently, more expensive food for the Brazilian population.

Below, the text contested by the FPA:

Art. 3º Law No. 11.442, of January 5, 2007, comes into force with the following changes:

"Art. 5º-B ........................................

§ 5 The contractor or subcontractor of cargo transport services is prohibited from acting, in the same operation, as administrator of the transport services referred to in the caput, directly or indirectly, including through a company to which he is linked as administrator or partner or that is part of the same economic group.” (NR)

"Art 13. The following are exclusively contracted by transporters, individuals or legal entities, providing road freight transport services:

I - mandatory civil liability insurance for road cargo carriers, to cover losses or damages caused to transported cargo as a result of road accidents;

II - optional civil liability insurance for the road cargo transporter, to cover cargo theft, when established in the contract or bill of transport; It is

III - optional insurance for civil liability for vehicles and material damage and bodily damage, to cover damage caused to third parties by the motor vehicle used in road freight transport.

§ 1º It is exclusively up to the transporter to choose the insurer, without stipulation of the conditions and characteristics of the policy by the transport service contractor.

§ 2 The insurance referred to in item I of the caput may be contracted by the service contractor when the TAC is contracted directly, in which case the service contractor will be responsible for any losses, without any burden to the independent transporter.

§ 3 When purchasing additional insurance coverage against risks already covered by the carrier's policies, the transport service contractor may not bind the carrier to the fulfillment of operational obligations associated with the provision of transport services, including those provided for in the Risk Management Plans - PGR.

§ 4 The insurance referred to in section II of the caput does not exclude or preclude the contracting of other optional insurance to cover simple and qualified theft, misappropriation, embezzlement, simple extortion or kidnapping, or any other accidents, losses or damages caused by the transported cargo.

§ 5 The insurance referred to in section III of the caput may be taken out in a globalized policy, involving the entire fleet, without the need for individual listing of vehicles.” (NR)