Insurers will no longer cover tow truck and mechanical assistance services

The National Insurance Superintendency, through Synthesized Resolution 217/2024, introduced significant changes to the General Regulations of Insurance Activity, particularly with regard to automobile insurance coverage.

The resolution establishes a new wording for clause CG-CO 4.1 of subsection a.1) of the Annex to Point 23.6 of the General Regulations of Insurance Activity. This clause focuses on the costs of transporting and staying the insured vehicle in the event of damage, fire, theft or robbery. The most relevant changes are the following:

Transfer expenses: Coverage of normal, necessary and reasonable expenses for the transfer of the insured vehicle to the nearest place for inspection, repair or making it available to the insured is included.

Stay expenses: The expenses of staying the insured vehicle in a garage, workshop, premises or warehouse while it awaits repair or making it available to the insured are also covered.

Exclusions: The clause clarifies that transportation, towing, assistance and stay expenses related to mechanical, electrical, punctures, lack of fuel, among others, that are not related to accidents, fires, robberies or robberies will not be covered.

The resolution eliminates the clause “CA-CO 15.1. Trailer Service” of subsection a.1) of the Annex to Point 23.6 of the General Regulations of Insurance Activity. This means that towing will no longer be part of the mandatory auto insurance coverages.

The resolution will come into effect upon its publication in the Official Gazette. Insurers must adjust to the new changes within a maximum period of 90 days from the entry into force of the resolution.

The changes could affect auto insurance policyholders, who will need to review their coverages to understand how these changes may impact their particular situations. It is recommended that you consult with your insurers for guidance on how to proceed under the new regulations.

The National Insurance Superintendency, through this resolution, seeks to update and improve automobile insurance policies to offer better services to policyholders, adapting coverage to current needs and circumstances.

According to specialists, this is a decision that should have been made a long time ago, since mechanical assistance services and towing services are not part of the insurance purpose and alter the basic principle by which premiums must be allocated to sufficient compliance. of the insurer’s obligations and its permanent economic and financial capacity.

For many years, companies have been forced to allocate a substantial part of premium collection to providing a service that, in addition to being very expensive, is outsourced, which ends up generating other types of problems for an insurer, which ends up diverting resources and time to attend to issues that are not their own, also exposing themselves to a deterioration in their image with their clients.

Resolution Synthesized by El Litoral