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Comments on the bill that proposes to exempt the obligation to acquire the SOAT when obtaining auto policy

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By Pedro Richter


Published 23 December 2020


In Peru various regulations have been approved with a marked populist content, without adequate technical or economic support. Thus, in terms of insurance, bill No. 05459/2020-CR is currently under discussion, which aims to exempt those who have purchased vehicle insurance with liability coverage from contracting SOAT (Compulsory Traffic Accident Insurance) in order to avoid paying twice for the same service.

The problem that arises is the absolute lack of knowledge by the Congress, in thinking that the SOAT and the liability coverage found in auto policies, present the same service, when this is not the case. In the first place, they are products from different lines of business (of accident and civil liability). They protect different interests, the SOAT has a social purpose focused mainly on the victim while the liability protects the insured's assets against this type of claims; They have a different form of settlement, in the SOAT, the logic of paying first and investigating later is applied and in fact it is an exception to the general settlement procedure provided for in article 74 of the LCS, to which the liability coverage is subject; and, finally, in the case of SOAT, there is a defined limit of exclusions while in the case of auto insurance, the stipulation of exclusions is freely determined by the insurer.