Cargo agents and customs agents can intermediate International Transportation insurance, however, they must contract a collective policy in their own name for the purpose.  The policy must specify the agent as policyholder, and based on this policy the agents can operate for their clients. Below follows the process involved in this intermediation:    

Rules for intermediation in International Transportation Insurance

The rules to contract International Transportation Insurance are specified in Resolution nº 107, of 2004, of the National Council of Private Insurance, and in Specific Policyholder Clause n◦ 315, of the Transportation Insurance Policy.

Regulations establish, for instance, that importers and exporters who contract insurance through “Policyholders” must, mandatorily, receive the respective insurance policy or certificate issued in their name by the insurer, and all the conditions and clauses of the transportation insurance policy. Other documents, like declarations and endorsements are not valid for the purpose.

The insureds have to present a declaration stating that they do not have any other policy for the proposed insurance, and authorize the Policyholder to place insurance for their benefit. 

All the insurances included in the policy are treated individually, and protect the rights and obligations between the insurer and the insured (importer and exporter).    

Insurance surcharge is illegal

The rules furthermore establish that the Policyholder is expressly barred from charging clients any amounts relating to insurance other than those specified by the insurer.  

If the policyholder adds a surcharge to International Transportation Insurance, requires from clients amounts greater than those charged by the insurer, the policyholder will be indulging in an illegal practice, which may be classified as a crime of misappropriation, fraud, tax evasion, money laundering, misrepresentation and illegal professional practice. 

The policyholder may be remunerated for insurance intermediation; however, the payments must be supported by insurance legislation. 

Severe penalties 

The penalties imposed on policyholders, the insurer and the insurance broker by SUSEP    (Superintendence of Private Insurance), the government body that regulates and supervises insurance markets, are severe and are applied according to the infringement.   The fines for irregularities range from R$ 5 thousand to R$ 1 million, and are set forth in CNSP’s Resolution 243 of 2011.

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