2025 brought changes to vehicle protection associations with the approval of Complementary Law (LC) 213/25 in January. The document provides that these organizations are subject to the requirements and supervision of the Private Insurance Supervision Authority (Susep), the federal agency responsible for the insurance market.
The Vehicle Protection Association is an organization established with the purpose of protecting specific people from specified dangers such as robbery, theft, and accidents. Members pay a daily fee, and if their vehicle is involved in an accident, damages are covered by money collected by all members. Although the ultimate goal of protection is the same, it is a different model than private insurance.
“L.C. 213/2025 marks the end of the gray zone. Companies operating mutual protection now have clear rules, supervision and adaptation deadlines. The main changes include the registration of entities, governance, separation of assets, the possibility of administrative sanctions and, above all, the decision that the group’s assets will be managed by a company authorized by Scep,” explains Paulo Magalhães Gómez, a lawyer at Magalhães Gómez Advogados.
In our expert opinion, this change will improve transparency, accountability and protection for members. He elaborates that asset segregation means that company and group resources are no longer commingled, reducing the risk of asset disruption and bankruptcy (when there are more debts than resources to repay).
Gomez revealed that the first phase of adaptation, in which the registration of associations was mandatory, ended in July. Only those who registered by the deadline will be able to continue operating while the National Council for Private Insurance (CNSP) regulates the law, and this process constitutes the second stage.
“Then, the third stage will come, when each association will have to hire a licensed administrator and send a contract to Susep in order to obtain ‘regular’ status. Those who do not register by July 15 will be irregular and will have to cease their activities and will be subject to sanctions as well as administrative procedures (PAS) and public civil proceedings. There are no plans to extend this period,” warns Gomez.
According to lawyers, there are several points to keep in mind when formally concluding a collusion agreement. As this document is not private insurance, it must reflect the mutualistic nature of this business and comply with LC 213/2025 and the standards issued by the CNSP and Susep.
The guidelines require that contracts include information such as: Identification of parties. Objects (mutualistic asset protection and group scope). Rules for entering and exiting. Contribution criteria and expense/claim allocation. Regulation and Payment Procedures. Clearly highlight exclusions and deductions. Governance and Director Duties. Regular reporting. Separation of assets between entities and groups. Links/contracts with authorized administrators. Data processing pursuant to the General Personal Data Protection Law (LGPD). Complaint and Dispute Resolution Channel.
“For members, the practical rules are to check if the association is registered and ask for documents and statements. For companies, it’s about compliance from now on, well-written membership agreements, governance, separation of assets, and when the CNSP compiles its rules, it hires an administrator and submits everything to Susep.LC 213/2025 has come to professionalize this sector. Anyone who adapts can gain longevity and reduce debt,” Gomez concluded.
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