Friday, December 8, 2023

Starting October, 0km motorcycle dealers must issue mandatory insurance to deliver units

Motorcycle accidents often occur in units that do not have insurance to cover damages to third parties. With this regulation, 0km units cannot circulate without this annual insurance

Starting next October 9, every motorcycle dealer or point of sale in Argentina must issue mandatory insurance before releasing a unit onto public roads. The move was announced by the National Road Safety Agency and a tool created by the entity together with the National Directorate of National Registries of Automotive Property and Pledge Credits (DNRPA), with the purpose of implementing the established in Article 68 of the National Traffic Law, where the “insurance is mandatory for motorcycles under the same conditions that apply to cars.”

The official communication released this Thursday morning by the agency of the Ministry of Transportation establishes that this regulation will also be mandatory for the patenting process for 0km motorcycles before the DNRPA.

“In the coming days, no new motorcycle will be able to circulate on the streets if it does not have a mandatory insurance contract before leaving the dealership. This is something that happened many years ago in cars and for some reason never happened in motorcycles. With this, the purpose of ANSV is to change an old practice to continue building a new street culture for all Argentines,” said executive director Pablo Martínez Carignano.

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The informality of motorcycle use in Argentina is very high. Many units are circulating without insurance. This step seeks to register and ensure coverage of those sold as 0km

Therefore, on the date announced, all motorcycle sales points in the country must implement and manage the 0km Motorcycle Digital Form – Annual Mandatory Insurance, where they must register with ANSV as a sales point. Once the point of sale is made, authorized personnel must be registered to manage the digital form, which must complete the necessary data on the motorcycle sold, the user and the insurance. It will also issue a payment slip which, after payment, will generate a form number. With that form number you can complete the patenting process for 0 km motorcycle.

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The measure seeks to ensure that if a motorcyclist is involved in a traffic incident, the insurance can take care of the incident and cover the damages caused.

Although the mandatory nature is the great innovation, this form already exists, although it is not in digital format, which allows many people to ride a motorcycle without any insurance, even if this is a violation of the rules established by the National Traffic Law.

Motorcycle dealerships must register as an insurance point of sale in order to deliver units to buyers.

“The motorcycle market is very different from the car. The user is very quick and informal. In addition, there is also a market of informal sellers who need to register. We still have no communication from the Motorcycle Chamber, but apparently that the whole process is quite laborious. In the motorcycle there is a type of coupon that is issued when selling a unit, which is valid for seven days, and is what allows the buyer to circulate without a license for that period of time. Selling insurance is something that almost all of us do, even if it is not necessary to sell a motorcycle,” said a businessman in the sector with many points of sale in the province of Buenos Aires .

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“It’s not like that with cars. The dealer has no obligation to issue 0km insurance if the customer pays for the car in cash. You can take it without showing any certificate of coverage, something that does not happen if it is a car bought through a plan or financing, where the obligation is to get our insurance to protect the amount where not you are still 100% owner. . But mandatory insurance for driving on public roads is not a function of the dealer. Generally, clients ask us for vehicle information and issue their own policy. We dealers have insurance to offer for those who want to buy it from us, but it is not an obligation that we have,” explained the manager of a chain of official dealerships in the city of Buenos Aires.

Nation World News Desk
Nation World News Desk
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