14/07/2023

What's new in the world of mobility and motor insurance

Times are changing fast and the digital revolution, as well as the adoption of "alternative" mobility practices with less environmental impact, bring new contexts, advantages and simplifications to our daily lives, but also new risks.

Starting with the advantages:

A) The display of the motor insurance label on the front window of vehicles ceased to be mandatory on 11 July (Law 32/2023 of 10 July), eliminating fines of more than €100.

The same Law makes it clear that the green card may now be issued and made available only digitally, without prejudice to its issue and availability on paper, at no additional cost, at the request of the policyholder".

B) There is an increasing implementation of techniques to combat insurance fraud through the application of artificial intelligence.

For honest and caring citizens, the notion that the cost of insurance is greatly affected by fraud committed by those who are not, brings a kind of sense of injustice - though of course they must understand the economic rationale of insurers, which is based on forecasting statistics and histories of large aggregates.

One of the compensations insurers have found for not having to fully reflect on customers the significant increase in claims settlement costs caused by widespread inflation in the values of parts, labour, medical services, etc. is the reduction in the cost of processes and flows by their increasing digitisation and the possibility of remote execution, virtually.

But it is easy to understand that if fraud has always existed, it risks being amplified by the virtuality of analyses.

Hence, the insurance industry is encouraging the development of artificial intelligence methodologies for fraud detection in virtual claims reporting/analysis processes.

There are several technological startups around the world launching solutions in this field, among which Portuguese ones already with remarkable success.

This is a good outlook, even if by 2023 the average cost of insurance has actually increased.

C) The time taken to settle motor claims is, across all authorised insurers and at the various stages of the settlement process, within the limits set by law in almost 100 % of cases, and that the average times observed were clearly below the legal time limits.

We will shortly publish in more detail a summary of the allusive report recently published by the supervisory authority - the ASF - for the year 2022.

In the same report, it is emphasised that claims were only 1 claim per 1,547 vehicles insured. We would like to remind you that since 2006 there has been a control of all claims processes relating to the more than 6 million existing motor policies.

Useful adviceWhere appropriate, report accidents using the Friendly Motor Accident Declaration (DAAA), as average settlement times at various stages of the claims process are much shorter when the DAAA is used, as it is a simplified process agreed between the companies.

D) Urban investment in eco-mobility routes, incentives to purchase and provide equipment make new forms of transport increasingly a solution, not always entirely convenient, but with numerous advantages:

Reduction of greenhouse gas emissions
Cleaner air
Less noise pollution
Easier parking
Less stress when travelling
Combining physical exercise with mobility,
...

But pressure from public authorities to force the adoption of so-called "micromobility" (scooters, bicycles, skates and skateboards) has led them to postpone the implementation of mandatory care with regard to the associated risks, whether in terms of accidents of the drivers themselves or in damages caused to third parties. The risks exist and should not be neglected, and official rules are beginning to emerge.

Alternative mobility and risk management

Bicycles and scooters: new rules for circulation on public roads

"Bicycles are vehicles with two or more wheels, propelled by the driver's own efforts by means of pedals or similar devices", according to Article 112 of the Highway Code. This group includes bicycles and scooters with and without motors.

According to the above-mentioned decree-law, a motorised cycle is a cycle equipped with an auxiliary motor with a maximum continuous power of 1.0 kW, the power supply of which is progressively reduced with increasing speed and stopped if the speed of 25 km/h is reached, or rather if the rider stops pedalling.

They are assimilated to bicycles:

(a) motorised cycles

(b) electrically powered scooters, as well as electrically powered, self-balancing and self-propelled circulating devices or other similar powered means of circulation, when equipped with a motor with a maximum continuous power of 0,25 kW and reaching a maximum threshold speed of 25 km/h.

Anyone travelling by bicycle or scooter is subject to the rules of the road and, although an examination of the Highway Code is not compulsory, it is necessary to know them and to keep abreast of any changes that may be introduced. Some of these took place at the beginning of 2021, through the Decree-Law no. 102-B/2020; others were added later:

It is compulsory to carry an identification document (not having it with you will result in a fine in a stop operation).
Driving under the influence of alcohol prohibited
Use of mobile phones and headphones while driving prohibited
Bicycles and scooters with or without motors may ride on the road, on the verge, on cycle paths (if they exist, although they are not obliged to do so) or in lanes reserved for public transport, depending on municipal regulations.
Circulation on roadsides: only permitted when they are safe and large enough and provided that the safety of pedestrians is not jeopardised.
Circulation on pavements: only vehicles driven by children up to the age of 10 may be ridden on pavements, provided they do not endanger or disturb pedestrians - only non-motorised scooters may be ridden on pavements. For other cycles, if you need to ride on the pavement, you must dismount and carry the scooter/bicycle by the hand.
In motorways, no scooters and bicycles are allowed to circulate.
Bicycles and scooters, with or without motorisation may only carry their driver, except where:

(a) are fitted with more than one pair of pedals capable of operating the vehicle simultaneously, in which case the maximum number of persons to be carried corresponds to the number of pairs of pedals and each person carried must be able to operate only one pair of pedals;

(b) are designed by construction with passenger seats, in which case, in addition to the driver, they may carry one or two passengers, depending on the number of such seats;

Bicycles must be fitted with restraint systems if they are being ridden with children under 12 years of age and less than 1.35 metres tall
The lights are mandatory on bicycles, both front and rear, and should be used in the event of reduced light (dawn, dusk, night and/or adverse weather conditions).
Maximum speed: Anyone who rides a scooter or a self-propelled, self-balancing, electric motor-driven traffic device or a similar motor-driven traffic device equipped with a motor with a maximum continuous power exceeding 0.25 kW or reaches a maximum speed of more than 25 km/h (...), shall be punished with a fine of (euro) 60 to (euro) 300, the Decree-Law no. 102-B/2020
Hands should always be on the handlebarsexcept to signal manoeuvres
Use of helmet: Although not compulsory for scooter or bicycle riders, the use of a helmet is nevertheless recommended, especially in the case of electric scooters, for safety reasons.
Insurance: although not required, insurance for civil liability for damages to third partiesis recommended. You should also check your existing insurance to see if you have cover for accidents that may cause injury or even disability to you in the future. driving this type of vehicle - many health policies exclude expenses arising from accidents with scooters... . On the other hand, it may make sense to cover damage to the bicycle or even theftFor this purpose, insurance already exists which, while naturally requiring preventive care, is designed for these risks.

We are here to advise you on the best risk protection for your mobility solutions!

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What's new in the world of mobility and motor insurance