STF Suspends São Paulo's Expanded Insurance Rule for Motorcycle App Platforms

Overview

• The ruling, which Minister Alexandre de Moraes issued on June 26, provisionally voided the municipal clause that required larger personal accident insurance (APP) for moto‑por‑app services because it conflicted with federal insurance rules.
• Moraes found the decree added coverage and high minimum indemnity amounts that resemble third‑party liability and are regulated by the Union and SUSEP, calling the municipal values disproportionate and likely to block market entry.
• The STF told the city to process pending credenciamento requests in 15 days using federal law and the court's parameters, a move industry groups say removes a key barrier to platforms seeking to operate in São Paulo.
• The municipality defended the tougher rules as needed to protect riders, drivers and third parties and cited about R$35 million in annual municipal health costs from motorcycle traumas, while platforms and the Confederação Nacional de Serviços argued the measures effectively prevented licensing.
• The decision is a provisional measure within ADPF 1.296 and underscores a broader constitutional fight over municipal regulation of transport versus federal competence on insurance; final judgment on the full dispute remains pending.