 It does not apply to trains, boats, aircraft or bicycles, and it does not cover material damages (such as damage to vehicles).However, it does apply to accidents involving Land-based Automotive Vehicles and bicycles and pedestrians.It ensures compensation for accident victims for death (at R$13,500), permanent disability (up to R$13,500), and medical assistance and supplementary expenses (up to R$2,700) - the amounts are set by the National Private Insurance Council - CNSP (which has links with the Ministry of the Treasury), and ratified by Law 11,482/07.It is compulsory for all motor vehicle owners.