Reported: Major change in Mexican vehicle liability law

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Posted by Fred Metcalf on February 01, 2013 at 13:47:49:

It has been reported to me by Jim Labelle of the International Insurance Group (MexPro.com) that the limit on liability, in an accident involving a death, has just been raised from about $50,000US to $300,000US. There may be some variation between Mexican states, but these amounts give an estimate of the limits, both old and new.

Here is the information Jim is sending to his customers:


In the past, the liability damages imposed on an at fault driver who caused a negligent fatality in Mexico were capped at 750 days multiplied by the local Mexico Minimum Wage (approximately $ 50,000 total damages in most Mexican States). Effective immediately, that limit has been increased by the Mexican Government to 5,000 days multiplied by the local Mexico minimum wage (up to approximately $ 300,000 US Dollars total damages, depending on the Mexican State).

WE NOW RECOMMEND THAT ALL OUR CUSTOMERS PURCHASE A MINIMUM OF $300,000 in LIABILITY LMITS, AND SERIOUSLY CONSIDER THE $500,000 LIMIT!

What happens if I have a current policy in force with limits of $ 50,000 or $ 100,000?

Each of our main underwriters, ABA Seguros, ACE Seguros, and GNP Seguros have agreed to honor the $ 300,000 Death Liability Limit on all currently in force policies until expiration. So you do not have to do anything if you purchased your existing policy on or before February 4, 2013 and it is still in force…regardless of the current limit on their declarations page, the insurers listed above will honor the $ 300,000 Death Liability limit until the expiration of any in force policies purchased on or before February 4, 2013.

What limits do you suggest we choose when purchasing future new or renewal policies for Mexico?

We suggest that you now use the same level of care regarding Mexico Liability limits that you would use when purchasing a USA or Canadian auto liability policy. The radical change to Mexico Liability law means that claims for Death Liability in Mexico will now be similar to the damages that are often imposed by courts in the USA and Canada in similar cases.


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