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I posted this on another post and the last paragraph also comes from another poster on the same site. This can leave one stranded and in great difficulty unless they make sure they are now fully covered.

Increase in Car Insurance for Liability now required in Mexico (Including Baja California Sur and Baja California Norte)

I receive this "heads up" from my USA Mexican insurance Company today. I thought this is something that everyone ought to know about. If you bought your policy (as I did mine) before the 4th of February 2013, then you may not be sufficiently covered under several areas in The Labor Law of Mexico ( Article 502) . For example my car insurance is set to renew in September of this year. I will not be covered properly for the remainder of my current policy, unless I pay a small additional premium to cover the costs of the regulations that are REQUIRED for the insurance company to provide. As of this day 04 February 2013, this new addition goes into effect. Everyone might want to drag out your car insurance policy and review it, you may need to purchase additional Liability lifts in order to protect yourself. for peace of mind.


This is the exact notice I received from my insurance company.
“IMPACT OF CODE 502 REFORM ON MEXICO STATES AND YOUR ACE AND MAPFRE POLICIES”
“In December 2012, the Mexican government announced new reforms to the Labor Law in Mexico (Article 502). The Labor Law (Article 502) is used as the basis to compute limits to indemnify a person when someone dies in an accident. This caught the Mexican Insurers by surprise, as little notice or input was provided or requested of the Insurance Industry prior to the change. For many years, the indemnity limit was based on 730 days (Approximately 2 years) of minimum wage making $10,000-$20,000 a typical claim paid in any fatality.
Now, the time a dependent must be compensated has increased to 5,000 days.
Depending on the location of the accident, this may increase your financial exposure in Mexico to any at-fault auto accident which results in a fatality. Many Mexico states interpret Federal Laws themselves and create their own civil and criminal laws. Attached is a chart that shows the indemnity limits of the different states and how these states will apply them to their particular state.”

Regards,
robt65

Minimum Compensation Amount For A Deceased Person In An At-Fault Accident MEX/USA Rate = 13 x 1

Jim Labelle, CEO for Arizona-based International Insurance Group explains these new changes, “Historically, the Mexico courts have limited the maximum damage award for a negligent accident which caused a fatality to 750 days multiplied by the daily Mexico minimum wage, which in effect came to about $50,000 US dollars. This recent change now increases the maximum damage award to 5,000 days multiplied by the daily Mexico minimum wage, or roughly $300,000 US dollars”....> Make sure your MX insurance is upgraded accordingly.

Minimum Compensation Amount For A Deceased Person In An At-Fault Accident MEX/USA Rate = 13 x 1

Current Insurance Requirements in Effect Now

Baja California Sur
Current Criminal - 623,300 Current Civil - 3,734,600
Total Pesos - 4,357,900 Total U.S. Dollars - 335,223

Baja California Norte
Current Criminal - 311,650 Current Civil - 1,558,250
Total Pesos - 1,869,900 Total U.S. Dollars - 143,838

Hope this helps some stay out of trouble.

Regards,
Robt65

We're insured by Bajabound with HDI Seguros. They automatically increased the limit on existing policies.

Does this apply to insurance for cars registered in Mexico, or is it only for foreign-plated vehicles?

Originally Posted by kate

Does this apply to insurance for cars registered in Mexico, or is it only for foreign-plated vehicles?

Hi Kate,

I believe this is a federal law requiring all drivers Mexican or Foreign Plated car drives to carry the same protection. So I think it is for one and all. It really is about time as the Mexican National was as the old adage went "it was cheaper to make sure the person you hit was dead so if he / she were only injured, it was better to back up and make a second try at it! At least with the new limits, the family of the deceased is cared for, and certainly enables the family to get their act together financially. Before these new limits, it was pretty rough on a family financially, especially if a parent with children were to be severely injured or killed the surviving parent became a burden on the state.

Regards,
Robt65

Just bought a new policy today and went for the $300,000. I dig Bajabound.

Originally Posted by Ateo

Just bought a new policy today and went for the $300,000. I dig Bajabound.

Geoff is a very nice and generous man- which makes dealing with the matter of car insurance almost tolerable.

Originally Posted by Woooosh

Geoff is a very nice and generous man- which makes dealing with the matter of car insurance almost tolerable.

He wants to become a sponsor for our site - I need to get working on the code to get his banner up. He does do a lot of good work down here and I hope we can help him out...