New higher Mexican liability limits required

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News Release to All prospective clients of


Increased 3rd party liability for accidents deaths benefits in Mexico

The Official Journal of the Federation, published on November 30, outlined amendments to Article 502 of the Federal Labour Act by increasing the amount of compensation payable in the event of being found liable for the death of a third party.

There has been an increase in the number of days used to calculate the amount from 730 days to 5,000 days.

By applying the current minimum wage, this results in a increase in the compensatory amounts for liability arising deaths from 590,068 pesos to 3.7 million pesos.

The article applies to all people, with or without insurance, if they cause someone's death, so it is important that you make sure that you have adequate third party liability limits on any policy you buy. This would include: Mexican Auto Insurance, Mexican Watercraft Insurance and Mexican Homeowners Insurance.

It has been suggested that this could cost Mexicans buying auto insurance in Mexico could be 200 and 500 pesos per year, representing a small increase in premiums. It has yet to be seen if this will have any impact on Mexican tourist auto insurance.

Based on US$ / MX Pesos Conversion rate of 12.50
Compensatory Calculations MX Pesso US$
Old 590,068 47,205
New 3,700,000 296,000

Based on this change, we strongly advise against buying liability limit on any Mexican Insurance policy you buy of less than $300,000 and due to the potential that more than 1 more person is killed in in an accident, we strongly suggest considering buying $500,000 limits.



What can happen if you don't get a Mexican Temporary Vehicle Import Permit (TVIP)!

Here is a sad, frustrating and confusing situation in which a fellow drove his motorcycle into Mexico without getting a Temporary Vehicle Import Permit.

Everything went fine for 5 months while there were not problems. Then he had an accident! Everything went downhill from there!

Not only was his bike damaged but he was hospitalized. Hope he had travel health insurance. Hope he had Mexican Auto Insurance in case there are any liabilities arising from his accident. On top of all that, the police have impounded his bike so he can't see his bike. He can't repair his bike etc until he gets an import permit!

Click this link to see his post.