beddows
Junior Nomad
Posts: 41
Registered: 9-30-2003
Location: Vancouver, Canada
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IMPORTANT: Change in Mexican liability laws
IMPORTANT !!!! New liability amounts. Mexico has just raided the max liability amounts from around 50K dollars to 300K dollars. Some insurance
companies are extending coverage for existing policies, others are not. Check with yours.
From Jim Labelle
Subject: Mexico Insurance Alert: Radical Change to Mexico Liability Laws
We are writing to inform you of a radical change to Mexico Liability Law.
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.
If you have any questions about this new law please feel free to contact us
today at 888-467-4639. We cannot stress enough the importance of
understanding these new liability limits and the need for higher limits
when purchasing Mexico Auto Insurance in the future.
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gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
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This is the hypothetical maximum liabilty in Mexico (mexican courts) whereas a US injured person could sue a US driver foro an accident in Mexico for
wahtever crazy amount they imagine- i US courts becuase both are parties there) -it doesn't mean it is valid or will be successful.
I would ignore these types of crazy emails and drive carefully.
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durrelllrobert
Elite Nomad
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
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Mood: thriving in Baja
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I don't think the $300k is in US dollars:
5,000 days x 66.66 pesos per day = 333,300 pesos
divided by to days exchange of 12.6 pesos / $US = $26,452 US
Bob Durrell
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cabobaja
Nomad
Posts: 362
Registered: 9-19-2006
Location: South \"O\", Elias Calles, BCS
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Mood: Smiling
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What does Bajabound say??
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DENNIS
Platinum Nomad
Posts: 29510
Registered: 9-2-2006
Location: Punta Banda
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| Quote: | Originally posted by cabobaja
What does Bajabound say?? |
"Buy more insurance?" 
Jes kiddin', Geoff.
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sancho
Ultra Nomad
Posts: 2524
Registered: 10-6-2004
Location: OC So Cal
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| Quote: | Originally posted by beddows
negligent fatality in Mexico the Mexican Government to 5,000 days multiplied by the local Mexico minimum
wage (up to approximately $ 300,000 US Dollars total damages .
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Thanks for the info, Lewis & Lewis who I've had in the past,
have for yrs. had a STANDARD $300, 000 dls CSL libility,
others may have a scale from $50k - $500,000, the new info
seems to suggest the new $300,000 is for a specific
death libility, not necessarily property damage? It
would be muy malo to come up short on the coverage
one has in event of an occurance
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woody with a view
PITA Nomad
Posts: 15939
Registered: 11-8-2004
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Mood: Everchangin'
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shouldn't our/your insurance co have to contact every one of their customers with a policy to explain this?
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Bob H
Elite Nomad
Posts: 5867
Registered: 8-19-2003
Location: San Diego
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One should never carry less than $300,000 liability coverage. Look at what Lewis and Lewis has as their standard policy offering...
http://www.mexicanautoinsurance.com/
and, you can increase the liability coverage to $500,000 for just $49 for an entire year !!
[Edited on 2-2-2013 by Bob H]
The SAME boiling water that softens the potato hardens the egg. It's about what you are made of NOT the circumstance.
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MEXAUTO
Newbie
Posts: 1
Registered: 2-5-2013
Location: SANTA MONICA, CA
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Financial Responsibiltiy for death due to accident
From Jim Lewis, Jr. MexicanAutoInsurance.com
Minimum wage in Mexico is set by occupation and geographical area.
The Maximum number of days when calculating a minimum compensation for a deceased person due to accident is set by each Mexican State.
Some Mexican States have increased the maximum number of days to 5000 when calculating a minimum compensation for a deceased person due to accident.
In some Mexican States, like Jalisco, the Court determines the financial restitution for a deceased person due to accident on a case by case basis.
This is all in preparation for 2016 when Mexico intends to handle these cases by trial.
Today, a death by accident of a person who is a Reporter by occupation making the minimum daily wage of 194.01 Pesos in Geographical Area A in a State
that has a 5000 day minimum may generate 970,050 Pesos. The at fault party could then be responsible to make immediate financial restitution of
$76,082.35 USD for the death to the estate and/or family of the deceased plus pay for the repair or actual cash value of the damaged vehicle and any
other contributed damage/liability charges.
If a person survives an accident but can no longer support themself, the financial responsibility has usually been increased by 50%.
The main thing is the amount of Liability Insurance stated on your Mexican Auto Insurance contract.
Jim
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BajaGeoff
Super Nomad
Posts: 1727
Registered: 1-11-2006
Location: San Diego and Campo Lopez
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Mood: Heading To Baja!!!
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Hey Nomads,
We have been looking in to this and have received some conflicting information about the changes in liability limits on a federal/state level. Once we
confirm everything, we will be issuing a statement, contacting all of our clients and I will post up here as well.
The bottom line is that the potential for exposure has increased considerably in the event of an auto accident fatality where you are at fault. The
numbers we have seen are the maximum amount you could be held liable for - a "worst case scenario" so to speak.
In our almost 20 years of business, Baja Bound has never had a liability claim exceed 50K. This recent change obviously is going to impact that. My
suggestion is to analyze the Mexican coverage that you typically buy and see if you are comfortable with the limits based upon this new potential for
exposure.
I hope to have more information very soon and will post an update as soon as possible.
@durrellrobert - The limits are in fact dollar amounts and not pesos.
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sancho
Ultra Nomad
Posts: 2524
Registered: 10-6-2004
Location: OC So Cal
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| Quote: | Originally posted by BajaGeoff
We have been looking in to this and have received some conflicting information about the changes in liability limits on a federal/state level. The
bottom line is that the potential for exposure has increased considerably in the event of an auto accident fatality where you are at fault. The
numbers we have seen are the maximum amount you could be held liable for - a "worst case scenario" so to speak.
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Conflicting info from the Mex Govt? Never heard of such a thing, so looks like this story has some legs, I've never
carried the minimum liaibilty, I always approach it with
the worst case scenario in mind. Geoff, is there EVER
an occurance where the Gringo is not at fault? I think
that would be rare
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BajaGeoff
Super Nomad
Posts: 1727
Registered: 1-11-2006
Location: San Diego and Campo Lopez
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Mood: Heading To Baja!!!
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Hey Sancho,
Obviously I can't speak for everyone, but yes, there are absolutely times when the Gringo is not found to be at fault. It happened to a friend of mine
when we were coming back from the NORRA rally a few years back.
Our caravan had just gotten on the toll road north of Ensenada and the last vehicle was about a half mile back. Out of nowhere, a local darted out
into the middle of the road in front of my friend's truck, sending him flying. Apparently the local had to go to the bathroom, so they had pulled
their vehicle off to the side of the road. The local did not want to go to the bathroom in front of his family, so he decided to run to the center
divider without looking to see if there was any traffic coming. Long story short, the local was found to be at fault and was liable for the damage to
my friends vehicle, his legal fees and his own medical bills. Thankfully, the local did survive the incident.
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DavidE
Ultra Nomad
Posts: 3814
Registered: 12-1-2003
Location: Baja California México
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Mood: 'At home we demand facts and get them. In Mexico one subsists on rumor and never demands anything.' Charles Flandrau,
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Trying to COLLECT money for a serious accident is a bit different. Sort of like trying to get uranium hexafluoride out of a cactus. It used to be
97.7% NO years ago but I don't know what the percentage of insured Mexican drivers is today.
A Lot To See And A Lot To Do
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oladulce
Super Nomad
Posts: 1625
Registered: 5-30-2005
Location: bcs
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An article on the YucaLandia site with more info
YucaLandia
From the article:
"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.”
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sancho
Ultra Nomad
Posts: 2524
Registered: 10-6-2004
Location: OC So Cal
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oladulce, Interesting graph, BCS $335,000 total,
BC Norte $143,000, rarely anything in Mex is
ever CONSISTANT, at least from a Gringo perspective
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