The Mexican government made changes to the Labor Law in 2012, which included a clause that increased the government established limits for the value of a human life, in case of accidental death, with the changes taking effect on February 4, 2013. A good friend posted the following information and table of values on Mexconnect today:
“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.”
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Insurance companies are allowing clients to increase their Liability Limits on their auto policies to cover the new liabilities for modest premium increases. It is worth noting that Yucatan has especially high liability limits, requiring additional riders to our policies for most people living here.
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© Steven M. Fry