As always, it is a pleasure to have the opportunity to chat with my good neighbor and of course, help him with his insurance needs here in Baja. Yesterday he asked about the recent adopted amendments made to the Federal Labor Law in Mexico, which requires all insurance companies in the country to increase the sum of Civil Liability on all policies.

The new law requires an amount of up to $3,000.000 MN ($200,000 USD) liability coverage on all auto insurance policies issued in Mexico.

This of course, will have an impact of an increase of the overall cost of your current policy.  Fortunately, the amount of the increased cost is minimal, only a $35.00 USD increase in your policy will be assessed.

This is very inexpensive considering the amount of the added liability to your current policy. In many ways this is an outstanding benefit to your current coverage, for the amount which determined the amount of compensation change considerably.

And for those of you technically curious, the legal clause that determines which determines the amount payable in the event of Tort death and injury, is Article 34 of the penal code of the State of Baja California, which uses as a benchmark for determining the amount of compensation for material damage Article 502 of the Labor Law, which provides for compensation for death from 730 to 5000 days of salary ,after the reform adopted on November 13, 2012.  (Http://


ARTICLE 34 – Rules for setting the compensation for material damage. – The repair shall be determined by the judges, according to the damage it must be repaired according to the evidence collected in the process, or the respective incident, but the economic capacity must only be taken into account for moral reparation. In case of injury and homicide, in the absence of specific evidence regarding the harm actually caused, the judges shall base the tabulation under federal labor law to these cases and the legal minimum wage in the region, this provision shall apply even when the victim is a minor, is incapacitated or not do paid work.

FEDERAL LABOR LAW. (As amended in December 2012)

Article 502. – In case of death of the employee, the compensation due to persons referred to in the preceding article shall be the amount equal to five thousand days of salary, without deducting the worker compensation received during the time he was subjected to temporary disability scheme.

Taking all of this into account, we recommend that you take these considerations into account when renewing, amending or opening a new policy here in Mexico.  It is always our policy to bring you the most current information on any changes made to legislation regarding your insurance requirements during your stay here in Mexico.  If you have any questions or concerns, please feel free to contact our office for further assistance or answers to any questions you many have.

Again, it is always a pleasure to serve you with any of your insurance needs here in Baja.