Fwd: Mexico Insurance Alert: Radical Change to Mexico Liability Laws/E&O Exposure

[kasugie]

For what it's worth, I received the following notice from my former auto insurance broker MEXPRO. Given I no longer have a car here, the changes in liability laws don't affect me.

---------------------------- Mensaje original --------------------------

Mexico Insurance February 2013 Announcement


To view this email online, paste this link into your browser:
http://e2.ma/message/otxcf/wfouyg
___________________________________

Dear Customer,

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 LIMITS, 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 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 US 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 US 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.


Sincerely,

The Mexico Insurance Professionals
www.Mexpro.com [http://www.mexpro.com/]
www.iigins.com [http://www.iigins.com/]
En Espa??ol [http://www.mexpro.com/mexico/index_sp.html?&lang=sp]

[doncoulter]

Thanks for posting this, Kasugie. But I'm having trouble with the math.

The letter says that the limit for a fatality "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)." The minimum wage, of course, varies in different parts of the country; I don't recall what it is in our zone, but it's highest in Zone A, at about 65 pesos per day. Multiple that by 5,000 days and you get 325,000 pesos. At the current exchange rate of about 12.6 pesos per dollar, that's equal to about US$25,800--far below the quoted figure of US$300,000.

I must be missing something here. But what?

Don

[The Duck]

Don - a good editor never rests!


As we are not in one of the major metro areas [Area A's] then we are in Area B so it is, according to
Mexico Minimum Wage January 2013 .... 61.38 in GTO [Area B]

Going to the website you'll find lots of useful info such as:
MINIMUM WAGES ... GEOGRAPHICAL AREA -- A--.....-- B -- ... Daily pesos
Generales: 64.76 61.38
Profesionales
1 Masonry Officer 94.37 89.46
2 Pharmacies and drugstores, salesclerk 82.13 77.91
3 Buld?zer y/o traxcavo, operador(a) de 99.42 94.07
4 Cashier of cash register 83.72 79.60
5 Typesetter, official 89.12 84.39
6 Bartender 85.67 81.18
7 Carpenter manufacture and repair of furniture, official 92.64 87.67
8 Chef, major in restaurants, taverns and other establishments
preparing and selling food 95.75 90.66
9 Mattresses, officer in making and repairing 86.62 82.28
10 Placement of mosaics and tiles, official 92.24 87.45
11 Construction of buildings and houses, plasterer 87.32 82.79
12 Cutter in workshops and factories manufacturing shoes, official 84.75 80.48
13 Sewing in garment factories or workshops 83.58 79.38
14 Sewing in making clothes at home 86.07 81.53
15 Chauffeur Car parking attendant, valet parking 87.99 83.27
16 Truck driver in general 96.58 91.63
17 Cargo van driver 93.53 88.49
18 Operator of Vehicles with crane 89.52 84.95
19 Dredge, operator 100.45 95.12
20 Cabinetmaker in making and repairing furniture, official 94.15 89.13
21 Electrician installer and repairer of electrical installations, official 92.24 87.45
22 Electrician in the repair of cars and trucks, official 93.26 88.22
23 Repairing electrical motors and / or generators in service workshops, official 89.52 84.95
24 Employee gondola, shelf or section in supermarkets 81.86 77.22
25 Warehouse manager 85.18 80.75
26 Nursing, Practical help 87.99 83.27
27 Hardware and ironmongery stores, salesclerk 87.10 82.44
28 Stoker boilers 90.22 85.36
29 Gas station, officer 83.58 79.38
30 Blacksmithing Officer 90.91 86.05
31 Tinsmith in repairing cars and trucks, official 92.64 87.67
32 Silversmith-jeweler officer 87.99 83.27
33 Silversmith-jeweler at home work, official 91.67 86.96
34 Linotypist official 97.85 92.97
35 Lubricator of cars, trucks and other motor vehicles 84.34 79.76
36 Private primary school teacher 99.75 94.43
37 Poultry farm manager 80.82 76.72
38 Agricultural machinery operator 94.91 90.11
39 Woodworking machines in general, official operator 90.22 85.36
40 Mechanical repair of automobiles and trucks, official 97.85 92.97
41 Editor in shoe shops and factories, official 84.75 80.48
42 Hair stilyst and manicurist 87.99 83.27
43 Air pistol driller 93.26 88.22
44 Dyer of cars and trucks, official 90.91 86.05
45 Dyer of houses, buildings and constructions in general, official 90.22 85.36
46 Ironing in dry cleaning, laundry and similar establishments 83.72 79.60
47 Plumber in health facilities, official 90.41 85.72
48 Multicolor offset press, operator 94.37 89.46
49 Printing machine, official 87.99 83.27
50 Radio technician repairing electrical and electronic, official 94.15 89.13
51 Maid in hotels, motels and other lodging establishments 81.86 77.22
52 Stores of auto and truck parts, sallesclerk 85.18 80.75
53 Repair of electrical household appliances, official 89.12 84.39
54 Reporter in printed newspapers 194.01 183.61
55 Graphic reporter in printed newspapers 194.01 183.61
56 Baker or pastry cooker 94.37 89.46
57 Tailoring in home work, official 94.91 90.11
58 Secretary auxiliar 97.66 92.57
59 Welder with torch or electric arc 93.26 88.22
60 Butcher and / or butcher sallesclerk 87.99 83.27
61 Auto upholsterer or car clothes officer 89.52 84.95
62 Upholstery furniture repair shop, Officer 89.52 84.95
63 Social work, technical 106.75 101.11
64 Vaquero machine milker 81.86 77.22
65 Watchman 83.58 79.38
66 Sallesclerk of household appliances 86.07 81.53
67 Cobbler in shoe repair shops, official 84.75 80.48

[philyrossy]

So, if you are in an accident with a reporter or lawyer, what do you think would be the liability versus one with a maid?