{"id":129636,"date":"2026-03-06T13:46:13","date_gmt":"2026-03-06T13:46:13","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=129636"},"modified":"2026-03-06T13:46:13","modified_gmt":"2026-03-06T13:46:13","slug":"mexico-insurance-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/mexico-insurance-disputes\/","title":{"rendered":"Mexico: Insurance Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-129636","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-disputes","jurisdictions-mexico"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">OCAMPO 1890, S. C.<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/02\/LOGO_OCAMPO_SLOGAN.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">OCAMPO 1890, S. C.<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/02\/LOGO_OCAMPO_SLOGAN.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance Disputes laws and regulations applicable in Mexico<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What mechanism do insurance policies usually provide for resolution of disputes between the insurer and policyholder?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexico, Article 277 of the Insurance and Surety Institutions Act (LISF) gives the insured the right to choose the jurisdiction in the event of a claim against the insurer. The condition established by the law is that there must be an office of the National Commission for the Protection and Defence of Financial Services Users (CONDUSEF) in that location, which makes virtually any judge in the country competent.<\/p>\n<p>The foregoing is non-negotiable. For this reason, most insurance policies issued in Mexico contain these provisions, and only a few, by way of exception, contain clauses with alternative dispute resolution mechanisms (arbitration).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a protocol governing pre-action conduct for insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. It was declared unconstitutional in 1997.<\/p>\n<p>However, the insured party may first approach CONDUSEF to initiate a conciliation procedure with the insurer.<\/p>\n<p>The conciliation procedure is mandatory for the insurer. In other words, it is obliged to attend all hearings and submit the required reports. However, if the parties fail to reach a settlement, they have the option of appointing CONDUSEF as arbitrator or safeguarding the rights of the parties so that they can assert their rights as they see fit.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are local courts adept at handling complex insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. In Mexico, there are no courts specialising in insurance. Therefore, the courts that resolve insurance cases are the same ones that resolve commercial matters in general.<\/p>\n<p>Given the above, there is a need to be close to the court hearing the case in order to be able to present the technical issues related to insurance and reinsurance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution mandatory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. It is optional.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are successful policyholders entitled to recover costs of insurance disputes from insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Policy holders can be awarded with the costs and fees of trial.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an appeal process for court decisions and arbitral awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Legal proceedings:<\/strong><\/p>\n<p>Insurance cases are mercantile cases. Therefore, they should be deliver to court in the \u201cOral Via\u201d where no appeal is allowed.<\/p>\n<p>It is important to note that Mexico is moving towards oral proceedings (formerly all proceedings are written), in which appeals are not allowed. However, some &#8216;ordinary&#8217; proceedings still exist in which appeals are possible.<\/p>\n<p>It is important to note that in Mexico, there is the Amparo trial, which is a means of constitutional challenge that reviews whether the acts issued by the judicial authority (judgments) have been issued in accordance with the constitution and human rights. Therefore, the Amparo is part of the trial.<\/p>\n<p><strong>Arbitration proceedings:<\/strong><\/p>\n<p>There is no appeal. However, the Amparo may remain as a means of defence in the event that the arbitration has been conducted in violation of the due process rights (right to offer evidence or produce arguments, for example) of one of the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How much information is the policyholder required to disclose to the insurer? Does the duty of disclosure end at inception of the policy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Every insurance contract is governed by the contractual principle of utmost good faith, which mandates that the insured party disclose all information requested by the insurer, or that it may alter the essence of the insured risk. It is pertinent to note that the insurer bears the obligation to be both specific and exhaustive regarding the information sought from the insured.<\/p>\n<p>Once the insurance contract has been duly executed and perfected, the insured is under no further obligation to provide additional information, unless the risk has essentially changed to be aggravated. In the event that the risk is aggravated, the insured has the obligation to notify the insurer of the changes of the circumstances, so the insurer can either charge for an extra premium or adjust or cancel the insurance contract.<\/p>\n<p>Nevertheless, it must be emphasized that should the insurer ascertain or discover that the insured provided false statements or misrepresented the information supplied, the insurer shall be entitled to rescind the insurance contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available for breach of the duty of disclosure, and is the policyholder\u2019s state of mind at the time of providing the information relevant?\u202f\u202f\u202f\u202f\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to the provisions of Article 47 of the Insurance Contract Law, the moment the insurer becomes aware or discovers that the insured has provided false information or misrepresented the facts, the insurer may rescind the insurance contract. Such rescission must be formally notified to the insured within thirty (30) days following the date on which the insurer gained knowledge of the omission or the inaccurate statement.<\/p>\n<p>Furthermore, an individual\u2019s mental state is a material factor in the execution of any contract. Depending on the specific circumstances of a given case, an individual&#8217;s legal capacity (the capacity to contract) may be limited or restricted. In any event, a judicial decree or court order is strictly required to legally establish that a person&#8217;s legal capacity has been limited or restricted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are certain types of provisions prohibited in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Unfair terms are prohibited, and CONDUSEF determines which terms are unfair, which are essentially those that could mislead the insured in any way.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is a duty of utmost good faith implied in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principle of utmost good faith in insurance contracts continues to be the guiding principle in our legal system, particularly in Articles 8, 9 and 10 of the Insurance Contract Act (LSCS), which establish the contracting party&#8217;s obligation to disclose all necessary information so that the insurer is fully aware of the risk it is proposing to insure.<\/p>\n<p>Notwithstanding the above, our courts have been increasingly strict in interpreting the principle of utmost good faith in insurance contracts in two ways: first, they have established that it is limited to the questionnaires that the insurer asks the policyholder to complete, i.e., the policyholder is not obliged to answer beyond what is in the questionnaires; and secondly, that the insurance contract covers everything unless it is expressly excluded.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do other implied terms arise in consumer insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Single Circular on Insurance and Surety Bonds (CUSF) is the source that, in various provisions, establishes the clauses that must be included in insurance contracts. Essentially, these are mandatory clauses for insurance contracts that are marketed on a large scale.<\/p>\n<p>There are also mandatory clauses for all insurance contracts, such as those relating to jurisdiction, the insured&#8217;s right to request a copy of the policy, the insured&#8217;s right to disagree with the terms of the insurance contract, and the consequences for the insurer for failing to fulfil its obligations in a timely manner.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there limitations on insurers\u2019 right to rely on defences in certain types of compulsory insurance, where the policy is designed to respond to claims by third parties?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. The contract entered into between the contracting party (insured) and the insurer is what will govern the relationship between them, and claims by third parties (victims) will also be affected by that insurance contract, which may also be subject to the law that makes it mandatory. Therefore, insurer can rely on defences derived from the insurance contract or the Law itself.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the usual trigger for cover under insurance policies covering first party losses, or liability claims? Are there limitation periods for the commencement of an action against the insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With regard to civil liability insurance contracts, the trigger is the claim by the insured party who has caused damage to third parties or the claim by the victim directly to the insured party or the insurer.<\/p>\n<p>It is important to note that in Mexico, civil liability proceedings are independent of insurance proceedings. The victim has direct recourse against the insurer.<\/p>\n<p>Direct action against the insurer is subject to a two-year limitation period, which begins to run from the moment the victim becomes aware of the right established in their favour, i.e. when they learn of the existence of the insurance policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which types of loss are typically excluded in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It depends on the type of insurance.<\/p>\n<p>In life insurance, most of the time it involves pre-existing conditions or illnesses that were not disclosed when the application was filled out. Similarly, in medical insurance, when an expressly excluded illness is updated, provided that the insured is aware of said exclusion.<\/p>\n<p>In property and casualty insurance, only what is expressly excluded is not covered, or in cases where the amount of the claim cannot be proven in any way.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts typically construe ambiguity in policy wordings in favour of the insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, any ambiguity or lack of clarity in the text of the policies and in the clauses of any insurance contract shall be interpreted and applied by the courts in favour of the insured party.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a \u2018but for\u2019 or \u2018proximate\u2019 test of causation apply, and how is this applied in wide-area damage scenarios?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexican law and local insurance practice, the prevailing concept is that of Proximate Cause. However, the technical interpretation is closer to Suitable Cause: that which, in the normal course of events, is suitable for producing the harmful result.<\/p>\n<p>But-for test (Conditio sine qua non): In Mexico, this is mainly used as an initial filter to rule out events. If the damage would have occurred anyway without event X, then X is not the cause. However, it is not the final criterion for determining the insurer&#8217;s liability.<\/p>\n<p>Proximate Cause: Defined as the efficient, active, and determining cause that triggers a chain of events leading to damage, without the intervention of a new and independent force.<\/p>\n<p>When a catastrophic event affects an entire region, it becomes difficult to distinguish between the damage caused by the covered risk and the economic loss resulting from the degraded environment (the &#8220;trend clause&#8221;).<\/p>\n<p><strong>The Doctrine of Efficient Cause in Mexico<\/strong><\/p>\n<p>In large-scale disasters (e.g., Hurricane Otis in Acapulco), the application is governed by:<\/p>\n<p><strong>Individualisation of Damage:<\/strong> The insurer must compensate for damage where the covered risk is the direct cause. If a hotel suffers damage due to wind (covered) and a general power outage in the city (causing loss of income), the dispute usually centres on whether the business interruption was caused by the material damage to the property or by the general situation in the area.<\/p>\n<p><strong>Concurrence of Causes:<\/strong> If a covered cause (earthquake) and an excluded cause (hidden defect) concur, Mexican doctrine tends to favour coverage if the efficient cause is the covered one, unless the contract stipulates &#8220;absolute exclusion&#8221; clauses (where if an excluded cause contributes in any measure, payment is denied).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the legal position if loss results from multiple causes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Normally, the probable proximate cause is considered to determine whether a claim under an insurance policy is valid or invalid.<\/p>\n<p>If it is impossible to determine the origin of the loss, the nature of the incident is taken into account and the coverage is analysed on that basis.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available to insurers for breach of policy terms, including minor or unintentional breaches?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Firstly, in the event of omissions or inaccurate statements that presuppose a violation of the principle of utmost good faith, the insurer has the right to terminate the insurance contract by operation of law, which must be done within 30 days of becoming aware of the omissions or inaccurate statements. Termination will also entitle the insurer to deny coverage if the omission or inaccurate statement influenced the occurrence of the loss.<\/p>\n<p>In the event of a material increase in risk, the same applies. That is, if the risk has increased and the insured has not notified the insurer in a timely manner, the insurer may terminate the insurance contract as of right.<\/p>\n<p>Mexican law does not provide for other specific remedies for insurance contracts, such as conditions precedent. The insurer may simply make coverage conditional if the condition precedent does not exist as established in the insurance contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides cover for more than one insured party, does a breach of policy terms by one party invalidate cover for all the policyholders?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It depends on who commits the violation.<\/p>\n<p>If the person who took out the insurance policy was the one who represented everyone and falsely declared the facts that the insurer needed to know in order to assume the risk, then it will affect everyone.<\/p>\n<p>If the contracting party is not responsible for disclosing to the insurer the facts that the latter must know in order to assume the risk, but rather this is the responsibility of each of the insured parties, then the breach will only affect each of the insured parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where insurers decline cover for claims, are policyholders still required to comply with policy conditions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the contract remains in force, the terms and conditions of the policy will prevail for both parties, therefore the general terms and conditions continue to apply. If the contract has been terminated, then it is no longer valid and, consequently, the obligation no longer exists.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is quantum assessed, once entitlement to recover under the policy is established?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It depends on the type of insurance and the coverage purchased. In damage insurance, it will be as established in the insurance policy, either at replacement value or new value; and in the case of civil liability insurance, the quantum is determined based on the value of the items at the time of the accident.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides for reinstatement of damaged property, are pre-existing plans for a change of use relevant to calculation of the recoverable loss?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The insurance contract aims to compensate the insured party, which means that compensation must be based on the values that existed at the time of the loss. Furthermore, the destination of the affected goods must be the same as it was at the time of the loss, so that the insured party does not receive any enrichment at the time of compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">After paying claims, are insurers able to pursue subrogated recoveries against third parties responsible for the loss? How would any such recoveries be distributed as between the insurer and insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. There is a specific provision that once the insurer has paid the insured, it becomes subrogated to the rights of the insured, up to the amount paid. The insurer has the right to claim for itself only up to the amount paid to the insured and no more; and if the loss has been greater, the remainder of the loss (whatever its nature) shall be in favour of the insured.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right to claim damages in the event of late payment by an insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The LISF includes Article 276, which aims to establish penalties and compensation mechanisms for late payment that an insurance institution must pay when it fails to meet its contractual obligations within the legally established deadlines. Its main objectives and components are:<\/p>\n<p>a. Compensation for Non-Compliance: If the insurer fails to pay a claim on time, it is obliged to compensate the creditor by paying default interest and updating the amount owed.<\/p>\n<p>b. Preservation of Value (Updating): Obligations in national currency must be denominated in Investment Units (UDIs) at their value on the date on which the legal payment deadline expired. This ensures that the amount does not lose purchasing power due to inflation while payment is pending.<\/p>\n<p>c. Penalty Interest Rate: In addition to the adjustment, the institution must pay default interest at a rate equal to 1.25 times the cost of attracting term deposits in UDIs published by the Bank of Mexico.<\/p>\n<p>d. Inalienable Rights: The article explicitly states that the creditor&#8217;s rights to these compensations are inalienable. Any agreement that attempts to reduce or eliminate them shall have no legal effect.<\/p>\n<p>e. Automatic enforceability: Entitlement to this compensation arises upon expiry of the legal deadline for payment of the principal obligation, even if the exact amount of the debt has not been settled or determined at that time.<\/p>\n<p>f. Payment Order: In the event that the institution makes partial payments, these shall first be applied to the default interest, then to the adjustment, and finally to the principal (main obligation).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can claims be made against insurance policies taken out by companies which have since become insolvent?\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. There is a specific procedure for filing claims against insurance companies that have been declared bankrupt or insolvent and have therefore been taken over by the regulatory authority.<\/p>\n<p>Claims processes are subject to the validity of the claim, and once this has been established, the company&#8217;s liquidator will determine the priority of the claim in order to also establish the amount to be paid from the insurer&#8217;s reserves and assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are class action or group litigation options available to facilitate bulk insurance claims in the local courts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Class actions in Mexico formally came into being with the constitutional reform of 2010 and its entry into force in 2012, breaking with a legal system that previously only allowed individual litigation. This scheme empowered institutions such as PROFECO and civil associations to defend diffuse and collective rights in key areas such as consumption, the environment and financial services, allowing thousands of citizens affected by the same cause to jointly file lawsuits in federal courts.<\/p>\n<p>Currently, the status of these actions reflects a stage of operational consolidation but with significant procedural challenges. Although media victories have been achieved against airlines, telecommunications companies, and ticket sellers, the system still faces bottlenecks in the enforcement of judgments and the certification of claims. The current focus is shifting towards the digital economy and personal data protection, consolidating itself as the main tool for balancing the power of large corporations and the rights of citizens.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the biggest challenges facing the insurance disputes sector currently in your region?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The biggest challenge in Mexico is definitely the judicial system itself. In 2025, the judicial system underwent a very important change in that judges, magistrates, and ministers are now appointed by popular election, which means there is a risk that they will not necessarily be the most qualified people for the job, but rather those with political influence.<\/p>\n<p>In addition to the above, since 2011, Mexico has reformed its constitution to include human rights, and with this, the interpretation of the law under the &#8220;pro persona&#8221; mechanism has changed all existing paradigms.<\/p>\n<p>In the world of insurance and civil liability, the impact has been enormous. Judges interpreting special laws without insurance expertise and with strictly social motives make insurance litigation strategic, meaning that not just any law firm can handle it.<\/p>\n<p>Specialisation in the subject matter is necessary to ensure that the arguments brought before the courts are appropriate so that the technical essence of the insurance contract remains intact.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do you envisage technology affecting insurance disputes in your jurisdiction in the next 5 years?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The use of artificial intelligence has definitely become increasingly common in judicial proceedings in Mexico. Currently, there is only one legal precedent that allows judges to use artificial intelligence tools, provided that the purpose of such tools is to support the judge in order to simplify their tasks. However, the premise is that artificial intelligence cannot replace the judge and cannot perform fundamental assessment tasks.<\/p>\n<p>Based on the above, the use of technology will be geared towards this end: creating foundations that enable documents and information to be analysed more quickly and efficiently so that judges can administer justice with full knowledge of the facts and apply technology to the law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant trends and developments in insurance disputes within your jurisdiction in recent years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trends and developments in insurance are definitely linked to the interpretation of the law in general in favour of individuals and the exploration of human rights in general.<\/p>\n<p>Since 2011, analysis has begun on &#8220;full compensation for damages&#8221; or &#8220;fair compensation,&#8221; which seeks to ensure that those who suffer damages receive full compensation and not just financial compensation. This issue has had a severe impact on the insurance sector, with unprecedented convictions, especially for issues related to moral damages and life plans, which were not previously compensated.<\/p>\n<p>Another trend is that the insured party is the weaker party in litigation and, therefore, the insurer bears practically the entire burden of proof. This has had a severe impact on the internal processes of insurers, who have had to implement new mechanisms, such as means of delivering documentation to the insured party in order to challenge the exclusions in the insurance contract.<\/p>\n<p>Finally, given that major medical insurance has developed within the context of protecting the insured&#8217;s assets, the courts are currently adopting the criteria that medical insurers actually cover the health of the insured, an issue that will break a paradigm on which this type of insurance industry has been developed in Mexico.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where in your opinion are the biggest growth areas within the insurance disputes sector? \u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Given that the Mexican legal system is not the most suitable for the development of the insurance sector, the area of greatest opportunity lies in arbitration and mediation. However, it is necessary to persuade insurers, reinsurers, brokers and policyholders that alternative dispute resolution methods are much more likely to produce efficient, rapid resolutions that are in line with insurance practices.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3689<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/129636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=129636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}