Like in other jurisdictions, under Mexican law, claims are subject to a limitation period, and when claimants fail to timely submit their claim, their right to compensation expires. In insurance, the general limitation period applicable to claims based on an insurance contract is two years, which will start running on the date the insured or beneficiary became aware of their right to claim.

The date in which the claimant became aware of their right to claim may change on a case-by-case basis. It could be the date of the loss, the date in which the insured became aware of the loss, or in the case of beneficiaries, the date in which they found that they had a right to claim under the relevant policy.

An exception to the two-year rule is the case of life insurance, for which the applicable limitation period is five years, also from the date the claimant became aware of their right to claim.

Liability

Under Mexican law, victims are entitled to claim directly to the liability insurers of the party that caused the damages without the need of claiming directly to the insured; however, the claim made directly to the insurers is still subject to the rules applicable to the liability claim, including limitation periods.

In Mexico liability is regulated by the law of each state; therefore, there are thirty-three different local regimes and one more regime applicable to Federal jurisdiction. Notwithstanding the foregoing, the general rule is that the limitation period applicable to liability claims is two years for non-contractual claims.

The staring point for the two-year limitation period may vary depending on the nature of the damages. In the case of damages to objects, it will almost certainly be from the date the damages were caused. In the case of injury or non-physical damages, the starting point may be date in which the extent of the damages became evident to the claimant.

Reinsurance

Under Mexican law there are no provisions expressly regulating reinsurance contracts; therefore, the applicable rules must be sought elsewhere in the law. Regarding limitation periods, the rule is that when there is no specific period expressly provided for in the law, actions become time bared after ten years from the date the relevant obligation became due.

Since reinsurance contracts do not have a specific regulation regarding limitation periods, we must apply the general rule and consider that the limitation period applicable to actions between reinsurers and cedants regarding the reinsurance contract have a ten-year limitation period.

Interrupting time limits

Interrupting time limits under Mexican law means that the applicable period is re-started on the date of the interruption, and the count commences at day one again. Under Mexican law time limits of all types can be interrupted by submitting a court claim or complaint or through an acknowledgement of the credit by the debtor. Additionally, insurance claims can be by the appointment of adjusters or by submitting a claim with the Mexican insurance ombudsman.

Notwithstanding the foregoing, Mexican courts have issued case law establishing that, when concerned with limitation periods, the principle of numerus clausus does not apply; therefore, time limits may be interrupted in more ways than those expressly provided by law. For instance, a limitation period may be interrupted with the submission of an extrajudicial claim. The limitation period should be considered interrupted when the claimant carries out actions that notify the counterparty of their interest in maintaining their rights, provided those actions took place before the claim became time barred.

Extensions

Mexican law does not allow for extensions of the limitation period the way other jurisdictions do. In the case of civil claims, it is possible for the defendant to waive to the period that has expired but the waiver needs to meet certain formalities.

The law does not allow for the waiver of limitation period in the case of commercial claims, such as claims under commercial contracts or a claim by an insured to their insurer under an insurance contract.

Conclusion

Insurance professionals and their counsel managing claims in Mexico will benefit from an understanding of the country’s rules and laws pertaining to the limitation period for claims. Such knowledge can go a long way in most successfully and efficiently litigating a claim.