MEXICO Law and Practice Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
Practical Challenges Disputes may arise from differences between Mexi- can local policies and foreign master policies, includ- ing their terms, limits and exclusions, or as to which insurer or reinsurer bears a particular layer of loss. Cross-border litigation also increases costs through international service, evidence gathering, translations, apostilles and, where applicable, proof of foreign law. 2.4 Anti-Suit Injunctions Exclusive Jurisdiction Clauses Mexican law does not generally recognise anti-suit injunctions as a mechanism for restraining a party from commencing or continuing proceedings before anoth- er court. Where proceedings are brought in breach of a valid exclusive jurisdiction clause, the defend- ant must ordinarily challenge the court’s jurisdiction through the applicable procedural mechanisms. In direct insurance, this issue is further conditioned by Article 277 of the LISF, under which any agreement restricting the claimant’s statutory choice of territo- rial jurisdiction is void. Exclusive jurisdiction clauses therefore have limited effectiveness in standard insur- ance policies. Arbitration Clauses In commercial arbitration generally, where proceed- ings are commenced before a Mexican court despite a valid arbitration agreement, Article 1424 of the Com- mercial Code provides for referral to arbitration at a party’s request, unless the agreement is null, ineffec- tive or incapable of being performed. In direct insurance, however, a preliminary issue is whether the arbitration agreement can validly be invoked against the policyholder. Mexican insurance regulation treats arbitration in certain areas as an option available to the insured rather than as a com- pulsory substitute for judicial proceedings. For exam- ple, in disputes concerning pre-existing conditions in medical expenses, accident and health insurance, the Circular Única de Seguros y Fianzas (CUSF), Mexico’s consolidated insurance and surety regulatory circular expressly requires policies to provide the insured with the option of independent medical arbitration.
Arbitration clauses are of considerably greater prac- tical importance in reinsurance, where agreements between sophisticated commercial parties are gen- erally subject to Mexico’s ordinary commercial arbi- tration regime. 2.5 AI-Related Dispute Resolution and Jurisdiction Current Position Mexican courts have not yet developed specific juris- diction or choice-of-law rules for disputes involving AI. Existing rules on jurisdiction, contractual choice of law, civil liability, data protection and private inter- national law therefore continue to apply, subject to mandatory Mexican law and public policy. AI may nevertheless complicate traditional connecting factors where systems are developed, operated and supplied with data in different jurisdictions. Practical Challenges From an insurance perspective, AI-related losses may engage cyber, professional liability, D&O or general liability coverage. Cross-border evidence may also require access to training data, system logs and infor- mation held by foreign technology providers. 3. Arbitration in Insurance Disputes 3.1 Recognition of Arbitration Clauses Direct Insurance In direct insurance, arbitration is generally treated as an alternative dispute resolution mechanism rather than as a means of compulsorily excluding the poli- cyholder’s access to the courts. Mexican insurance regulation contains several claimant-protective provi- sions preserving the right to pursue judicial remedies. Notably, for disputes concerning pre-existing condi- tions in health and medical expenses insurance, the CUSF expressly requires policies to offer arbitration as an option of the insured, rather than as a manda- tory procedure. Arbitration may also be agreed through CONDUSEF once a dispute has arisen, but this similarly requires the parties’ agreement. Accordingly, particular cau- tion should be exercised before treating a pre-dispute
179 I NSURANCE L I T IGATI O N 2026
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