On February 17, 2021, the First Chamber of the Mexican Supreme Court of Justice (“ SCJN ”) issued a judicial precedent pursuant to which it determined that notwithstanding the insurance premium is paid, in case this is done after the 30-day grace period , the insurance contract terminates, even if the insurer received the premium.
The rationale of the First Chamber of the SCJN is based on the assumption that the insurance contract is bilateral, onerous and random, and is perfected at the moment in which the contracting party becomes aware of the acceptance of the offer made by the insurer, and additionally, according to the Insurance Contract Law (the “ Law ”), from the due date for payment of the premium, the contracting party has a grace period of 30 calendar days to pay the premium.