Freight automotive insurance

Insurance coverage for automotive customers

Vehicles incurring any total or partial loss and/or damage while in the care, control and custody of FERROMEX will be classified as CA (Commercially Acceptable or AAR severity codes 1 and 2) or CNA (Commercially Not Acceptable or AAR severity codes 3, 4 and 5) on comparing the Inspection Reports at origin and destination. Customer will determine the technical classification of the damage, providing a written report prepared by Customer's Quality department.

FERROMEX accepts claims for total or partial loss and/or damage incurred by vehicles during transportation, for up to the maximum amount established in this clause, submitted by Customer in writing or electronically up to 180 calendar days following delivery (or partial delivery, as such is the case), or following the date the consignee is notified of the total or partial loss and/or damage, accordingly. Claims will be processed according to the claims process described herein in addition to that indicated in this coverage.

FERROMEX accepts claims for total or partial losses or damages including the logistics cost (where applicable) up to $4,500,000.00 MXN (four million five hundred thousand Mexican pesos 00/100) per train, defined as a minimum of 75 automotive platforms or the platform proportion traveling as part of a single train from the same origin to the same destination. A deductible of 7% (seven percent) will be applied in all cases to the total claim amount, regardless of the type of event. The base amount for the application of the deductible will be the total claim amount.

FERROMEX shall not, under any circumstance, be held liable for payment of damages or claims under $18,000.00 MXN (eighteen thousand Mexican pesos 00/100).

The coverage FERROMEX offers does not prevent Customer's insurer from exercising their rights to subrogation for the amount over and above the liability held by FERROMEX established herein. No provision contained in this coverage shall be considered or construed as affecting the rights to subrogation of the insurer.

Repairs of any total or partial loss and/or damage imputable to the transportation by rail will be based on the load sheet signed by the representatives for FERROMEX and for Customer. Customer will use the inspection reports on the loading and unloading of vehicles to prepare the Load Sheets. The repair amount will be determined by the dealer authorized by Customer and the photographic evidence will be provided by the inspection firm or representative that FERROMEX designates for this purpose.

FERROMEX shall not, under any circumstance, be held liable for any loss and/or damage not imputable to the transportation by rail according to the inspection reports and load sheets.

Liability Limitations: FERROMEX shall not be held liable for any loss, damage or spoilage to Freight in the following cases, to include without limitation:

  • Loss and/or damage to Vehicles or Parts when these are not in the possession, care or custody of FERROMEX and/or its authorized subcontractors.
  • Acts of god or force majeure. Acts of authority.
  • Organized assault, uprisings and/or acts of terrorism.
  • In the case of Parts, errors attributed to the stacking and/or durability of the Shipment packing.
  • In the case of Vehicles, manufacturing defects and freezing or leaking of fluids.
  • Special, consequential, indirect, undefined or punitive damages.
  • Negligence, acts or omissions on the part of Customer or their authorized agents or representatives.
  • In the case of Parts, FERROMEX shall not be held liable for goods lost that are not placed inside container cars with seals intact, unless noted on the inspection report.

The Parties agree the liabilities of each Party in terms of Freight claims will be defined and detailed in the Claims Process.


Claims Process


The Parties agree the following provisions will be binding for FERROMEX and Customer as part of this coverage:

1. Liabilities and Limitations:

The liability of FERROMEX on any theft, loss and/or damage, total or partial, will be determined comparing the results of the inspections conducted when shipments are received and delivered.

Claims for losses or damages to Vehicles must be submitted to FERROMEX electronically or in writing within six (6) months of delivery in the case of Import Routes or Ports as Destination, and six (6) months following delivery at the Interchange Point in the case of Export Routes by land border, or in the case of shortfalls or losses, the date delivery can reasonably be expected.

FERROMEX will inspect the Vehicles when these are received at the Point of Origin or Interchange and on delivery at the Point of Destination, based on the following parameters:

  • The purpose of the inspection is to document the condition in which the Vehicles are received at the Point of Origin or Interchange and again when the Vehicles are delivered at the Point of Destination.
  • FERROMEX will cover the cost of its own inspections.
  • Inspections may be conducted jointly by the inspection firm designated by FERROMEX and a third party designated by Customer at the Points of Origin or Destination.
  • Inspections will be documented and signed by the inspection firm designated by FERROMEX and a third party designated by Customer at the Points of Origin or Destination.
  • FERROMEX is responsible for managing the information from its inspections.

FERROMEX will not be held liable for any loss and/or damage to Vehicles in the following cases:

  • When the damages result from any of the causes given in article 51 of the Mexican Railroad Service Regulatory Law.
  • Faults inherent to the Vehicles or losses and/or damages due to the improper securing of the Vehicles inside the Cars.

Customer will be solely responsible for determining the degree of partial or total loss and/or damage to the Vehicles:

  1. Any Vehicle that incurs any total or partial loss and/or damage that can be repaired to be sold as a New Vehicle will be classified as "Class 1 (one)". FERROMEX will cover any costs associated with the repair of the Vehicle according to this Coverage.
  2. Any Vehicle that incurs any partial or total loss and/or damage that cannot be repaired to be sold as a New Vehicle will be classified as "Class 2 (two)". For Imported Vehicles or Vehicles that can be sold in Mexico, FERROMEX will have the option to purchase the damaged Vehicle at the sell price to the dealer. For Export Vehicles or Vehicles that cannot be sold in Mexico, FERROMEX will cover any repair costs for the Vehicle without the option to purchase the damaged vehicle.
  3. Any Vehicle that incurs damage that cannot be repaired will be classified as "Class 3 (three)". Class 3 or "total loss" are damages that are not reparable and involve severe damages to the bodywork (panels) and/or any other damages affecting the marketability, safety, durability or reliability of the Vehicle. FERROMEX will pay the total value of the Vehicle at the sell price to the dealer set by Customer, plus the cost for the destruction of the Vehicle, less 15% (fifteen percent) of the recovery or salvage value.

Any damage classified as AAR severity code 1 or 2 will be considered not imputable to FERROMEX.

2. Documentation:

The documents required by the FERROMEX Risk Management Department, available via the preferred means of Customer, must be provided to support claims. FERROMEX may request a physical review for claims that cannot be followed on Customer's system.

The following documents are required for claims:

  • Formal Claim Letter on company letterhead, detailing: the subject of the claim, the amount, a detailed description, Vehicle Identification Number (VIN), multi-level number, and also the name and signature of the person submitting the claim.
  • Spreadsheet file indicating: route, date of the Car waybill, shipment arrival date, repair invoice number, vehicle model, severity code, repair amount, full description of the damage, reconciliation of inspection reports at origin and destination, and digital images of the loss and/or damage.
  • Copy of the inspections at origin and destination.
  • Copy of the Export Invoice or support documentation for the current price, issued by Customer.
  • Copy of the Repair Expense receipts for damages and/or parts missing. For claims submitted from the USA or Canada, the information for repairs described in the list of repaired damages on Customer's system will be made available.
  • Summary of expenses incurred by Customer, such as for administrative processing, taxes associated with repairs, and lost sales when the damage to the vehicle classifies it as "Class 2 (two)".

3. Payment of Transportation Rates:

Customer will settle in full all Rates prior to submitting any claim.

4. Payment of Claims:

FERROMEX will accept claims for any partial or total loss and/or damage incurred to the Vehicles, submitted by Customer in writing or electronically within 6 (six) months following delivery (or partial delivery, as such is the case) in the case of Import Routes or Ports as Destination, and six (6) months following delivery at the Interchange Point in the case of Export Routes by land border.

FERROMEX will have 30 calendar days to accept, request changes or deny a claim, providing the reason and evidence to support the change or denial, accordingly, via the mechanism Customer designates.

Customer will then have 15 calendar days to provide additional information or change the claim based on the evidence presented by FERROMEX, and FERROMEX will review the information and provide any support necessary to accept or deny the claim.

FERROMEX will then have 15 calendar days more to accept or deny a claim, providing the reason and evidence to support a denial. If FERROMEX does not deliver response within this time, the claim will be deemed accepted and the corresponding payment made.