The State of Mexico has postponed a plan to bundle life insurance with drivers licenses until January 3, local daily Reforma reported.
"We had announced on November 15 the new drivers licenses would be ready, but we had to postpone the program because the life insurance coverage of 50,000 pesos in the event someone dies in a vehicle accident wasn't included in [the State's] budget," the state's license director Aguilar was quoted as saying.
The new license will be valid for 1-4 years and will about 15 pesos (US$1.3) more a year than the old license because of the life insurance policy, which covers the death of the license holder or family members.
So far, attempts to introduce mandatory auto insurance in Mexico have failed because of political opposition. The city council of the capital, Mexico City which border the State of Mexico, approved the cover, but the mayor has refused to implement it on the grounds people who commute from neighboring states to the capital would be exempt.