Under the Michigan no-fault law, a person involved in a motor vehicle accident is entitled to certain benefits from their automobile insurance carrier, unless they were driving a car they owned without insurance. These benefits are often referred to as Personal Injury Protection PIP benefits or first-party benefits. Every auto insurance policy is a no-fault policy and contains the right to receive no-fault benefits.
The central tenant of the Michigan no-fault law is the actual “no-fault” provision found in the law. A person is entitled to no-fault benefits, even if they caused the accident, so long as the person was involved in a motor vehicle accident.
Passengers, pedestrians, bicyclists, and drivers are examples of people entitled to no-fault first-party benefits. It is important to understand that just because you do not personally have automobile insurance coverage does not mean you are not entitled to these first-party benefits. Even without auto insurance, in almost all situations you are still entitled to PIP benefits.
In addition, just because you were not inside a car or truck at the time of the accident does not preclude you from receiving first-party PIP benefits. Again, in most situations you are still entitled to PIP benefits.
The no-fault benefits accident victims are entitled to are extensive. They include, but are not limited to, reimbursement for medical expenses such as doctor and hospital visits, lost wages, household replacement services, attendant (nursing) care, survivor's loss benefits, and reimbursement for travel expenses related to medical care.
To receive first-party benefits, an accident victim must first complete an Application for No-Fault Benefits. This application must be completed and returned to the automobile insurance company handling the first-party claim within 12 months of the date of the accident. This deadline is compulsory and an accident victim will not be entitled to receive no-fault benefits if the application deadline is not met.
Another important detail contained within the Michigan no-fault law is the one-year back rule. Under this rule, an accident victim may not recover benefits owed to them, such as lost wages, if more than one year has elapsed from the time the expense was incurred. In addition, the plaintiff may not recover benefits for any loss incurred more than one year before the date a lawsuit was commenced.
For example, a doctor's bill incurred on July 1, 2008 must be paid by July 1, 2009. If the bill is not paid, a lawsuit must be commenced before July 1, 2009 to enforce payment, otherwise the auto insurer is not obligated to pay that bill and the injured person may be stuck paying the entire medical bill.
There are certain rules of priority to determine which insurance company is responsible for the payment of no-fault benefits. Typically, you look to your own auto insurance company first, or through a resident relative. If no coverage exists at that level, there a number of different places to seek insurance, depending on whether you were an occupant in the vehicle, a pedestrian, a motorcycle or employer’s vehicle.
First-party PIP benefits are an important part of Michigan's automobile law and an area of the law most people are not familiar with. The Law Offices of Lee B. Steinberg, P.C. suggests you consult with an experienced law firm that specializes in Michigan no-fault law so you can receive all the benefits you are entitled to under the law.
The Law Offices of Lee Steinberg, P.C. has represented numerous car accident victims, helping them obtain the compensation they deserve under the law. Please contact our office directly at 1.800.LEE.FREE (533-3733) to find out your rights and how we can begin fighting for you.
"Because it’s not just the law, it’s Lee."
