The new Michigan No-Fault law includes four categories of benefits that may be payable to accident victims directly, or to any designated caregivers responsible for the care of the injured party. They include:
Work/Wage Loss
Coverage is payable for up to three years and covers “loss of income from work an injured person would have performed” had the accident, and therefore the injury, not occurred.
Such benefits are payable at a rate of 85 percent of gross pay. Generally, overtime will be included when this is calculated. Additionally, victims of an auto accident who were considered “temporarily unemployed” at the time could receive work loss benefits.
Allowed Expenses
Auto insurance companies are required to pay benefits at a level up to what the coverage cap is as selected by the insured. This category includes such items as in-home accommodations, vocational rehabilitation, physical therapy, case management service guardian expenses, and more. An in-home patient care, attendant care, transportation costs (i.e. gas mileage) to and from medical appointments may also be covered.
First-Party Claim Replacement Services Reimbursement
Coverage includes reimbursement for expenses incurred by an injured person in an effort to obtain reasonably necessary services that the injured person would have required if they had not been injured. There are specific definitions to help define what gets covered under this reimbursement.
Up to $20 of household services may also be covered, including housekeeping, meal preparation, and cooking, snow blowing a driveway or sidewalk, and various types of yard work.
Survivor’s Loss Benefits
When a death caused by a motor vehicle accident occurs, the No-Fault law requires payment of survivor’s loss benefits to the dependents of the victim with monthly benefit payments determined by the courts. Benefits include the economic value previously provided by the deceased, replacement services, and funeral/burial expenses.
If you have any further questions on the impact of the new No-Fault law in Michigan on a recent auto injury you have suffered, call our team for a free consultation!