These are claims for economic losses arising out of an automobile, truck, bus, motorcycle or other collision with a motorized vehicle. Pursuant to the No-Fault Act, these economic losses can include:
1. Payment of medical bills. It is defined as treatment for the care, recovery or rehabilitation of an injured individual. This is very broad. It includes: hospitalizations, medical testing, physical therapy, medical braces/devices, and visits to a health care provider.
Practice tip: No-Fault automobile insurance policies issued prior to July 1, 2020 provided lifetime unlimited medical coverage.
2. Wage Loss. The first three years of wages following a collision if the injured person is disabled from performing their work duties. A physician must determine that the injured person is unable to perform their work duties.
Practice tip: Only the first three years of wages following a collision are covered by the No-Fault Act. If an injured person is disabled for the remainder of their life, the excess economic claim can become part of the 3rd party claim against the negligent driver.
3. Household services. An injured person is entitled to up to $20 per day for house cleaning services the injured person performed prior to the collision. Again, a physician usually needs to disable the person from performing the cleaning chores.
Practice tip: Only the first three years of household services following a collision are covered by the No-Fault Act.
4. Attendant Care. This is care for an injured person’s personal needs. It is often thought of as things a nurse might perform. It can include assistance for: bathing; getting dressed; taking medications; preparing meals; and other things.
5. Medical mileage. An injured person is entitled to reimbursement for mileage to and from health care visits. A severely injured person may require a transportation service.
6. Prescriptions. An injured person can be reimbursed for medications necessary for treatment or pain relief.
Let’s start here since it is the most important. Owners of automobiles are required to carry automobile insurance. The first place to look for No-Fault coverage is through your own automobile insurance carrier. The next place to look is through a policy of insurance maintained by a resident relative.
After this, it gets more complicated. See below:
Pedestrian struck by an automobile.
Motorcycles. They are different than automobiles. Why? Insurance companies generally do not write No-Fault policies for motorcycles.
Passengers in vehicle.
You should consult an attorney to determine, the order of priorities and where to look for No-Fault coverage. The law changed in July of 2020. Some injured people will end up seeking No-Fault benefits through the Assigned Claims fund.
This one is easy. Michigan is a No-fault state so you do not have to prove negligence to obtain benefits. For example, a vehicle that slides off the highway and strikes a tree will still allow the injured driver to obtain No-Fault benefits.
Any treatment related to the collision can be covered. Remember it is economic losses as described above.