Personal Injury Protection Insurance Benefits | Benefits Of (PIP)

Personal Injury Protection Insurance Benefits | Benefits Of (PIP)

The first claim that arises under the no-fault system for people, who have sustained personal injury and motor vehicle accidents, is the claim for no-fault benefits. Technically these benefits are called PIP benefits which stand for personal injury protection benefits. They're also called first party benefits. And they are usually, paid by the victims own motor vehicle insurance company. Regardless of, who was at fault? There are some exceptions to this.

For example: - If you're driving or occupying a vehicle furnished by your employer, in that case, you would recover these personal injury protection benefits from your employer's insurer. But the general rule that applies in most accidents is that these benefits are paid by the victims own auto no-fault insurance. They consist of some very important benefits.

Benefits Of (PIP) | Personal Injury Protection Insurance
Benefits Of (PIP) | Personal Injury Protection Insurance 

Allowable Medical Expense Benefit

The first and most important is called the allowable medical expense benefit. Under Michigan law, this is the benefit. Actually, that distinguishes Michigan no-fault system from the other thirteen states, that have no fall. Under the Michigan system, the allowable medical expense benefit. Is defined as a benefit, that pays for all reasonable charges for reasonable, necessary, products, services and accommodations for an injured persons care recovery or rehabilitation. 

And that's language right out of the statute and as you can see, its very broad language. Michigan courts have interpreted those words in a very broad way. That they cover not only your hospital bill and your doctor bill, but the pip benefit covers things such as.

Ø  If you need in-home attendant care or in-home health care. That's a covered benefit, it can be provided by your family by your neighbors or by a commercial agency.

Ø  If your home needs to be adapted so, that it's barrier-free to accommodate a disability that's included.

Ø  Mileage expenses to and from medical care is an included benefit.

Ø  Special adaptive equipment durable medical equipment wheelchairs, walkers those are all covered.

Ø  In fact, in cases of severe injury, the cost of appointing a guardian or a conservator is also a personal injury protection benefit and allowable expense benefit. 

Personal Injury Protection Wage Loss Benefit

The second personal injury protection benefit is a wage loss benefit. Unlike the allowable expense benefit, these wage loss benefits are limited to three years. They do have a cap. They're calculated at 58% of your gross income up to the cap. The cap at the present time it's adjusted every year is approximately $4700 a month.

Replacement Service Expense Benefit

The third benefit is called a replacement service expense benefit. This is a benefit that essentially is an allowance of $20 a day to reimburse you. If you have people come into your life, to do things for you, around the house that you used to do for yourself or your dependents. But you can no longer do, because of your injury. And again this replacement service expense benefit is limited to $20 a day and for 3 years only. In cases of death. The no-fault statute provides for a survivor's loss benefit. 

That is also payable for 3 years to the dependents of a deceased and this survivors loss benefit is very similar to the wage loss benefit, in a subject to the same camp. The important thing about these no-fault personal injury benefits or first party benefits is that.

Must Be Claimed Promptly And Properly

They must be claimed promptly and properly. The law is very strict here. You have to provide written notice to your insurance company within one year of the accident. Specifying details that the statute requires such as the nature of your injury, the location of your injury and facts about your injury. You must do that if you don't submit that written notice. You lose your right to recover these no-fault personal injury protection benefits. The only exception to that would be. 

One Year Back Rule:- If your insurance company has made a payment within that first year. But just because you submit that written notice doesn't mean you're home free yet. Because there's another one rule. This is called the one year back rule. Which says that every single expense that you incur only has a one-year legal enforcement period.

A lot of people get trapped by this one year back rule. It works like this. If you go to the doctor today and for some reason, you’re no-fault insurance company doesn't pay this bill today. You have 365 days to file legal action from the date the service was rendered or you lose the right to enforce payment of that particular expense. 

Unfortunately, I’ll see this too many times, where they wait or they don't know their rights and the time passes and now they have expenses that were compensable but no longer are. You have to know, your rights and you got to move promptly. Frequently there are legal disputes about what's covered and what isn't and that's why it's really important to get the help of somebody, who really understands the legal intricacies of these no-fault personal injury protection benefits.

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