Here’s the new maximum work loss rate a car accident victim can recover this year under Michigan’s No Fault Law
The Michigan No Fault wage loss rates for car accident victims have been updated for 2015-16:
The monthly max for No Fault wage loss will be $5,398, starting October 1, 2015, through September 30, 2016.
The new rate is only a $6 increase from the 2014-15 amount, according to the Michigan Department of Insurance and Financial Services (DIFS)’s recently released Bulletin 2015-20-INS, entitled “Annual Adjustment of the Maximum Work Loss Benefit Payable under Policies of Personal Protection Insurance.”
Understanding No Fault wage loss benefits
Here’s how wage loss – also called work loss and lost wages – kicks in if you’ve been injured in a car or truck accident in Michigan:
- If a person suffers auto-accident-related injuries that prevent her from returning to work, then Michigan wage loss benefits will pay up to 85% of the income from work the injured person would have earned had it not been for the crash.
- The accident victim is paid by a person’s auto insurance company regardless of who was at-fault in causing the accident that resulted in the injuries.
- Wage loss benefits are paid for up to three years from the date of the accident, and they’re capped at an monthly “maximum” amount (which is stated above at $5,398,) that’s adjusted annually.
Here’s more information about applying for wage loss benefits and how they’re calculated.
For anything beyond three years of wage loss, an accident victim would have to sue for excess economic benefits, also called a pain and suffering lawsuit.