Starting October 1, 2017, the monthly maximum a car accident victim can recover in No-Fault lost wages will be $5,541 – an $89 increase from the 2016-17 wage loss rate
What is the most that a Michigan auto accident victim can receive in monthly No-Fault lost wages benefits for 2017-18?
“[T]he new work loss … benefit payable, effective October 1, 2017 through September 30, 2018, shall not exceed $5,541 per single 30-day period. This maximum shall apply pro rata to any lesser period of work loss.”
That new No-Fault work loss maximum is according to the Michigan Department of Insurance and Financial Services (DIFS)’s Bulletin 2017-12-INS, entitled “Annual Adjustment of the Maximum Work Loss Benefit and Survivors’ Loss Benefits Payable under Policies of Personal Protection Insurance.”
Significantly, the monthly No-Fault lost wages max will increase by $89 from the 2016-2017 maximum amount of “$5,452 per single 30-day period.”
How do No-Fault lost wages benefits work?
Most people don’t understand how the No-Fault Law’s amazing PIP benefits and protections help to rebuild lives after a car accident.
Work loss — often referred to by No-Fault attorneys as wage loss or lost wages — is one of the most important No-Fault protections.
Here’s how lost wages works if you’ve been injured in a car crash in Michigan:
How much can a person receive in No-Fault lost wages?
If a person suffers auto-accident-related injuries that prevent him or her from returning to work, then No-Fault lost wages benefits will pay up to 85% of the “income from work” the “injured person” would have earned “if he or she had not been injured.” (MCL 500.3107(1)(b))
Who pays No-Fault lost wages?
They’re paid by a person’s auto insurance company and they’re paid “without regard to fault,” i.e., regardless of whether the person was at fault in causing the accident that resulted in the injuries disabling the person from working. (MCL 500.3105(1) and (2))
How long can a car accident victim receive No-Fault lost wages?
Lost wages benefits will be paid “during the first 3 years after the date of the accident” and they’re capped at a monthly “maximum” amount (which is stated above) that’s “adjusted annually” to “reflect changes in the cost of living,” but a “change in the maximum shall apply only to benefits arising out of accidents occurring subsequent to the date of change in the maximum.” (MCL 500.3107(1)(b))
The No-Fault lost wages max isn’t the only thing that’s changing for the coming year. There’s also a new maximum that the family of a Michigan auto accident victim can receive in monthly No-Fault car insurance death benefits — also known as survivor’s loss benefits — for 2017-18.