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How does No Fault wage loss apply to a retired person?

May 19, 2014 by Steven M. Gursten

Lost wages compensate car accident victims for what they would have earned at work while they’re recovering from their injuries. Learn how seniors can benefit here

No Fault wage loss in Michigan is an important No Fault insurance benefit that compensates you for your wages lost, when you’re unable to work due to auto accident injuries. Wage loss is paid by your own No-Fault insurance company for up to the three years after a crash under Michigan’s No Fault law.

As an attorney, I often get questions from retired senior citizens who’ve been in auto accidents, wondering if lost wages applies to them.

Here’s a question I recently received that should help clarify:

Q. How does Michigan No Fault wage loss apply to a senior or a retired person?

A. From your question, I’m assuming you are a senior who has already retired and left the workforce. That’s an important distinction, because there are many seniors who still have full- or part-time jobs. If you are a senior and working, you would get Michigan’s wage loss benefit just as any other employed person would.

All you need initially is to make a No Fault insurance claim, file an application for benefits, and have a doctor’s disability slip.

Under our current No Fault law, if you’re injured in an automobile accident between October 1, 2013 and September 30, 2014, your maximum wage loss benefits are now $5,282 per month.

In other words, if you’re unable to return to work because of your injuries, you’re entitled to a maximum amount $5,282 each month from your own No-Fault insurance company for up to three years following the date of your accident.

But what if I’m a senior citizen and no longer working?

If, however, you are retired and out of the workforce, you can opt out of wage loss coverage by signing a waiver pursuant to MCL 500.3107(2)(a). To opt out, you must be at least 60 years of age.

For more information about lost wages and how it’s calculated, take a look at my recent blog post, “Update: Michigan No Fault wage loss rate raised.”

Related information:

I’m on Medicare/Medicaid, who pays my bills after a crash?

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