The new maximum wage loss rate that a car accident victim can recover increases $54 to $5,452 per month on October 1, 2016
What will be the most that a Michigan auto accident victim can receive in monthly No Fault wage loss benefits for 2015-16?
“[T]he new work loss … benefit payable, effective October 1, 2016 through September 30, 2017, shall not exceed $5,452 per single 30-day period. This maximum shall apply pro rata to any lesser period of work loss.”
That’s according to the Michigan Department of Insurance and Financial Services (DIFS)’s Bulletin 2016-19-INS, entitled “Annual Adjustment of the Maximum Work Loss Benefit and Survivor’s Loss Benefits Payable under Policies of Personal Protection Insurance.”
Significantly, the monthly No Fault wage loss max will increase by $54 from the 2015-16 maximum amount of $5,398 “per single 30-day period.”
How do No Fault wage loss benefits work?
As an auto accident attorney, I’ve witnessed the important and vital protections afforded by the wage loss benefits guaranteed by Michigan’s No Fault car insurance law. Here’s how wage loss works if you’ve been injured in a crash in Michigan:
- How much: If a person suffers auto accident-related injuries that prevent him or her from returning to work, then No Fault wage loss 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: Wage loss benefits are 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: Wage loss 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))
Here’s more information about applying for wage loss benefits, how wage loss benefits are calculated and what the requirements are for collecting “excess” wage loss benefits.