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Set-Offs From Michigan No-Fault Insurance Benefits

Attorney Commentary on No-Fault Statute: MCL 500.3109

Deductions from personal protection benefits; state or federal benefits; injured person, definitions; deductible coverage provisions, personal protection benefits

This No-Fault statute requires that any insurance benefits received from the federal government be subtracted from Michigan No-Fault benefits (also called personal injury protection (PIP) benefits) that would otherwise be received.

For example, if a person receives Workers’ Compensation benefits for wage loss, he is not permitted to receive duplicative wage loss compensation from his own Michigan No-Fault insurer.

The purpose behind this statute is to prohibit those who are injured from receiving full compensation twice for the same injury. That doesn’t mean, however, that a car accident victim is necessarily prohibited from recovering from both sources.

For example, if a person suffers a personal injury as a result of an automobile accident while in the course of his employment, he can still receive both Michigan No-Fault wage loss and Workers’ Compensation wage loss, so long as the wage loss amounts are not duplicative.

Here’s another way to look at it.

Workers’ Compensation carriers usually pay 80 percent of someone’s net income after an auto accident, and Michigan No-Fault pays 85 percent of someone’s gross income. Under these circumstances, an injured person can receive the 80 percent of wage loss from Michigan workers compensation then claim the differential up to 85% of gross wages from his own Michigan No-Fault insurance company.

Remember, the work injury has to involve some type of motor vehicle accident (such as a car accident or truck accident) as well as be in the course of a person’s employment to qualify for both Workers’ Compensation and Michigan No-Fault.

Accidental Bodily Injury

This No-Fault statute also defines an injured person as a person suffering “accidental” bodily injury. A person will not be eligible for No-Fault insurance benefits if an auto accident was intentionally caused.

Additionally, this No-Fault statute permits insurance companies to offer, “at appropriately reduced premium rates, a deductible of a specified dollar amount” that “may be applicable to all or any specified types of” No-Fault PIP (personal protection insurance) benefits.

No-Fault Attorneys of Michigan Auto Law

The attorneys of Michigan Auto Law have been specializing in auto No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and want information about your No-Fault rights, please call one of our expert lawyers for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

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