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No-Fault Act and Statutes

No Transfer of No-Fault PIP Benefits

Michigan No-Fault Statute: MCL 500.3143

Assignment of right to future No-Fault benefits is void

A right to future No-Fault benefits cannot be transferred to another individual for any reason.

Specifically, this statute states:

“An agreement for assignment of a right to benefits payable in the future is void.”

This means that a person who is injured in a motor vehicle accident cannot promise to give his future No-Fault benefits to another person because these future rights cannot be sold or transferred. A person is not prohibited, however, from assigning No-Fault benefits received in the past.

For example, in one Michigan case, it was held that when a car accident victim signs a document promising to turn over No-Fault benefits that have not yet been received, the document is void. (Aetna Casualty v. Starkey (1998))

However, in another case, a court explained that it is acceptable for an injured individual to assign No-Fault benefits that were previously owed to a medical provider. (Professional Rehabilitation Associates, as Assignee of Clifford Lay v. State Farm (1998))

This statute does not prevent a lawyer for a No-Fault claimant to negotiate an amount for No-Fault benefits that may be owed into the future with the insurance company responsible for payment. Insurance companies in Michigan may sometimes seek to pay a present lump sum amount of No-Fault benefits at a discount to what those No-Fault benefits might otherwise accrue to be over time.

The lawyers at Michigan Auto Law strongly discourage that any such “futures” be negotiated or settled with a No-Fault insurance company for an auto accident victim who has suffered traumatic brain injuries or spinal cord injuries.

No-Fault Insurance Lawyers of Michigan Auto Law

The lawyers 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, truck or motorcycle accident and are having trouble with your No-Fault insurance company, please call one of our expert attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.

We are here to help you.

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