Michigan No-Fault Insurance Payees of Personal Injury Protection Benefits (PIP)
Lawyer Commentary on No-Fault Statute: MCL 500.3112
Payees of personal protection benefits; medical providers’ cause of action; payments as a discharge of insurer’s liability
No-Fault PIP benefits: Payees
This No-Fault statute provides that the people or “payees” to whom personal protection insurance or PIP benefits “are payable” may include:
- The “injured person”
- Someone who will accept the benefits payments “for the benefit of [the] injured person.”
- A deceased person’s dependents.
- Someone who will accept the benefits payments “for the benefit of [a deceased person’s] dependents.
Resolving doubt over No-Fault payees
If there is doubt and/or if there is dispute over whom the proper “payee” should be of the No-Fault benefits in question, then any or all of the following parties can “apply to the circuit court for an appropriate order”:
- The person injured in the automobile accident who is claiming No-Fault insurance benefits.
- The auto insurance company that is being asked to provide the claimed benefits.
- Any dependents of a person who has been killed or suffered wrongful death in an accident.
- “[A]ny other interested person.”
The court will designate “the proper person to receive the benefits” and/or “make an equitable apportionment . . . among the persons entitled to the benefits.”
Medical providers’ cause of action to recover No-Fault benefits
Significantly, this No-Fault statute permits a “health care provider” such as a hospital and/or doctor to “make a claim and assert a direct cause of action against an insurer” – through the Michigan Assigned Claims Plan – “to recover overdue benefits payable for charges for products, services, or accommodations provided to an injured person.”
Payment of No-Fault benefits is discharge of insurer’s liability
This statute defines when an insurance company’s payment of No-Fault benefits will allow the insurer to avoid future liability.
Specifically, the statute states:
“Payment by an insurer in good faith of personal protection insurance benefits, to or for the benefit of a person who it believes is entitled to the benefits, discharges the insurer’s liability to the extent of the payments . . .”
The only exception to this rule that discharges an auto insurance company’s future liability to pay No-Fault benefits is if “the insurer has been notified in writing” that it must pay the benefits to “some other person.”
No-Fault Lawyers of Michigan Auto Law
The lawyers of Michigan Auto Law have been specializing in automobile No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and need help with your No-Fault insurance, please call one of our experienced 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.