Michigan Motor Vehicle No-Fault Law
With regard to resolving Auto-Related Injury Claims in the State of Michigan, this state is referred to as a No-Fault State. The purpose of the Michigan Motor Vehicle No-Fault laws, enacted in 1973, was designed to correct those problems and/or deficiencies of the former tort laws relating to automobile-related accidents. The basic intention of the law was threefold: 1.) to provide self-insurance coverage irrespective of fault; 2.) to allow for the prompt payment of some economic damages; and 3.) to impose certain limitations on suits brought against the other driver responsible for the accident and on the recoverable damages. Therefore, in Michigan, under the applicable No-Fault law, as a party injured as a direct result of an auto-related incident, one could potentially have the right to proceed with both a first-party and third-party claim, all dependent upon the specific circumstances which resulted in there being a auto-related incident.
THE FIRST-PARTY CLAIM
An individual claimant, seriously injured in a automobile-related accident is eligible to bring his/her claim against a no-fault insurer (insurance company) who, by contract or law, is required to pay no-fault benefits to the claimant. Here, no-fault first-party benefits are payable to anyone who suffers an injury “arising out of the ownership, operation, maintenance or use of a motor vehicle.” Injured persons are able to request payment of benefits associated with all reasonable and necessary medical and rehabilitative expenses, past, present, and future…..; wage loss only for actual loss of earnings……; and replacement services…..
THE THIRD-PARTY CLAIM
An individual claimant, seriously injured in a automobile-related accident, may be eligible to bring forth a formal suit against the driver or owner of a motor vehicle which breached a duty of care, and thus caused an individual to sustain a serious injury.