Michigan Auto Accidents: Work & Survivors’ Loss Benefits Get Adjustment

auto-insurance-benefit-paymentThe Michigan Department of Insurance has changed the maximum amount of work loss and survivors’ loss benefits that a person injured in a car accident can receive during a 30-day period.

Effective October 1, 2019, through September 30, 2020, the maximum work loss benefit and survivors’ loss benefit that’s payable for a one-month period is $5,718.

Why are these personal protection insurance (PIP) wage loss and survivors’ loss benefits adjusted each year? To reflect the cost of living. The Michigan Insurance Code requires the director of the Department of Insurance to adjust the benefit on an annual basis. Each adjustment is effective on October 1st of each year, and applies only to benefits arising out of auto accidents occurring after the date of changing the maximum.

More About Work Loss Benefits

Under MCL 500.3107(1)(b), if a person cannot work because of a car accident, no-fault work loss benefits are payable for a maximum of three years. Work loss benefits are defined as compensation for “loss of income from work an injured person would have performed during the first three years after the date of the accident if he or she had not been injured.”

Work loss benefits are payable at the rate of 85 percent of gross pay, including overtime. However, work loss benefits cannot exceed the monthly maximum that’s adjusted each year to keep pace with the cost of living. Take note that these adjustments only apply to accidents occurring after each adjustment date. This means the monthly maximum applicable at the time of the auto accident is the monthly maximum that continues to apply for the remainder of the injured person’s three-year benefit period.

More About Survivors’ Loss Benefits

In cases where a car accident results in a person’s death, dependents can recover no-fault survivors’ loss benefits under MCL 500.3108 and funeral and burial expenses under MCL 500.3107(1)(a).

Survivors’ loss benefits are payable for three years and are subject to the same maximum monthly that’s applicable to work loss claims. These benefits include several things, like after-tax income, lost fringe benefits and replacement service expenses. The statute says these benefits are payable for the

“loss … of contributions of tangible things of economic value … that dependents of the deceased … would have received for support during their dependency … if the deceased had not suffered the accidental bodily injury causing death and expenses, not exceeding $20 per day, reasonably incurred by these dependents during their dependency … in obtaining ordinary and necessary services in lieu of those that the deceased would have performed for their benefit if the deceased had not suffered the injury causing death.”

Do you have questions about your no-fault insurance coverage, including work loss or survivors’ loss benefits? If so, contact one of our Lansing car accident lawyers or Grand Rapids auto accident attorneys. Our legal team represents clients across Michigan, helping them get the PIP benefits to which they’re entitled.