No-Fault Work Loss Benefit Will Increase October 1, 2017

The maximum work loss benefit payment available to persons injured in a Michigan car accident is changing October 1. According to Bulletin 2017-12-INS, the maximum work loss benefit payment available to an auto accident victim from October 1, 2019 – September 30, 2020 is $5,718 per

This amount is an $89 increase from the maximum that’s permitted through September 30, 2017. Adjustments are made to the work loss benefit payment each year. The adjustment is based on the cost of living.

No-fault work loss benefits can be collected for a maximum of three years. The No-Fault Act says: “Work loss consisting of loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he or she had not been injured.

It’s important to note that car crash victims who would have earned an amount greater than the maximum amount allowable may recover the difference by filing an auto negligence claim against the at-fault driver and seeking excess economic loss damages.

Work loss benefits are just one of several ways that persons injured a Michigan auto accident are compensated for their injuries under the no-fault law. Other no-fault benefits include:

Work Loss Benefit Payment: More Important Points

Persons who are injured in a Michigan car accident should also keep the following in mind when it comes to work loss benefits.

  • Payment of the benefit is required if the injured person cannot perform the work that he or she would have done had it not been for the auto accident.
  • The benefit must take into account salary increases, overtime and other meritorious raises that the injured person would have received during their disability.
  • Any income earned by the car accident victim during the period of disability reduces the amount received under the work loss benefit.
  • The benefits cannot be reduced by the amount of sick time or vacation time the injured person is using during the period of disability.

If you have questions about the changes to the work loss benefit, including how it may impact your particular circumstance, our car accident lawyers in Lansing and auto accident attorneys in Grand Rapids can address your concerns. Contact our Michigan no-fault lawyers today.

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