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Attorney For Car Accident Discusses Insurance Companies & Denied No-Fault Accident Benefits

Michigan is the only state that orders insurance companies to provide unlimited, lifetime medical benefits to motorists injured in an auto accident, even if they were at fault. These benefits are called no-fault benefits. When an individual suffers injuries due to an automobile accident, they can make a claim for these benefits. However, often times they are denied their Michigan no fault benefits they are entitled to by their insurance company.

In fact, according to an article in the Detroit’s Premier Business Journal, automobile insurers routinely engage in illogical denial of claims, understanding that a plaintiff’s only alternative is through the court system, which could take years. In some cases, insurance providers trick plaintiff’s into agreeing to deny their claims. This trick is known as delaying your claim, denying you were hurt and defending aggressively.

It is perceived that many insurance companies deny plaintiffs benefits whenever possible so that they are actually able to make a profit. Insurance companies are able to do this by hiring their own doctors to examine the plaintiff. That doctor will tell the plaintiff that they are okay after the car accident, rather than diagnosing them properly.

The Michigan Catastrophic Claims Association (MCCA) is a reinsurer that is supposed to reimburse 100 percent of any future payouts under the no-fault law when an insurance company’s liability to a plaintiff reaches over $500,000. In 2010 the MCCA says it paid $816 million in claim reimbursements on 1,348 cases.  

“Michigan insurance statutes require insurers to pay legitimate claims within 30 days, and impose interest penalties on insurers who don’t comply. But the state’s no-fault law offers few specific definitions of what constitutes a legitimate claim and the Michigan’s Office of Financial and Insurance Regulation (OFIR) has little power to act when plaintiff’s and insurers disagree over the legitimacy of a claim,” says Teri Morante, senior deputy of OFIR.

If you suffer injuries due to an automobile accident, and the insurance company denies your no fault insurance benefits, you should contact an attorney immediately to discuss your case. Call us now at (800) 606-1717 to speak with an experienced attorney for car accident.
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