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What are replacement services?

Oftentimes, a person sustains serious injuries as a result of a Michigan car accident, which renders him or her unable to do things that he or she was able to do prior to being injured. Sometimes, the injured person has to hire professional companies to clean the house, cut the lawn, shovel the snow, etc. More often, the injured person relies on family and friends to do these things. These types of services are commonly referred to as "Replacement Service Expenses."

Section 3107(1)(c) of the Michigan No-Fault Act is the specific statutory section that entitles auto accident victims to be compensated for Replacement Service Expenses." Under this section, an injured person may be reimbursed for services provided by others for his or her benefit. These services are capped at $20.00 per day and are limited to three (3) years from the date of the accident. Replacement Service Expenses commonly include, things such as housekeeping, laundry, home and yard maintenance, etc. It is important not to confuse Replacement Service Expense with Attendant Care benefits, which are not capped at $20.00 per day. These benefits are often up to $20.00 per hour, not per day.

Replacement Services can be provided by family and friends. It is important to document the services being provided so that a claim can be submitted to the No-Fault insurer. Much like an Attendant Care claim, a written claim should be submitted to the insurer with the (1) the name of the injured claimant; (2) the name and address of the service provider; (3) the days and number of hours the services were provided; (4) the specific services provided; and (5) a note from a physician stating that the services are necessary, including the number of days/hours needed (See e.g. Attending Physicians Report).

A detailed explanation on how to receive these benefits and precisely what benefits are available to an accident injury victim are contained in "The Ultimate Michigan Car Accident Handbook."


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