The highlight of the Michigan no-fault law may be found under MCL 500.3107. This portion of the Michigan No-Fault Act prescribes various benefits available to individuals injured in a motor vehicle accident.
The statute reads in pertinent part:
500.3107 Expenses and work loss for which personal protection benefits payable.
(a) Allowable expenses consisting of all reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery, or rehabilitation.
(b) 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. Work loss does not include any loss after the date on which the injured person dies. Because the benefits received from personal protection insurance for loss of income are not taxable income, the benefits payable for such loss of income shall be reduced 15% unless the claimant presents to the insurer in support of his or her claim reasonable proof of a lower value of the income tax advantage in his or her case, in which case the lower value shall apply.
(c) Expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he or she had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of himself or herself or of his or her dependent.
As this section reads, there are three important benefits available to people injured in a car or truck accident in Michigan. They include allowable expenses, wage loss benefits and replacement services.
Allowable Expenses:
Allowable expenses include the payment of hospital bills, doctor bills, physical therapy, surgery, attendant care, prescription drugs, medical mileage and other expenses incurred for a person’s care, recovery or rehabilitation due a motor vehicle accident, such as a car or truck accident. However, the charges must be reasonable and related to the accident.
Wage Loss:
Under the law, the car insurance carrier must pay 85% of all gross wages for loss of income an injured person would have earned if not for the accident. These payments must continue for up to 3 years from the date of the accident so long as the injured person remains disabled from work due to the accident.
Replacement Services:
MCL 500.3107(1)(c) allows for payment of replacement services performed by family members or friends. These services usually entail household chores such as cleaning the home. Replacement services are capped at $20 per day and are available up to 3 years from the date of the accident.
