The History of the No-Fault Act

The No-Fault Act was created to ensure that a person injured in an automobile accident would be able to maintain their home and provide for their family while they recover from their injuries. Michigan’s No Fault Act came into law in 1973, and it separates economic losses (salary, medical expenses, etc.) from non-economic losses (e.g., pain and suffering).

If you are involved in an automobile accident, you may be able to collect money in two ways. 

A Third Party Claim is for how the injury affects the person’s life, no matter what the injury is. It is designed to place a value on the injured person’s loss of ability to live their daily life how they used to, before the accident.

Third Party claims can be other costs and expenses not covered under First Party claims. For example, a Third Party Claim can include payment for pain and suffering, or a change in lifestyle. 

In general, First Party claims are meant to cover the actual cost, in dollars, of the accident. They are also called Personal Injury Protection claims or No Fault claims. They are designed to cover the cost of medical care, and may include wages, money for medical bills. These claims usually have an economic value or actual dollar amount that a person can identify and prove with a receipt. Under current Michigan law, payment of medical bills is a lifetime benefit as long as it’s related to the accident.

 

FRIED SAPERSTEIN ABBATT P.C.

29800 Telegraph Rd. Southfield, Michigan 48034

Telephone : (248) 353 6500
E-mail : info@fsalawfirm.com

Click here to Contact Us and for Directions