Amidst Pandemic, Work-Loss Benefits Increase Under Michigan No-Fault Act

What is the amount of wage-loss benefits allowed under the Michigan No-Fault Act? That depends.

On Aug. 9, the director of the Michigan Department of Insurance and Financial Services announced changes to the new work loss and survivors’ loss benefits payable, effective Oct. 1, 2021 through Sept. 30, 2022.

The benefits, which are a part of Michigan's personal protection insurance (PIP) No-Fault benefits, will increase to $6,065 per a single 30-day period. This maximum shall apply pro rata to any lesser period of work loss.

The maximum work loss and survivor’s loss benefits for the previous year (Oct. 1, 2020 through Sept. 30, 2021) was $5,755 per a single 30-day period. This is an increase of $11,160 over three years and an increase of $310 per month (or 30-day period).

Like in prior years, the benefits have a three-year cap from the anniversary date of the date of loss and must be supported by reasonable proof of the fact and of the amount of loss, which requires legitimate restrictions or limitations that prevent a claimant from working and which must be supported by written documentation from a licensed medical provider, along with proof demonstrating actual wage loss because of the accident.

A link to the director’s bulletin can be found by clicking here.

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