No Fault Insurance

Question 1

NY ONLY: What is no fault insurance?

Answer 1

Designed to divert minor auto accidents from the court system by denying the right to sue, while giving guaranteed compensation from an insurance company

NY DISTINCTION = benefits only for PERSONAL injuries

Valid Claimants (even if negligent):

- Insured owner
- Any authorized driver
- Any passenger 
- Any pedestrian  * * The other driver and his passengers collect from his own insurance 

Non-Valid Claimants (bad people):

- Drunk drivers
- Drag racers
- Car thieves
- Escaping felons

Injured Party Receives:

- Medical expenses
- Lost wages up to 2k/month for a max of 3 yrs
- Misc expenses of $25/day up to 1 yr
- BUT NOTHING for pain and suffering

** This benefit is portable (even if injured out of state)

BOTTOM LINE: if you see a CAR in a fact pattern THINK no fault insurance

Question 2

NY ONLY:Which injured parties are (and aren’t)allowed to collect no fault benefits from an insurance company (1st party benefits)?

Answer 2

Valid Claimants (even if negligent):

- Insured owner
- Any authorized driver
- Any passenger 
- Any pedestrian  * * The other driver and his passengers collect from his own insurance 

Non-Valid Claimants (bad people):

- Drunk drivers
- Drag racers
- Car thieves
- Escaping felons

Question 3

NY ONLY:When are you STILL permitted to file a traditional negligence suit in NY after the election of no fault insurance benefits?

Answer 3

1) Injuries exceed basic economic loss = > $50k
2) Serious injury
- death
- dismemberment
- significant disfigurement
- fracture
- loss of a fetus
- permanent loss of bodily organ or member/function
- permanent consequential limitation of bodily organ
- a non-permanent injury that prevents you from performing acts that are normally/customary for π for a pd of 90 days

NOTE: you can try for BOTH damages and no-fault recovery, but no double recovery (i.e. no 2x medical bills)