Michigan Catastrophic Claims is one of the more unique elements of auto accidents and car collisions in Michigan. They are guided by the Michigan Catastrophic Claims Association (MCCA). It aims to provide an extra source of coverage for individuals who are involved in a car accident in Michigan.
Here at Haque Law, our Southfield personal injury lawyers make sure that you know about every bit of information relating to your auto insurance. This article aims to provide information on Michigan Catastrophic Claims and what it means for you.
The Michigan Catastrophic Claims Association (MCCA)
The Michigan Catastrophic Claims Association (MCCA) is a private association. They are created in 1978. It is a unique part of the no-fault insurance law in Michigan. Here, vehicle owners and registrants of the motor vehicles registered in Michigan have the option to buy unlimited lifetime coverage for medical expenses resulting from motor vehicle accidents.
The MCCA covers up to $600,000 in claims in auto accidents in Michigan and deals directly with the insurance policy provider of the persons involved in the accident.
History of the Michigan Catastrophic Claims Association
The Michigan Catastrophic Claims Association (MCCA) was established by the legislature back in 1978 through an amendment of the Michigan No-Fault Act. The main goal of the law is intended to fund the reimbursements of the insurance companies for severe injury claims.
To date, the MCCA has paid $18 billion in assets to reimburse insurers for benefit payments over $600,000.
Are insurance companies in Michigan required to be part of the MCCA?
Yes, each insurance company in Michigan is required to be a member of the MCCA. They pay a premium or an assessment to the MCCA annually to be a member. The costs of membership are passed on to the policyholders.
May I pay directly to the MCCA?
No, the MCCA assessment is on a per vehicle charge. The insurance company is also permitted by law to include administrative and other miscellaneous costs in the assessment rate. This may be passed on to the policyholder. From 2021 to 2022, insurance companies are charged $86 per policy, which they pass on to the policyholder.
Is the MCCA assessment based on the number of drivers in my household?
No, the MCCA covers each car that you own and not each member of the family. The per-car assessment is important since it covers the catastrophic claims that occur during the year and not the number of persons that may be affected by the car accident.
What is a mortality assessment?
A mortality assessment or a mortality assumption is important in determining future payments of the MCCA. MCCA uses variables such as age, gender, and the type of injury in their mortality assessment. The estimated life span of the drivers injured in the collision in Michigan is assessed at 105 years after the accident.
How does 6/11/2019 Affect the MCCA claims?
Upon the implementation of the new No-Fault law’s PIP medical benefits coverage, only those individuals who choose to have an “unlimited” or a “no limit” coverage in their No-Fault policies will be able to claim the benefits under the MCCA program.
To recall, the 6/11/2019 reform gave the drivers and registrants in Michigan a choice on the no-fault law’s PIP medical benefits coverage levels that they are entitled to. Those who did not choose the unlimited no-fault coverage will have to pay for the major problems in case tragedy strikes. They will never be entitled to the No-fault medical benefits paid through the MCCA and will be limited by what is included in their No-Fault policy.
Does this mean that if I do not get the unlimited coverage, I will have no coverage under MCCA, no matter the intensity of the injury?
Yes. Given the option that has been granted to drivers and registrants, you are not entitled to any of the MCCA benefits if you do not get the coverage that comes with it.
How does 6/11/2019 Affect the MCCA catastrophic care services?
One of the hottest topics of contention is the effect of the new MCCA rules on catastrophic care services. Under the new rules, individuals who need at-home care would see a reduction in the at-home care. The current limit is 56 hours of care. This would only be paid per week.
Individuals who need care 24-7 are now worried about how the reduced rates would affect their care. Lawmakers are being asked about the new requirements. It is clear is that as long as a person has unlimited coverage, he can fight for his rights in court.
This is where Haque Legal aims to provide the most help to our clients. We aim to ensure that our clients would be able to get the best possible care coming from their insurance policies, nothing more and nothing less.
Let Haque Legal Help You With Your Collision Problem
Now that you know some facts about your rights in case of a car crash in Michigan, it is time to reach out to the Southfield car accident attorneys about your case. If you require a lawyer who can assist you with ensuring that you protect your rights to your property, it is important to know that you also have a team that can help you out with your specific needs.
Our law firm is dedicated to making sure that those who are innocent will be protected by the law and the full extent of justice will be used.
The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.
Let us help you out.
If you are having trouble with filing an insurance claim, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call.
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