ARTICLE 3
What is No-Fault Insurance Coverage?

In this article we will discuss some of the rules of No-Fault Insurance Coverage. No-Fault is also referred to as PIP – Personal Injury Protection. In New York State every insurance policy includes No-Fault. No-Fault simply means that in the event of an accident, all persons in the car are covered for their medical bills, loss of earnings and medical-related expenses. The coverage extends to the driver and the passengers. If people are injured in a two or three car accident, people are injured, then the people in car #1 are covered for No-Fault by the insurance company of car #1; The people in car #2 are covered by the insurance company of car #2, and so on. A pedestrian is covered by the car that struck him. If a passenger in a car is injured, but the car is uninsured, who will pay the No-Fault Benefits? The No-Fault will be paid by the insurance company of any car registered to any family member living in the household. For example, if a person is injured in an accident in which he was a passenger in his friend’s car but later finds that the car is uninsured, then he can make an application for No-Fault coverage to his father’s insurance company or his brother or sister if they have a car and live in the household. In this situation, their insurance rates do not usually go up. In the event that the car you are in is uninsured, but no one in your family has a car, who will pay No-Fault? A New York State Agency, MVAIC (Motor Vehicle Accident Indemnification Corporation), will pay the No-Fault benefits. Be sure to file your No-Fault application (NF2) within thirty (30) days of the date of accident.

Most No-Fault policies have a maximum payment of $50,000 for medical bills, lost earnings and medical related expenses ($25 a day). Lost earnings are paid to a maximum of $2,000 a month, less 20%, less New York State Disability. That means that if an injured person is out of work due to injuries sustained as the result of an accident, then No-Fault will pay up to $2000 a month, less 20%, because that money is not taxable. If the injured person is eligible for New York State Disability payments that will also be deducted. If the accident happened in the course of your employment, then you would file for Workers Compensation. However, No-Fault applications should still be filed for loss of earnings which is not covered by Workers Compensation.
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The rules and regulations of No-Fault are complicated and intricate. However, if you are injured as the result of a car accident, you are entitled to these benefits and should file for them. If you have any questions about this area of Insurance Law, please do not hesitate to call our office at (718)258-8080.