Attorney Fees When No-Fault Carriers Delay Benefits Beyond 30 Days
When you’ve been injured in a car accident in Michigan, you rely on your no-fault insurance benefits to cover medical expenses, wage loss, and other necessary costs. Under Michigan’s no-fault insurance laws, insurers are required to pay these benefits promptly, usually within 30 days of receiving reasonable proof of a claim. Unfortunately, delays in payments are not uncommon, and when insurers fail to meet their obligations, it can create unnecessary financial and emotional stress.
Michigan law provides a remedy for this. When a no-fault insurance carrier unreasonably delays or denies payment beyond 30 days, you have the right to seek attorney fees in addition to the overdue benefits. This ensures that insurers are held accountable and that injured individuals have access to the compensation they need. Let’s examine how Michigan law addresses these delays and how you can protect your rights.
Michigan’s No-Fault Insurance Law And The 30-Day Rule
Under Michigan’s no-fault insurance system, insurers must pay benefits within 30 days of receiving reasonable proof of a claim, as outlined in MCL 500.3142(2). These benefits include medical expenses, lost wages, and reimbursement for replacement services. If an insurer delays payment without a valid reason, the benefits are considered overdue, and the insurer may face penalties.
The law not only protects accident victims but also discourages insurers from using delay tactics to avoid payment. An unreasonable delay or denial of benefits is a violation of the insurer’s legal duty. Courts have made it clear that insurers cannot withhold payment while conducting excessive investigations or searching for excuses to deny claims.
Attorney Fees For Overdue Benefits
When insurers delay benefits without reasonable justification, Michigan law allows injured individuals to recover attorney fees. MCL 500.3148(1) states that if a court finds an insurer unreasonably refused or delayed payment, the claimant is entitled to reasonable attorney fees. This law levels the playing field and makes sure that accident victims are not forced to bear the financial burden of pursuing overdue benefits.
To recover attorney fees, the claimant must show that the insurer’s refusal or delay was unreasonable. Michigan courts evaluate each case based on the specific facts, including the insurer’s rationale for withholding payment. If the delay was based on legitimate questions about the claim’s validity, the insurer might not face penalties. If the court finds that the insurer’s actions were unjustified, the courts will usually award fees to compensate the claimant for legal expenses.
The Impact Of Delayed Benefits On Accident Victims
Delayed no-fault benefits can have a significant impact on your recovery and financial stability. Medical bills can pile up, wage loss can make it difficult to cover everyday expenses, and the stress of dealing with an uncooperative insurer can slow your healing process. These delays contradict the purpose of Michigan’s no-fault system, which is to provide quick and efficient compensation for accident victims.
By pursuing attorney fees for delayed benefits, you can alleviate the financial burden of hiring legal representation, ensuring you have the support needed to fight for your rights.
How We Handle No-Fault Benefit Delays
When an insurance company fails to meet its obligations, our firm steps in to hold them accountable. We begin by gathering evidence to demonstrate that the delay was unreasonable and that your claim meets the requirements for payment. This may include medical records, proof of wage loss, and documentation of replacement service expenses.
Our goal is to secure the benefits you are owed as quickly as possible while also pursuing attorney fees to cover the costs of your case. Michigan’s laws are clear: insurers must act in good faith, and when they fail to do so, they must bear the consequences.
Michigan No-Fault Benefits FAQs
What Should I Do If My No-Fault Benefits Are Delayed?
If your no-fault benefits are delayed beyond 30 days, the first step is to determine whether the insurer has received reasonable proof of your claim. Provide any missing documentation the insurer requests and keep detailed records of your communications. If the delay continues without justification, contact an attorney experienced in Michigan’s no-fault insurance law. We can evaluate your case, identify unreasonable delays, and pursue legal action to recover your benefits and attorney fees.
How Does Michigan Define An Unreasonable Delay?
An unreasonable delay occurs when an insurer withholds payment without a valid reason. For example, if an insurance company delays payment while waiting for additional medical records, the delay may be considered reasonable. However, if the insurer’s delay stems from excessive investigations or tactics designed to avoid payment, it may be deemed unreasonable. Each case is evaluated individually to determine whether the insurer acted in bad faith.
Can I Recover Attorney Fees If My Benefits Are Delayed?
Yes, Michigan law allows you to recover attorney fees if an insurer unreasonably delays or denies payment of no-fault benefits. Courts award these fees to ensure that accident victims are not burdened with legal costs when pursuing overdue benefits. To recover attorney fees, you must demonstrate that the insurer’s actions were unjustified. If successful, the court will require the insurer to pay your legal fees in addition to the overdue benefits.
How Long Do I Have To Pursue Legal Action For Delayed Benefits?
In Michigan, the statute of limitations for filing a claim for overdue no-fault benefits is one year from the date the expense was incurred. This means you must act quickly to protect your rights. If your benefits have been delayed, contact an attorney as soon as possible to ensure your claim is filed within the required timeframe.
Contact Our Detroit Auto Accident Attorney For A Free Consultation
At Ravid & Associates, P.C., we understand how critical no-fault benefits are to your recovery and financial well-being. If your insurer has delayed or denied your benefits, we are here to fight for your rights. Our team is committed to holding insurers accountable and ensuring you receive the compensation you are owed, including attorney fees for unreasonable delays.
Contact our Detroit car accident attorney at Ravid & Associates, P.C. today by calling (248) 948-9696 to schedule your consultation. Ravid & Associates, P.C. represents clients in Detroit and across Michigan from our office in Southfield. Let us help you get the justice you deserve.
