Detailed Answer
When a person suffers lost wages due to a car accident or other personal injury in Michigan, he or she can claim those losses under first-party benefits (no-fault) or in a third-party tort lawsuit. The timeline to resolve such a claim depends on the type of claim, the complexity of injuries, insurer cooperation, and court schedules. Below is an overview under Michigan law.
1. Payment of Lost Wages Under No-Fault Insurance
Michigan’s Personal Protection Insurance (PIP) covers lost wages up to 85% of gross income. Under MCL 500.3107(1), an insurer must pay PIP benefits, including lost wages, within 30 days after receiving reasonable proof of loss. In practice, insurers often resolve straightforward claims in 1–3 months from the accident date.
2. Statute of Limitations
- PIP Lawsuits (first-party): You must sue for unpaid no-fault benefits within 1 year after the date of loss. See MCL 500.3145(1).
- Third-Party Personal Injury Lawsuits: You have 3 years from the date of injury to file a tort action. See MCL 600.5805(2).
3. Typical Case Timeline
- Initial Claim Filing: File an insurance claim within days of the accident.
- Insurer Investigation: 1–3 months for medical records review and wage verification.
- Medical Treatment: 6–12 months to reach maximum medical improvement.
- Demand and Negotiation: 3–6 months to exchange settlement demands and counteroffers.
- Filing a Lawsuit: If negotiations stall, file suit. Courts may schedule initial hearings 2–6 months later.
- Discovery and Motions: 6–12 months for document exchange, depositions, and potential motions.
- Trial: Trials usually occur 12–24 months after filing.
- Appeals: Additional 6–18 months if either side appeals.
Overall, a simple PIP lost-wages claim often resolves in 3–6 months. A contested third-party tort claim can span 1–3 years or more, depending on complexity and court availability.
Disclaimer: This article is for educational purposes and does not constitute legal advice.
Helpful Hints
- Keep detailed payroll records and employer statements.
- Submit proof of wage loss promptly to the insurer.
- Track all medical appointments and related expenses.
- Note deadlines: 1-year limit for PIP suits, 3-year limit for tort suits.
- Consult a qualified attorney early to assess your case.