In an effort to find additional revenue sources for the State Budget, the Michigan House of Representatives is considering eliminating an $80 million tax credit the auto insurance industry has been taking advantage of for the past few years. Speaker of the House Kevin Cotter has stated that if this tax credit is removed, auto insurers must be "given" something is return.
Speaker Cotter's "peace offering" to the insurance industry is proposing that all claims in the Assigned Claims Fund be capped at $275,000, instead of the current lifetime care for all reasonable and necessary medical and rehabilitation expenses related to the injuries sustained in the auto accident.
The Assigned Claims Fund was established to ensure that drivers and pedestrians who are hit by an uninsured driver will still have access to the Personal Injury Protection (PIP) benefits provided under Michigan Auto No-Fault. Proposing to cap the medical care and rehabilitation needs of someone who was catastrophically injured by a driver who violated Michigan law and drove without valid insurance only further punishes the accident victim for a situation they had no control over.
While it is important for the State of Michigan to find additional revenue sources to offset a decline in revenue projections, balancing the state budget at the expense of auto accident victims is just wrong. Please take a few moments to contact your State Representative and ask them to oppose any cap on Personal Injury Protection benefits.
This link will take you to a website where you can sign a letter and send it to your State Representative. - http://capwiz.com/biami/home/