Personal injury protection or no-fault insurance is one of the most important insurances that drivers should have. The purpose of this type of insurance is the immediate financial compensation without getting into the discussion about who caused accident. Property damage isn’t covered by PIP insurance. However, every affected person including driver, car’s passengers and the pedestrians injured due to car crash is entitled to receive up to $50,000. Purpose of providing this amount is to compensate for financial losses such as lost wages and other expenses such as medical bills.
The purpose of Personal Injury Protection
Personal Injury Protection insurance was made the part of insurance law to ensure that victims get proper rest and heal fast in order to be able to continue their routine jobs. This prospect of insurance law doesn’t require a victim to file a lawsuit. Nevertheless, the no-fault law in New York allows the victims to file personal injury lawsuits if their economic losses per person exceed $50,000.
Accidents on the roads outside New York may also be covered under PIP law as long as passengers and automobiles are insured under concerned New York State auto insurance policy.
The points below explain the features of basic PIP insurance.
- With this insurance plan, the injured person gets entitled to receive up to $25 per day. This amount basically covers necessary expenses such as transportation to and from medical center, and other household assistance. This entitlement lasts one year from the day of injury.
- Expenses for the treatment of injuries after accident are also compensated by appropriate funding.
- Up to $2,000 per month is usually reserved to cover the lost wages. Federal social society, worker’s compensation and New York State disability benefits legally approve these funds.
- $2,000, exclusive to $50,000, is paid to the family of person died in accident.
- If drivers and passengers were under influence at the time accident, they may not qualify for insurance. Emergency medical services would arrive at the place to provide immediate attention and insurer will pay for that. However, the insurer may ask for the full payment if driver is proven guilty of driving under influence.
- In case the persons in the car injured themselves intentionally, they disqualify for the insurance cover.
- Motorcycle riders aren’t given the insurance cover. Through the pedestrians injured due to motorcycle crash qualify for the cover.
- Insurance isn’t applicable when driver and other people in the vehicle were injured while committing a crime.
- Getting injured while driving or travelling in a stolen car is also the reason for disqualification for insurance cover.
- Insurance cover doesn’t apply when crashed vehicle isn’t insured.