Warning - legalese alert. This blog is written more for my Michigan auto accident lawyer and insurance claims adjuster readers. But it addresses an extremely important issue that impacts every economic claim made in every auto accident trial that lawyers in Michigan are making today.
Every auto accident case I’ve ever tried that has had an economic claim also had an excess replacement services claim. For those of you who are unfamiliar with the term, we tell our clients that replacement services are help with services you would have normally performed if you were not injured in an auto accident.
Replacement services claims here have two different, but interrelated meanings. There is the No-fault insurance claim made with your own auto insurance company for replacement services. They are paid at $20 per day, and limited to three years under the Michigan No Fault Act.
Then there is the excess replacement services claim. The excess replacement services claim arises after the first three years of No-Fault, if the auto accident victim is still disabled due to his or her injuries and can’t perform these services. This can also be an excess claim, over and above the $20 per day that the insurance company must pay in replacement services during the first three years.
That’s because the $20 per day for replacement services was set by statute in 1973, but was never indexed to inflation
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