Overview:

1. When should bills be paid by an auto carrier?

A: If a "Motor Vehicle" is "involved" in the accident, the injured person is entitled to First Party or PIP (Personal Injury Protection) benefits. This includes payment of medical bills.

2. What are First Party or PIP (Personal Injury Protection) benefits?

A: "First Party" or "PIP" are phrases used by the insurance industry for the claims opened for medical bills, up to three years of wage loss, up to three years of replacement services (household chores, a.k.a. essential services), medical mileage and attendant care. These claims are made against an automobile insurance company.

3. How do I set up a PIP claim so I can submit bills for payment?

A: Get an Application for Benefits Form from the appropriate Auto Insurance Company, have the patient fill it out and send it back. Many companies now don't bother with the Application for Benefits Form and just set up the claim over the phone by speaking to the patient. The assigned PIP adjuster will then contact the patient within days of the call with the claim number, address and instructions for obtaining benefits. The claim must be filed within one year after the accident.

4. How do I know which auto insurance company has to pay the bills?

A: The Michigan No Fault Act (MCLA 500.3101 et. seq.) sets forth the rules for determining which insurance company pays under different circumstances. These rules are detailed on the following pages entitled No-Fault PIP Priorities.