MOTOR VEHICLE ACCIDENTS: No-Fault Coverage

If one is is involved in a motor vehicle accident and sustains injuries, one of first concerns to address is is how to pay one’s medical bills.  In New York, every vehicle is required to carry a policy of insurance. Included in such policy is coverage for medical bills, known as “no-fault” or “pip” (personal injury protection).  Minimum coverage is $50,000.00, which is a combination of coverage for both medical bills and loss of earnings. Some policies carry more coverage. A no-fault application MUST be filed with the appropriate company within 30 days of the accident. If the application is filed beyond the 30 day period, carriers may disclaim coverage unless there is a viable excuse for such delay. As part of the process, it must first be determined which insurance company is the the “no-fault” carrier in a particular scenario. Basically, an injured party files a no-fault claim with the vehicle he occupies at the time of an accident, whether that person is the vehicle owner, driver or a passenger. However, if one is a pedestrian and struck by a vehicle, that person must file a no-fault claim with the insurance company for the vehicle which struck him or her. In certain scenarios, the vehicle which would normally provided no-fault coverage has no insurance because such policy has lapsed or was cancelled. In that instance, if the injured person or a relative who lives in the injured person’s household owns a vehicle, a no-fault claim will be filed with insurance carrier for that vehicle. If no one in the household owns a vehicle, that person must file a claim with a state agency known as Motor Vehicle Accident Indemnification Corporation(“MVAIC”).