Work Loss – payable for up to 3 years

The statute reads that your no-fault insurance benefits pay for “work loss consisting of loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he or she had not been injured.” Put another way, if you are injured in a Michigan automobile accident and you are unable to return to your job because of the injuries you sustained from the automobile accident, your insurance company is obligated to pay your lost wages up to three years. Of course, you would need a doctor’s note stating that you cannot return to work and proof of your wages. Under the statue, work loss benefits are payable at the rate of 85 percent of your gross pay, including overtime, and further, the monthly amount you receive cannot exceed the monthly maximum ($4,589.00 in 2007). The monthly maximum is adjusted in October of every year to reflect the cost of living.   The following are the last seven years reflecting the monthly maximum amount.

October 1, 2000 through September 30, 2001 - $3898 per month.

October 1, 2001 through September 30, 2002 - $4027 per month.

October 1, 2002 through September 30, 2003 - $4070 per month.

October 1, 2003 through September 30, 2004 - $4156 per month.

October 1, 2004 through September 30, 2005 - $4293 per month.

October 1, 2005 through September 30, 2006 - $4,400 per month

October 1, 2006 through September 30, 2007 - $4,589 per month.

If you are injured in an automobile accident, you may be entitled to excess wage loss. This comes into effect when your monthly earnings exceed the monthly maximum listed above. For example, if you are a surgeon and earn $20,000 per month, you would not be fully compensated by your no-fault insurance company because the maximum amount they would be obligated to pay you would be $4,589 per month as of 2007. The amount you are not paid ($15,411 per month) is called “excess wages” and is recoverable through a tort liability claim which is against the at-fault driver’s automobile insurance. 

If you were injured in an automobile accident during the scope of your employment, worker’s compensation will be responsible to pay 80% of your net gross pay; your no-fault insurance company will still pay 85% of your gross pay but will receive a set-off against the amount paid by your worker’s compensation. 

If at the time of the automobile accident, you were looking for work or were temporarily unemployed, your automobile insurance company is still obligated to pay benefits.