New York Automobile No-Fault Law
By Jonathan B. Nelson, Attorney at Law
New York’s automobile No-Fault Law was enacted to ensure that insurance companies would pay for legitimate accident related medical expenses, lost earnings and incidental costs, regardless of who was to blame. The purpose behind the law was to speed compensation without the necessity of long, drawn out litigation over fault and amounts owed.
The way No-Fault is designed to work in New York is that, regardless of fault, an insurance company is required to pay drivers, passengers and pedestrians up to $50,000.00 for the legitimate economic losses. But in 2002, a revised New York State insurance regulation set several traps to which the consumers of New York can easily fall prey.
There are three important steps to follow in order to increase your chances that the insurance company will pay No-Fault benefits in the manner that the No-Fault law was designed:
1. In order to qualify for No-Fault benefits, you must file a No-Fault Application (form NF-2) with the insurance carrier of the car you were in when the accident took place. If you were a pedestrian, you should send the form to both the insurance carrier of the car that hit you and the insurance carrier of a car that you own (if you own a car). When you speak to your insurance company, ask for the form. They won’t always send it to you automatically because they know of the time contraints.
There are serious time constraints, so, if you are in an accident, it is especially important not to delay filing the No-Fault Application. You have thirty (30) days from the date of the accident to file the form. Don’t put it off thinking that your injuries may get better or that your health insurance will cover the accident. First, filing the application does not obligate you to commence a claim. Second, most health insurance do not cover injuries resulting from a car accident. Filing the form simply protects your rights.
Additionally, make sure that you send the form to the correct insurance company. Even if the accident was the other car’s fault, the No-Fault Application gets sent to the insurance carrier for the car you were in.
There are occasions where a pedestrian may not be able to ascertain the insurance company of the car that struck him or a driver of a car is particularly uncooperative and will not provide the information. First, try to get a copy of the police report. The police report should have a three digit code which will tell you the insurance carrier. If you still cannot find the insurance company, the new regulations do allow you to provide written proof of a “clear or reasonable” reason for missing the deadline. But, the insurance companies are largely responsible for determining what is “clear or reasonable” so don’t count on this provision helping you too much.
2. If you cannot determine the insurance company on time, you should, at a minimum, send a notice right away to the New York State Motor Vehicle Accident Indemnification Corporation (MVAIC). MVAIC is a state run agency which steps into the shoes of the insurance company where there is no insurance. If you find out the identity of the insurance company after you file with MVAIC, you may always withdraw your claim with MVAIC. The consumer should not be lulled into a false sense of security, however. MVAIC does not pay claims lightly. It is a state agency and is full of bureaucratic paperwork.
3. If you are claiming lost earnings and out of pocket expenses, you will need to take additional steps to ensure payment of your claim. First, for lost earnings, you must make sure that your employer sends in proof of your wages, disability and loss of income within ninety (90) days of the accident. You may need to be on top of your boss to get these documents filed. Remember, under No-Fault you are entitled to receive 80% of your accident related lost earnings up to $2000 a month paid over a maximum of three years.
Additionally, save all your receipts for car service, personal assistance, etc. Insurance carriers won’t take your word for how much money you spent for accident related out of pocket expenses. So, get receipts for everything. Make photocopies and submit the copies on a weekly basis. You should always confirm that they were received by the claims representative. If there is any question, make another set of copies and send them again. These out of pocket expenses often get ignored at first by the insurance company because they know that it is the first type of expense that the consumer may forget about. Stay on top of it and you increase your chances of recouping the money you spent.
About the Author:
The Law Offices of Jonathan B. Nelson, P.C.
Personal Injury Attorney in New York
225 Broadway, Suite 2400
New York, NY 10007
Phone: (212) 791-0441
Email: law@nelson-law.com
Website: www.nelson-law.com
