The New York state no fault law was enacted to lower the extraordinary cost of the lawsuits over accidents while swiftly making payments for the injured. The law states that the insurance company of the victim will pay for the claim and the perpetrator’s insurance company will also pay for it but they compensate it by increasing the insurance premium. The driver with fault would have to cope with the money for the insurance and but in theory there is a chance accident might have happened to faults on both parties and this evens out the insurance claims.
Critics of the New York State No Fault Law.
Critics claim that this New York No Fault Auto Insurance Law mostly won’t punish the irresponsible reckless drivers as the litigation usually won’t have a jury award or any legal settlements also. The basic definition of this law is that if there is an economic loss means there would be a litigation process and a settlement of up to fifty thousand dollars per person. And the settlement may also include:
Medical, hospital expenses under The public health law of article forty-one
Psychiatric and physical therapy if needed.
Any other form of professional health services without the limitation of time (mostly within one year of the date of accident).
Loss of earnings if the victim had performed if he/she has not been injured.
An additional option to purchase an insurance premium for not more than twenty five thousand dollars.
The economic losses will be detected from the current applicable insurance policy.
The section of basic economic loss won’t include any losses incurred on the account of death. This law defines the motor vehicle as in the section of three hundred eleven of the vehicle and traffic law which also includes fire and police vehicle but it doesn’t include the motor vehicle which carries any financial security pursuant.
New York No Fault Auto Insurance law’s actions for personal injuries
If the driver or the persons in the call has incurred personal injuries due to the accidents then the law states that it can be covered by financial means but if it is by negligence in the use or operation of the vehicle then there is no right to recover the economic loss benefits (exception for serious injuries). If the action is done by an insurance covered person on a non-covered person, then the insurance covered person should pay for the losses which are liable for the first person benefit section.
Incidents based on New York No Fault Auto Insurance
Many studies have concluded that due to this law there is an increase in the number of drunk and drive incidents and a sharp increase in the overall fatality rates. With that being said, this law also brings about benefits like lower insurance premium. But this law is mostly abused by the victims who usually fabricate medical charges and exaggerate their injuries to increase the quick FIP payment value to more than $10,000.
Clear understanding of this interesting and significant legal provision can come extremely handy during the times of crisis.