If you drive a motor vehicle in the state of New York these rules pertain to you in the event of an automobile accident. The law was signed into law in 1973 and its purpose is to make sure motorists get compensated quickly and substantially as a motor accident victim. This law relates to personal injury and not physical damage to motor vehicles. There are quite a few idiosyncrasies to this law and I’ll cover them below in summary.
What if I have the economic loss due to a motor vehicle accident? How does the New York no-fault law pertain to me?
The no-fault law is applicable only to cars and not to motorcycles. Motorcycles were probably excluded because of the high frequency of accidents for those vehicle types. There is something called First Party Benefits which is meant to reference persons that qualify for the New York no-fault law. This pertains to persons occupying vehicles or pedestrians injured by a party with insurance. Basically if you are the victim of an auto accident and the other driver isn’t insured you aren’t entitled to getting really any compensation unless you sue the other party or there is some other type of full coverage that would apply on your end.
What types of things aren’t covered under the New York no-fault law?
Anyone who is injured due to his or her intentional act against his or herself is excluded. When the accident happened you can’t have been drinking or have been intoxicated in any way. And yes, if you are committing a felony or running from the police you will be excluded. Also if your street racing or doing a speed test in your vehicle you are unable to be covered under this law. Lastly if you are operating a stolen vehicle you are also disqualified. The exclusion is not automatic but these guidelines above are the basis for qualification or disqualification. These pertain specifically to the driver of the vehicle so passengers that are victims in the automobile can still qualify for claims due to the drivers conduct.
What is a First Party Benefit relating to the New York no-fault law?
A first party beneficiary is basically someone who qualifies and hasn’t been excluded. These persons can be anyone involved in an accident that has damages caused by an insured party. These are typically related to economic loss arising out of the use of a motor vehicle. Basic economic loss for an individual can be up to 50,000 per person. Items that are included are necessary expenses for medical within 1 year of the injury. Loss of earnings and reasonable necessary expenses relating to normal income and can be up to 2,000 per month for up to three years. Other miscellaneous expenses can be $25 per day and not more than a year after the accident. There is also an option to purchase an additional $25,000 of coverage through the New York no-fault law which the insured can use to offset loos of earnings from work and or psychiatric, physical or rehab beyond the initial $50,000 and only after that loss has been exhausted.