What happens when an employee is injured on the job while operating a motor vehicle? This situation merges two areas of law: (1) Michigan Workers Compensation, and (2) Michigan No-Fault Automobile Insurance.
Under workers compensation, injured employees are entitled to “80 % of after-tax average weekly wages” (aprox 66% of the gross wages) at the time of the injury.
Under No-Fault, the injured motorist is entitled to 85% of the income lost during the first three years of disability. Thus, a difference in disability wage loss benefits, with No-Fault paying a higher benefit. Workers compensation is primary and No-Fault Automobile Insurance usually obligated to pay the difference.
Often the injured worker does not know that No-Fault Automobile Insurance is payable in addition to Workers Compensation or that the claim must be filed within
one year of the accident.
Awareness of the interplay of the two areas of law, Workers Compensation and No-Fault Automobile Insurance, is crucial.
If you know of anyone injured in a motor vehicle accident and receiving workers compensation, tell him or her of the added benefits available.