Statutory Disqualifications

Statutory Disqualifications from Receiving Michigan PIP Benefits

Under the Michigan No-Fault Insurance Act, even if you meet the requirements to be entitled to PIP no-fault insurance benefits, you will not recover these benefits if you are statutorily disqualified. M.C.L. 500.3113 outlines three categories of statutory disqualification: (1) stolen vehicles; (2) uninsured vehicles; and (3) injuries involving certain foreign residents.

Statutory Disqualification — Stolen Vehicles

Section 3113(a) states that a person is not entitled to PIP benefits if:

The person was using a motor vehicle or motorcycle which he or she had taken unlawfully, unless the person reasonably believed that he or she was entitled to take and use the vehicle.

Reading this language, it should be noted that only the vehicle thief would be statutorily disqualified from entitlement to PIP benefits, not other occupants of the stolen vehicle or innocent third-parties injured by the use of the stolen vehicle.

The distinction between “unlawful taking” and “unlawful use” has been the subject of many Michigan cases. Contact an expert Michigan car accident lawyer if you have any questions about this distinction.

Statutory Disqualification — Uninsured Owned Motor Vehicle

Section 3113(b) states that a person is not entitled to PIP benefits if:

The person was the owner or registrant of a motor vehicle or motorcycle involved in the accident with respect to which the security required by section 3101 or 3103 was not in effect.

This disqualification is the most litigated disqualification, however, note that this disqualification only applies to owners of uninsured vehicles. There are two ways a person can become an “owner” for purposes of the Michigan No-Fault Insurance Act:

  1. by having “the use” of a motor vehicle for more than 30 days; or
  2. by being the titleholder of the motor vehicle.

Also note that disqualification can only occur if the uninsured motor vehicles is “involved in the accident.” This is an issue that has frequently been the subject of intepretation by the Michigan courts. Please talk to an expert Michigan car accident attorney to understand if your uninsured motor vehicle was “involved in an accident.”

Statutory Disqualification — Non-Residents

The final disqualification involves certain non-residents who are injured in Michigan. Under the Michigan No-Fault Insurance Act, Section 3113(c), a person cannot recover PIP insurance benefits if:

  1. he or she is an out-of-state resident;
  2. was occupying a motor vehicle not registered in Michigan; and
  3. he or she is not insured by an insurer that has filed a certification in compliance of Section 3163.

If you or someone you know was recently injuried in a car accident and you would like to know your rights and what you are entitled to collect, please set up a free case review with one of the leading expert car accident law firms in Michigan.