The Michigan Catastrophic Claims Association

The Michigan Catastrophic Claims Association (MCCA) is an unincorporated association that operates as a non-profit organization. It was formed by the Michigan State Legislature in 1978 because the smaller automobile insurance companies found it difficult to get reinsurance for no-fault policies. The aim of the MCCA was to help provide unlimited benefits that could last a lifetime for someone who was catastrophically injured in car accidents. As a result of the formation of the MCCA, the costs of these claims for catastrophic injury would be spread out among all the insured drivers in the state.

How Does the MCCA Operate?

Even though the MCCA was created by statute, it is a private association. The Association deals directly with the insurers in the state, and not with consumers. There is a Board of Directors that consists of five people from the top insurance companies in the state. These five people are appointed by the Commissioner of the Office of Financial and Insurance Regulation. The Commissioner of the OFIR is a non-voting member of the board.

The MCCA and Accident Claims

Michigan is the only state that has a no fault law that provides coverage for unlimited medical expenses for life of those injured in automobile accidents. The process works as follows:

• The MCCA reimburses the insurance company for any benefits over a set amount for a Personal Injury Protection claim.
• For July 1, 2011 through June 30, 2013, the set amount in $500,000 but that amount will increase to 530,000 on July 1, 2013, until June 30, 2015.
• Funding is received to support the MCCA as a result of the requirement that every insurance company in Michigan selling auto and motorcycle policies must be a member of MCCA. There is a yearly assessment of the estimated costs that is needed to fund the program and pay for future claims which is divided by the number of insured vehicles.
• When making the annual actuarial assessment, the MCCA looks at the rising costs of the products, services, and care necessary needed for the recovery and rehabilitation of insured people who have been severely injured.
• The premium that the Michigan Catastrophic Claims Association is collecting is $175 per vehicle from July 1, 2013 to June 30, 2013.
• If the claims from one year exceed the predicted amount needed for that year, the premium will be increased the next year to make up the deficit.

Who is Eligible?

Anyone who has an automobile or motorcycle no fault insurance policy in Michigan is covered for personal injury protection from the MCCA. To receive these funds, the individual insurance policy holder only has to file a claim with his or her insurance carrier. The insurance company will pay the claim for medical expenses and then turn in the paperwork for reimbursement from the MCCA.

Getting Help

If you have been involved in a serious or catastrophic car accident in Michigan, you may have many questions about the MCCA and about other aspects of your right to recover damages. You may want to speak with a qualified lawyer to understand your options.