Provides relative to a claimant's duty to mitigate damages with respect to the actions for recovery
Impact
The proposed legislation introduces a rebuttable presumption against claimants who do not utilize available health insurance to cover their medical expenses from injuries sustained in covered accidents. This means that if a claimant fails to use their health insurance, they may be seen as having not mitigated their damages, which could lead to reduced compensation. This shift places a significant burden on claimants, requiring them to prove that their failure to use insurance was reasonable under specific circumstances to avoid a reduction in their damage award.
Summary
House Bill 440 seeks to amend existing laws regarding the claimant's duty to mitigate damages specifically in the context of automobile liability insurance. The bill proposes to shorten the period within which claimants can report injuries from three years to two years following an automobile accident. This is intended to streamline the claims process and encourages prompt reporting of medical expenses related to accidents, thereby impacting how claimants interact with their insurance providers.
Sentiment
The sentiment surrounding HB 440 appears mixed. Supporters may argue that the bill encourages accountability and responsible use of available health resources, ultimately benefiting the insurance system and reducing costs for insurers. However, opponents express concern that the law disproportionately affects those without comprehensive health insurance or those who are unaware of their insurance options, potentially leading to reduced access to necessary medical care and inadequate compensation for genuine medical expenses.
Contention
Notably, the bill excludes cases involving medical malpractice claims from its stipulations. Critics argue that this detail highlights potential gaps in consumer protection and raises questions about the fairness of imposing a duty to mitigate damages without robust safeguards for vulnerable populations. Furthermore, the requirement for claimants to prove their reasoning for not using health insurance creates additional hurdles in accessing rightful compensation, which could lead to protracted legal disputes and complicate recovery after an accident.
Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).
Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).