NO FAULT (PERSONAL INJURY PROTECTION) BENEFITS

In Minnesota, a person injured in a motor vehicle accident is usually entitled to receive "No-Fault benefits" (also known as "Personal Injury Protection benefits"). These benefits are available regardless of who caused the accident, and include benefits for reasonable medical expenses, lost income, replacement services (such as replacement housekeeping services), rehabilitation expenses, and funeral expenses. There are limits to these various benefits.

Most injured people receive No-Fault benefits from insurance policies which name them as an insured or from policies naming a relative they live with. However, there are exceptions to this general rule, and some injured people are entitled to No-Fault benefits from other sources.

Minnesota Statutes §72A.20 Subdivision 23(d) provides that an insurance company should not use the payment of No-Fault benefits against a person, if that person was 50% or less responsible for the accident.

If an insurance company refuses to pay No-Fault benefits it is obligated to pay, the injured person can resolve the dispute through binding arbitration, provided the amount in dispute is $10,000 or less at the commencement of arbitration. If the amount in dispute is more than $10,000, the injured person can commence a lawsuit against the insurance company.

The insurance company may require that notice of the accident, and that No-Fault benefits might be sought, be given to them within six months after the accident. Failure to give a required notice might result in the loss of benefits if the insurance company was prejudiced by the lack of notice.

In addition, an injured person might lose his or her right to receive No-Fault benefits if there has been a one year lapse in treatment and disability.