Protected: New Personal Injury Protection (PIP) Law Affects Auto Accident Claims

A new Personal Injury Protection (PIP) law, effective January 1, 2013, may affect treatment and limit insurance payouts for auto accident claims.

New Law In Florida May Reduce Accident Injury Claim Payments

This past spring the Florida legislature, in conjunction with Governor Rick Scott, passed a new law that may limit Personal Injury Protection (PIP) insurance payouts when it takes effect January 1, 2013. The House Bill 119, which is seen as being favorable to the auto insurance industry, was passed by one vote in the Florida Senate.

PIP is a type of insurance that covers lost wages and medical expenses resulting from motor vehicle accidents. Previously, the PIP law covered $10,000 in lost wages and medical expenses with a deductible if the policyholder chose one.

The amount paid for medical expenses was based on the necessity and reasonableness of the care of injuries related to an automobile accident.

The new law places several obstacles to policyholders to receive the full ten thousand dollars in medical coverage. These include:

• The insured must seek medical treatment within fourteen days of the accident. PIP will not pay any medical expenses if treatment isn’t sought in this two-week period.
• PIP payments will be capped at $2,500 if the medical treatment is not for an “emergency medical condition.” This is defined as either serious impairment to bodily function, serious jeopardy to patient health, or serious dysfunction of any organ or body part.
• Acupuncture and massage therapy are not covered for any reason any longer
• The impact will be to reduce PIP medical payments as well as reduce compensation from claims for bodily injury in Florida.