MCL § 500.3108 – Work loss and survivors’ loss benefits under PIP
Table of Contents
Code Details
Chapter 500
Act 218 of 1956
218-1956-31
Exact Statute Text
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500.3108 Survivor’s loss; benefits.
Sec. 3108.
(1) Except as provided in subsection (2), personal protection insurance benefits are payable for a survivor’s loss which consists of a loss, after the date on which the deceased died, of contributions of tangible things of economic value, not including services, that dependents of the deceased at the time of the deceased’s death would have received for support during their dependency from the deceased if the deceased had not suffered the accidental bodily injury causing death and expenses, not exceeding $20.00 per day, reasonably incurred by these dependents during their dependency and after the date on which the deceased died in obtaining ordinary and necessary services in lieu of those that the deceased would have performed for their benefit if the deceased had not suffered the injury causing death. Except as provided in section (2) the benefits payable for a survivors’ loss in connection with the death of a person in a single 30-day period shall not exceed $1,000.00 for accidents occurring before October 1, 1978, and shall not exceed $1,475.00 for accidents occurring on or after October 1, 1978, and is not payable beyond the first three years after the date of the accident.
(2) The maximum payable shall be adjusted annually to reflect changes in the cost of living under rules prescribed by the commissioner. A change in the maximum shall apply only to benefits arising out of accidents occurring subsequent to the date of change in the maximum. The maximum shall apply to the aggregate benefits for all survivors payable under this section on account of the death of any one person.
MCL § 500.3108 Summary
This Michigan statute outlines the specific benefits available under Personal Protection Insurance (PIP) for what is termed “survivor’s loss” following a fatal automobile accident. It specifies that these benefits are paid to the dependents of a person who died due to an accidental bodily injury covered by no-fault insurance. Survivor’s loss includes two main components: first, the loss of tangible economic contributions (excluding services) that the deceased would have provided for their dependents’ support during their period of dependency. Second, it covers expenses, up to $20.00 per day, for obtaining ordinary and necessary services that the deceased would have performed for their dependents’ benefit (e.g., childcare, household chores).
The statute sets limits on these benefits: for accidents before October 1, 1978, the maximum payable for a survivor’s loss in a 30-day period was $1,000. For accidents on or after October 1, 1978, this limit increased to $1,475 per 30-day period. Crucially, these benefits are only payable for the first three years following the date of the accident. Subsection (2) further clarifies that these maximum benefit amounts are subject to annual adjustments to account for changes in the cost of living, as determined by the insurance commissioner. Any change in the maximum only applies to accidents occurring after the adjustment date, and the maximum applies to the total aggregate benefits for all survivors of a single deceased person.
Purpose of MCL § 500.3108
The legislative purpose behind this Michigan no-fault statute is to provide essential financial relief and stability to families who suffer the devastating loss of a loved one in a car accident. When a person dies, their dependents often face not only emotional trauma but also significant economic hardship due to the cessation of the deceased’s financial contributions and the loss of invaluable services they provided to the household. This provision addresses a critical problem by ensuring that dependents receive some form of compensation for these losses through their Personal Protection Insurance (PIP), which is a cornerstone of Michigan’s no-fault system. It aims to mitigate the immediate financial impact by covering both direct economic support and the costs of replacing crucial services, thus preventing catastrophic financial strain during an already difficult time.
Real-World Example of MCL § 500.3108
Consider the tragic case of the Miller family. Mr. John Miller, the primary wage earner and caretaker for his two young children, was killed in a car accident in Michigan. His wife, Sarah, and their children were dependent on his income and the daily household services he provided, such as transportation, home maintenance, and childcare.
Under MCL § 500.3108, Sarah, as a dependent, can claim survivor’s loss benefits through their family’s no-fault insurance policy. This would include the lost income (tangible things of economic value) that John would have contributed to the family’s support. Additionally, Sarah could claim up to $20.00 per day for expenses reasonably incurred to hire someone to perform the ordinary and necessary services John would have provided, such as a babysitter or a handyman.
These benefits, adjusted annually for the cost of living, would be capped at a specific amount per 30-day period (e.g., $1,475 for recent accidents) and would be payable for a maximum of three years following the accident. This statute helps the Miller family by providing a crucial financial lifeline during the initial, most challenging years after John’s death, allowing Sarah to cover essential living expenses and service replacement costs as they adapt to their new circumstances.
Related Statutes
While this statute specifically addresses survivor’s loss, it operates within the broader framework of the Michigan No-Fault Act, particularly concerning Personal Protection Insurance (PIP) benefits. Several related statutes are commonly referenced alongside MCL § 500.3108:
- MCL § 500.3105 – Entitlement to personal protection insurance benefits: This foundational statute outlines who is entitled to PIP benefits in general, establishing the core requirement that benefits are payable for accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle.
- MCL § 500.3107 – Personal protection insurance benefits; allowable expenses; work loss; ordinary and necessary services: This statute details other primary PIP benefits. While MCL 500.3108 focuses on *survivor’s* loss, MCL 500.3107 covers “work loss” (income loss for an injured, non-fatally injured person), “allowable expenses” (medical care, rehabilitation), and “replacement services” (expenses for services the injured person would have performed for themselves or their dependents, for a living person). The distinction between a living injured person’s work loss and services (MCL 500.3107) and a deceased person’s survivor’s loss of economic contributions and replacement services (MCL 500.3108) is crucial.
- MCL § 500.3107a – Wage and salary verification: This statute relates to the documentation required for verifying a person’s lost wages or earnings, which can be relevant for calculating the economic contributions component of survivor’s loss, similar to how it applies to a living person’s work loss.
Case Law Interpreting MCL § 500.3108
Michigan courts have frequently interpreted MCL § 500.3108, particularly regarding the definition of “dependents,” the calculation of “contributions of tangible things of economic value,” and the scope of “ordinary and necessary services.” A landmark case that provided significant guidance on survivor’s loss benefits is:
- *Miller v. State Farm Mutual Automobile Ins. Co.*, 410 Mich. 538 (1981): The Michigan Supreme Court in *Miller* extensively analyzed the purpose and computation of survivor’s loss benefits under MCL 500.3108. The Court clarified that “loss of contributions of tangible things of economic value” refers to the loss of financial support the deceased would have provided to their dependents, distinct from their lost wages. It also addressed the calculation of lost services, affirming the $20-per-day limit. This case is pivotal in understanding how survivor’s loss is determined and allocated.
Why MCL § 500.3108 Matters in Personal Injury Litigation
MCL § 500.3108 is critically important in Michigan personal injury litigation, particularly in cases involving fatal automobile accidents. For plaintiffs, understanding this statute is paramount to securing fair compensation for families who have lost a loved one. Attorneys representing dependents must meticulously calculate the economic contributions the deceased would have provided, accounting for factors like income, future earning potential, and the deceased’s personal consumption. They also need to document and prove the expenses incurred for replacing services. The three-year limitation on benefits and the monthly caps require strategic planning and prompt action to ensure claims are filed and processed efficiently.
From a defense perspective, insurance companies and their legal teams will scrutinize claims to ensure they comply with the statute’s strict requirements, including proof of dependency, accurate calculation of economic loss, and adherence to the daily and monthly benefit limits. Disputes often arise over the exact amount of “tangible things of economic value” contributed, the necessity and cost of replacement services, and whether individuals qualify as “dependents” under the law. Both sides must be prepared to present strong evidence and arguments regarding the interpretation and application of this vital no-fault provision, making it a central focus in wrongful death claims arising from Michigan car accidents.