GEICO Reimburses Client for Lost Wage Claim

Frank Dito — Mon, 23 Nov 2009 23:22:13 +0000

I have blogged earlier about a matter where the client’s claim for lost wage benefits resulting from a car accident was denied. After looking into the denial and reviewing my client’s insurance policy, it was apparent that when she purchased her car insurance, GEICO excluded lost wage coverage from her policy for a cheaper rate. The reduction in her premium amounted to $18.00 per year. Understanding the New York State no-fault law, GEICO, or any other insurer, is required to include in every policy of car insurance written in New York State, protection for Basic Economic Loss. Basic Economic Loss provides for medical care and treatment and lost wages, as well as “other necessary” expenses, if you are injured through the use or operation of a motor vehicle. These basic protections are mandated by law and I began to question GEICO’s ability to exclude these protections. Despite numerous phone calls, GEICO continued to deny the client lost wage benefits based on the exclusion in the policy. I told the client that despite what GEICO claimed, they could not issue such a policy of insurance.

I researched the New York State Department of Insurance General Counsel opinions and found a strikingly similar issue. The opinion was issued in response to a request by a consumer asking if he was able to negotiate a cheaper insurance policy by excluding lost wage protection from his coverage. The General Counsel opinion made it clear that what the consumer proposed could not legally be done in New York state. Every insurance policy must include coverage for Basic Economic Loss.

I filed for arbitration to force GEICO to pay the client the lost wages, despite the policy exclusion. As an exhibit, I attached the New York State Department of Insurance General Counsel opinion. GEICO was due to answer the arbitration request on November 20, 2009. Instead of an answer, I received a phone call from an adjuster agreeing to settle the claim for the full amount owed. Despite the opinion, GEICO defended their actions and still maintained that the policy as sold was permitted in New York.

This case should be a reminder to all to use an insurance broker or read the terms of your policy if you decide to buy online or over the phone. I have published a book, “A Lawyer’s Guide to Car Insurance”, to help you understand your insurance policy and to make sure that you are properly protected. You can order the book, free of charge, by following this link.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Insurance Companies Removing Basic No-Fault Protections

Frank Dito — Mon, 04 May 2009 14:52:51 +0000

I have spoken with more and more clients recently about how insurance companies are allowing their insureds to opt-out from basic No-fault protections. No-fault protection was enacted by the New York State Legislature to provide medical and financial benefits to anyone who was injured through the use or operation of a motor vehicle. Every insurance policy written in the State of New York MUSTcontain these basic benefits,which include medical treatment and lost wages from work. It is apparent that for the sake of advertising lower insurance rates, companies are removing benefits, specifically lost wage reimbursement, from the basic New York insurance policy. Unfortunately, clients are not aware of how important this coverage is until after they have had a car accident and are unable to return to work. They should be receiving up to $2,000 a month for their lost time from work but instead receive a denial notifying them that their policy does not include this protection. The insurance companies remove this important benefit so they can advertise a cheaper rate – but by only $25! Clearly this does not benefit the insured but only the insurance companies and their bottom line. With online and TV advertising becoming the way insurance companies sell their policies, it has become increasingly difficult to compare two insurance policies. People buy insurance based on the bottom line and really don’t understand how insurance works until it too late.

Decker, Decker, Dito & Internicola, LLP is currently seeking a ruling from the American Arbitration Association that the insurance companies are not allowed to remove these basic benefits from their insurance policies. Please continue to check back here for updates on this very important issue.

If you have been hurt in a car accident and have been denied no-fault benefits, please contact Frank J. Dito, Jr. at (800) 310-5520 to discuss your legal rights or call for my free book, A Lawyer’s Guide to Car Insurance.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Staten Island, New York Child Injury Lawyer Blog | Brooklyn Child Accident Attorney » arbitration

GEICO Reimburses Client for Lost Wage Claim

Insurance Companies Removing Basic No-Fault Protections