Staten Island, New York Child Injury Lawyer Blog | Brooklyn Child Accident Attorney » no-fault

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.

Can Auto Insurance Companies “Discount” Basic Benefits?

Frank Dito — Thu, 29 Oct 2009 20:41:37 +0000

With the proliferation of online car insurance, consumers aren’t always aware of what insurance they are getting for their money. Most people I speak with tell me that they purchased their car insurance based upon price alone and didn’t compare the benefits between different policies. Aware of the price competition, insurance companies are doing their best to shave every dollar in order to gain you as a customer. One company in particular, GEICO, has allowed their customers a “discount” for New York Work Loss. This discount, on the policy that I have viewed, amounts to $9.40. What most people don’t realize is that the “discount” takes away certain basic benefits that the New York State Legislature intended you to you receive in the event you were injured in a car accident and could not work.

After I applied for lost wage benefits on behalf of my client, I received a denial based upon my client’s election of the “discount.” I felt that although the client did receive the discount, GEICO couldn’t reach such an agreement without violating the insurance law. Research disclosed a 2002 New York Department of Insurance General Counsel Opinion that addressed the exact question. The Opinion states that “New York State Law specifies the minimum requirements for motor vehicle financial security coverage as a matter of public policy.” Based upon this Opinion, I have filed for Arbitration to recover my client’s lost wages. Besides the, fact that a $9.40 discount cost my client over $12,000, insurance companies cannot be allowed to interfere with the legislatures intent. The benefits enacted as law refers to them as “basic” and as such are legally mandated. The matter is currently in Conciliation with GEICO’s response due by 11/20/09. I will provide updates on this case as they become available.

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

Universal Healthcare? How would it affect my Car Accident?

Frank Dito — Thu, 23 Jul 2009 13:55:35 +0000

You might be asking how President Obama’s health care plan would affect your car accident? You are probably not asking yourself that question because most Staten Island residents have never been involved in a car accident before and haven’t needed medical care after a car accident.

New York, as well as many other states, enacted a no-fault statute that took away some one’s right to start a lawsuit for injuries resulting from a car accident if they didn’t suffer a “serious injury.” A serious injury is something more than a bruise, but recent rulings have said that even herniated discs are not “serious” and you would be unable to bring a lawsuit. Despite your painful injuries, the legislature took this right away from you in exchange for providing some medical benefits to you.

The no-fault laws were enacted to stem the supposed tide of lawsuits brought on by the injured victims of car accidents. The widely accepted belief for the lawsuits was that since injured victims did not have medical insurance, they needed to started a lawsuit to help pay for their medical bills. Does the new health care bill take away the need for no-fault coverage? I believe that it does. Since everyone would be covered, there would be no need to include no-fault coverage in your insurance policy. Car insurance companies would be relieved of the burden to and auto insurance rates would drop dramatically. No longer would the car insurance companies be able to pridefully announce the bust-up of a no-fault fraud ring in New York. I am sure that they would pass that savings on to you. If you believe that, I have a nice bridge to sell you.

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.