MCCA Announces Vehicle Insurance Refund, But Do Motorcycles Get A Refund, Too?

MCCA Supports Refund Checks to Consumers
By Jason Waechter, THE Motorcycle Lawyer sm 
Written November 6, 2021
 
On November 3, 2021, the Michigan Catastrophic Claims Association (MCCA) announced support for consumer refunds.  The announcement was in the form of a short eight- sentence press release.
 
I have read and heard all kinds of inaccurate details from legitimate news organizations. A big one was that the amount is expected to be $600 per policy.  This specific detail blows my mind because there’s really no basis for it.
 
The eight-sentence press release from the actual source-- the MCCA states this:
1. MCCA Board supports a refund.
2. MCCA supports issuing refund checks to Michigan consumers.
3. Details on the amount and when will come in the next several weeks.
4. The goal would be to issue the largest refunds while maintaining sufficient funds to still care for the catastrophically injured.
 
That’s it!  That is all the substance there was in the press release. 
 
Notice that it does not even say that there will be a refund. It says the board supports one.  There is no amount mentioned and they don’t say when.  It says, the DETAILS, not the refund, will come in the next several weeks.
 
So where does all the misinformation come from?  Well now politicians have to comment and people then hear what they want to hear.  There are reports of a $600 refund per vehicle.  This comes from the Governor’s staff doing math to guestimate and to say something.  They seem to have taken the $5,000,000,000 surplus of the fund and divided it by the number of qualifying ‘cars’ (this includes motorcycles in my opinion).
 
Click On Detroit reported Governor Whitmer as saying, “Our rudimentary numbers look like it’s about $600 per policy. A $600 check in pocket. That can make or break a family that is living paycheck to paycheck.”
 
While the Detroit Free Press reported ‘Based on comments Monday by Kevin Clinton, the MCCA’s Executive Director, the refunds are likely to average at least $100 per vehicle.”  This seems more likely.
 
WHAT ABOUT MOTORCYCLISTS?  The no-fault law’s section pertaining to the MCCA is found at MCL 500.3104 and within it “car” is defined to include motorcycles and that is why motorcyclists were included in paying an MCCA assessment and have paid one for years and years.
 
After the law changed in 2020 only motor vehicle drivers (cars, trucks and vans) that chose UNLIMITED for their PIP Medical choice were charged the MCCA assessment while all motorcyclists were charged it.  
Based on the above, it is my opinion that motorcyclists will be included in the refund.
 
See my article The MCCA Assessment—Bikers Shafted Again! (also appears on Thunder Roads Magazine).
 
What is the MCCA?
 
The Michigan Catastrophic Claims Association (MCCA) is a private nonprofit unincorporated association.  It was created by the state legislature in 1978.  Michigan’s unique auto insurance no-fault law for over 40 years provided unlimited lifetime coverage for medical expenses which resulted from auto accidents.
 
The MCCA would reimburse insurance companies for any amount it paid over a certain retention amount.  The current retention amount in 2021 is $600,000.  The MCCA charges the insurance companies an assessment “equal to the member’s [insurance company] total written car years of insurance…” to fund these reimbursements and the insurance companies passed along the assessment to its insured’s.
 
The unlimited lifetime medical coverage changed in 2020 when Michigan went to  PIP medical choice.  Motorists could still choose unlimited for their PIP medical or a lesser amount of 500,000 or $250,000.  Certain qualifying individuals could opt out of this coverage entirely.
 
For detailed information about the MCCA see our free eBook Here
 
 
I have copied and pasted the press release below so you can read it and come to your own conclusions.
 
MCCA Board Announces Support for Consumer Refunds Resulting from Auto No-fault Reforms
 
Livonia, MI – Today, the Michigan Catastrophic Claims Association (“MCCA”) Board released the following statement: 
Bipartisan reforms passed by the Legislature and signed by the governor are clearly working and generating much-needed savings for consumers after years of skyrocketing auto insurance costs.
 
No-fault reform legislation has cracked down on widespread fraud, reined in costs through the implementation of a fee schedule and created more choices for consumers. It has attracted more competition to the market and allowed previously uninsured individuals to afford insurance for the first time ever, creating a more stable, sustainable and equitable market.
 
And while Michigan consumers still have access to the most generous medical benefits through their auto insurance in the nation, there is no doubt that reforms enacted by the Legislature and signed by the governor are working to provide relief to consumers and reduce the cost of auto insurance. Michigan consumers will continue to be the primary beneficiaries of these important reforms, as they should be.
 
Today, the MCCA unanimously voted to support issuing refund checks to Michigan consumers. Details on the specific refund amount per vehicle, along with a proposed timeline and logistics, will be announced in the next several weeks. The goal is to issue the largest possible refunds to consumers while maintaining sufficient funds to ensure high-quality care to those who have been catastrophically injured.