Report No. 85
Unique aspect of Michigan law-Proprietary loss.- The unique aspect of the Michigan legislation is its compulsory "property protection insurance", which pays property losses, irrespective of fault, upto a maximum of one million dollars. (iv) New York.- In New York, the Comprehensive Automobile Insurance Reparations Act1 passed by the State legislature in January 1973 is similar to the Michigan plan, but provides no death benefits and no property damage coverage.
It pays medical, hospital and associated expenses, and psychiatric costs, as well as the cost of physical and occupational therapy and rehabilitation. Lost earnings have a 20% deduction. The maximum is 50,000 Dollars per claimant2. The New York plan pays upto $ 25 a day for other necessary expenses for a maximum of a year. Damages for non-pecuniary losses are limited to cases of serious injury. The right to bring an action in negligence is saved, but there can be no recovery for any loss covered by the personal injury insurance.
1. McKinney's Insurance Law, Article XVIII, section 670, et seq, (effective Jan. 1, 1974).
2. Hepple Tort, (1979), 726, footnote 1.