Report No. 85
Payment of benefits under the Uniform Act.- With two exceptions, the basic reparation benefits of a basic reparation insured are always paid by his own insurance company.1 A basic reparation insured is a person identified by name as an insured in a contract of basic reparation insurance, his spouse, or other relative residing in the same household, and a minor in his custody or the custody of a relative residing with the named insured. An exception to the general rule is made for injuries to the driver or other occupant of a vehicle that occur while the vehicle is being used in the business of transporting persons or property.
The other exception is an injury to an employee, his spouse, or other relative residing with him, if the accident causing the injury occurs while the injured person is driving or occupying a vehicle furnished by an employer. In both of these cases the insurance covering the vehicle is responsible for the benefits. An injured person who is not a basic reparation insured recovers basic reparation benefits from the insurer of the vehicle he occupied or if, a pedestrian, from the insurer of any involved vehicle. The insurer paying basic reparation benefits to an uninsured pedestrian is entitled to contribution from the insurers of all involved vehicles. An unoccupied parked vehicle is not an involved vehicle unless it was parked so as to cause unreasonable risk of injury.
1. Bombaugh Uniform Motor Vehicles Accidents Reparation Act, (1973) 59 American Bar Association Journal 45, 47.