Auto Insurer Must Pay PIP Claim Despite Other Auto Insurer in a Higher Priority
Plaintiff, a Michigan personal injury protection (PIP) auto claimant, filed a claim with Defendant insurer for injuries arising from a May 6, 2016 motorcycle versus truck accident which left him badly injured. Plaintiff was the motorcyclist. Ordinarily, the insurer of a motor vehicle (or truck in this case) is first in priority for paying PIP benefits to an injured motorcyclist under the law prevailing in 2016. However, the Plaintiff could not identify the insurance company for the truck; nor could he have done so without legal proceedings. Thus, he filed his PIP claim with his own insurer (Defendant insurer).
After Plaintiff made a claim with his own insurer, the Defendant insurer failed to respond. Suit was filed by Plaintiff within the one (1) year statute of limitations. During litigation, the Defendant insurer identified the insurance company for the truck. This was done by issuing a Subpoena for the truck driver to appear at a deposition during which time he revealed the name of the other insurer. By this time, however, Plaintiff could not pursue that insurer because the statute had expired.
The Defendant insurer correctly argued that it was not first in priority. However, rather than advising the claimant that it was denying the claim, the Defendant insurer “went silent.” Plaintiff was prejudiced by Defendant insurer’s failure to respond. Had it done so, the Plaintiff would have known to take other action. The Supreme Court instructed that the Defendant insurer should have notified the Plaintiff that it was denying the claim for lack of “reasonable proof.”
Although it was not first in priority, the Michigan Supreme Court held that the Defendant insurer was liable to pay the PIP claim. The Michigan Supreme Court stated “we refuse to reward [the insurer] for its gamesmanship.” The Court felt Plaintiff diligently pursued his claim against the only identifiable auto insurer – which happened to be the Defendant insurer.
Read entire case at: Griffin vs. Trumbull Insurance Company
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