New York Comprehensive Motor Vehicle Insurance Reparations Act

New York is one of about half the states in the country that have enacted 'no-fault' insurance laws that require residents to purchase coverage that provides, in the event of an accident, for limited medical and income replacement from their own insurance company.

In New York, the provisions are covered under the New York Comprehensive Motor Vehicle Insurance Reparations Act. Under this act, the recovery for 'basic economic loss' is paid by the driver's own insurance company or the 'first-party' insurance company. This insurance benefit is provided regardless of who is responsible or at fault in the accident.

The basic economic loss recoverable under the law includes any actual expenses for medical care, a portion of lost earnings and other necessary expenses up to a maximum of $50,000 per person. The law prohibits an injured party from suing the person responsible for the accident and does not allow for any reimbursement for pain and suffering unless the accident caused serious injury as defined under the law. The following nine injuries are defined as serious injuries under the law:

• Death
• Dismemberment
• Significant disfigurement
• A fracture
• Loss of a fetus
• Permanent loss of use of a body organ, member, function or system
• Permanent consequential limitation of use of a body organ or member; significant limitation of use of a body function or system
• Significant limitation of use of a body function or system
• A medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person's usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment

The New York Comprehensive Motor Vehicle Insurance Reparations Act was enacted to ensure that an injured person receives prompt medical treatment and income replacement without the burden of a law suit. Proponents of the law, including legislatures and insurance companies, hope it will reduce the number accident related suits handled by the courts and ultimately lower insurance premiums. Critics argue that the law does not adequately punish negligent drivers and often makes it difficult for those with a legitimate claim to be fairly compensated for their pain and suffering. In reality, some states have repealed their no-fault laws after discovering the legislation has failed to reduce the cost of insurance or the number of automobile related litigation cases brought before the courts.

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