MICHIGAN NO-FAULT PPI BENEFITS AND WHY MICHIGAN RAILROADS SLEEP NIGHTS

Michigan Lawyers Weekly published my article, DISRUPTED LIVES HOLD LINE ON INFLATION, in its March 10, 2008 issue. In writing that article about the $20,000 minimum bodily injury liability limit established by the Michigan No-Fault Act in 1973 (and unchanged since), I neglected to examine another mandatory coverage under the Act, and one again that has remained unchanged since '73.

Property Protection coverage (PPI) is part of your mandatory no-fault policy coverage, but is not to be confused with collision coverage, which covers the repair cost of your car (collision coverage is not mandatory). PPI coverage pays for damage your car does to other people's property, as opposed to damage your car does to other people's bodies. Remember, the required coverage limit for injury and death, is by law, $20,000. Property damage coverage has a required coverage limit as well, though you won't see it on your policy's declaration sheet. It is, and has been since 1973: (drum roll) $1,000,000!!

On a logical basis, what does this tell us? I have no idea. Kill somebody with your car, $20,000 should make the victim whole, and protect the negligent driver's assets. Cream a mailbox, and you have $1,000,000 in protection. Remember these policy limits were allegedly set based on the collective intellect and wisdom of our state legislators back in 1973, and no collection of Representatives and Senators elected since has seen fit to change that arrangement. Is it really the considered policy policy of our state that the value of a lost or damaged human life can be set at a figure of no more than $20,000, while the value of damage to a lifeless collection of brick, wood and metal can be as high as $1,000,000. How is there any common sense in this?

Well, an alert defense attorney told me about the origin of the $1,000,000 PPI limit. Back in 1973, the
railroad lobby wanted the high limit to pay for any damage to their trains, in the event of a train v car collision. Don't know much about the price of trains, but if I had to rate the comparative severity of damage to the car versus the train in the picture(right), my money would not be on the car (or its occupants).

So, while corporations and insurance companies continue to lobby for the restriction, if not elimination, of protection for injured persons, they are secure in the knowledge that they have so arranged matters to make sure that losses to their business properties are well taken care of.

While business interests have many well paid folks making sure their interests are protected in the Courts and Legislature of Michigan, accident victims (the human ones, I mean) aren't able to build lobbying costs into their household budgets. Few speak on their behalf.

The Legistlature has shown us how it puts damage to property ahead of damage to people. While that may make the railroads feel safe and secure, it doesn't do much for me, or my family...or yours.