How The Michigan Catastrophic Claims Association Is Funded and Works

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The Michigan Catastrophic Claims Association is something that few people outside of Michigan have ever heard of.  Started in 1978, the Michigan Catastrophic Claims Association will provide unlimited lifetime coverage for personal injuries incurred as a result of an automobile accident within the state of Michigan to any individual so injured.  The Michigan Catastrophic Claims Association initially reimburses no-fault insurance providers after they have paid the claim, and any amount of money over the $480,000 cap on the insurance company’s liability for the accident will be paid by the MCCA.  So, how does the MCCA work, and what requirements are involved?

Understanding the Michigan Catastrophic Claims Association

The MCCA was started by an act of the Michigan State Legislature in 1978.  It is a non profit organization that is not officially incorporated in any fashion, and is referred to as an “association,” not through any official corporate name.  Because Michigan provides unlimited lifetime coverage for catastrophic vehicle accident injuries, many smaller insurance companies did not have sufficient financial backing and so would not have been able to write insurance policies in the state of Michigan without the creation of this association. 

As a result of the founding of the Association, every insurance company that wishes to write a policy in the state of Michigan must be a member of the MCCA, and must pay dues to the MCCA in the form of a premium assessed on the total number of insurance policies issued in the state. 

What Does the MCAA Do?

  • The MCCA includes automobile and motorcycle policies as part of its coverage, and it is governed by a board of directors that make decisions that are in the interest of the MCCA and the drivers of Michigan.  
  • There are a number of committees that make up the MCCA, and these committees meet periodically to make MCCA policy.  
  • If you have been injured in a catastrophic motor vehicle accident and require lifetime care or the payment of excessive amounts of insurance money, the MCCA will cover you for your lifetime by reimbursing the insurance company that pays your claim after they have made the initial payment to you.

The MCCA works quietly behind the scenes and is not an organization that many people will come into contact with.  However, they provide a valuable service and protection to the drivers in the state of Michigan, as well as assurance to the insurance companies that write policies in Michigan that they will be able to comply with the state’s no-fault unlimited lifetime liability coverage requirements.

Getting Help

If you have been the victim of a Michigan car accident, you should consult with a qualified attorney who handles car accident cases in Michigan. Your lawyer can help you understand all avenues available to you to get compensation for your injuries, including compensation through the MCAA.