An explanation of New York’s no-fault law and ATV PIP insurance benefits

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<h1>An explanation of New York’s no-fault law and ATV PIP insurance benefits</h1>
<h2>What is the New York no‑fault law?</h2>
<p>The New York Comprehensive Auto-mobile Insurance Reparations Act (also known as the no-fault law) took effect on Feb. 1, 1974. Legislators wanted to ensure persons injured in a vehicle accident would receive prompt and sufficient medical treatment and income replacement without the burden of litigation. Prior to no-fault, only 14 percent of the liability premiums in the state actually reimbursed accident victims for their economic loss, and the average time to collect was 16 months.</p>
<p>The no-fault law provides a generous package of Personal Injury Protection benefits and finances it with the removal of excessive pain and suffering damages, wasted litigation expenses and redundant benefits payable under other social programs (for example, workers’ compensation and Social Security). As a result, most covered persons injured in a vehicle accident give up some of their rights to sue for noneconomic (e.g., pain and suffering) damages in exchange for guaranteed benefits that are paid promptly regardless of fault. However, if the injury is severe enough to reach a “verbal threshold,” which is a list of nine injury types, an injured person may then pursue noneconomic damages.</p>
<h2>Does this New York no-fault law apply to all-terrain vehicles?</h2>
<p>Yes, PIP coverage is required for ATVs when they are operated off the owner’s property, but it applies only to injured pedestrians. Occupants of an ATV are not eligible to receive PIP benefits.</p>
<p>However, there is no restriction on an injured person’s right to collect noneconomic damages, as there is for persons eligible for coverage when the accident involves a motor vehicle or a motorcycle.</p>
<h2>What are Personal Injury Protection benefits?</h2>
<p>PIP benefits emerge from the legislators’ promise of Basic Economic Loss for eligible injured persons, which consist of four types of compensation. The first three shown below are subject to a combined limit of $50,000, while the limit of the fourth is in addition to the $50,000 limit.</p>
<ol>
<li>All eligible medical expenses incurred without time limitation.</li>
<li>Income loss payments up to $2,000 per month for no more than three years.</li>
<li>Other expenses incurred (e.g., housekeeping or transportation) up to $25 per day for not more than one year.</li>
<li>Death benefit of $2,000 payable to the covered person’s estate.</li>
</ol>
<p>Keep in mind, while eligible injured persons are guaranteed this Basic Economic Loss, it may not all be payable as PIP benefits. There could be other sources, such as workers’ compensation, state disability or Social Security benefits, which may contribute with your ATV insurance to help compensate the injured person for Basic Economic Loss.</p>
<h2>Are there any other PIP options available for ATVs?</h2>
<p>There are none required by law (e.g., Optional Basic Economic Loss coverage required on motor vehicle and motorcycle policies) and most, if not all, insurance companies do not voluntarily offer other options.</p>
<cite>This information is provided as a general summary of the no-fault law and PIP coverage. Please consult the actual law and your policy for specific details that may be applicable to your situation.</cite>
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