Michigan Catastrophic Claims Association announces support for Michigan driver refunds

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Posted at 6:13 PM, Nov 03, 2021
and last updated 2021-11-03 18:13:36-04

(WXYZ) — The Michigan Catastrophic Claims Association Board has announced support for consumers refunds resulting from Michigan's Auto No-fault insurance reforms.

The MCCA says details on refund amounts, a proposed timeline, and logistics will be announced in the next several weeks.

Governor Gretchen Whitmer issued the following statement on the move:

As we continue to put Michiganders first, I am always working to find ways to lower costs and use every resource we have to help Michiganders thrive. It is great news that the Michigan Catastrophic Claims Association has swiftly taken action in response to my letter this week to begin the process of issuing refund checks to help drive down the costs and produce savings for Michiganders with auto insurance. Michiganders have paid into the catastrophic care fund for decades, and these funds from the $5 billion surplus belong in the pockets of Michigan policyholders.

The move comes two days after Whitmer Monday called on the Michigan Catastrophic Claims Association to deliver refund checks to every Michigander with auto insurance.

The refund is part of a bipartisan auto insurance reform law, Senate Bill 1, signed by the governor in 2019.

The proposed refunds are causing concerns among those covered for catastrophic injuries that the money is coming from the fund that covers their care costs.

Earlier this year, the Consumer Federation of America issued a study saying that Michigan's refunds early in the pandemic were insufficient and that drivers were owed another $1 billion in 2020.