Posted On: October 2, 2007, 8:26 pm CDT

Posted By: Liz

Many of you with opinions on the subject need to actually read your policy so that you understand what it provides.
PIP was created with the hope of reducing litigation which clogged the court system with minor motor vehicle injury claims. The theory was that if the owner of every motor vehicle purchased PIP (which pays 80% of medical expenses and 60% of wage loss to a max of $10,000) this would satisfy the needs of the injured party and he/she would not file suit. An injured party must have a permanent significant injury in order to recover anything other than his medical/wage expenses. Unfortunately what happens all too often, is that PIP pays the 10k on most claims (go figure-amazing how some injured parties need $10,000 worth of treatment and are still left with a permanent impairement) and there is still a lawsuit. There are lawsuits over payment of PIP and lawsuits over payment for pain and suffering, so the PIP law no longer does as it was intended. Maybe the state should mandate that doctors who charge their patients (or their carriers) $10,000 for treatment of neck and back strains must completely cure their patients. That would be much better legislation if you ask me. While they are at it - why don't they also mandate that lawyers can't charge their clients 33% to 40% fee if an ex-insurance adjuster actually handled their case?