The Michigan Chamber of Commerce and the Insurance Institute of Michigan, are urging a no vote in the Senate in response to recent passage of legislation that would make it easier to sue for non-economic damages under the state’s no-fault automobile insurance system.
“Michigan employers and employees cannot afford the 15 to 43 percent increase in automobile insurance premiums that would be passed on to policyholders if HB 4301 is signed into law,” said Wendy Block, director of Health Policy and Human Resources for the Michigan Chamber of Commerce.
“When Michigan’s no-fault law was enacted, the Legislature established very generous benefits in exchange for strict limits on the right to sue an at-fault party for non-economic damages, or pain and suffering awards. The affordability of automobile insurance relies upon this delicately balanced trade-off.
“Legislators had two choices when voting for this bill: they could support policyholders and reasonable insurance rates, or support more lawsuits and profits for personal injury attorneys…We hope the Senate, when considering this legislation, will wisely choose policyholders,” Block said
Peter Kuhnmuench, executive director of the Insurance Institute of Michigan echoed the same support for nixing the proposal.
“We are concerned about the impact of House Bill 4301 on our policyholders.This measure would destroy the fundamental concept of no-fault, which balances comprehensive and immediate benefits in exchange for limits on costly personal injury lawsuits,” Kuhnmuench said.
Proponents of the legislation say the bill adds more balance and fairness to the system. The sponsor of the legislation, Democratic Rep. Paul Condino of Southfield, says the legislation fixes what he considers a travesty of justice based on the 2004 Supreme Court decision.
The Michigan Chamber of Commerce is a statewide business organization which represents approximately 7,000 employers, trade associations and local chambers of commerce.
The Insurance Institute of Michigan (IIM) is a government affairs and public information association representinh more than 90 property/casualty insurance companies operating in Michigan.
Source: Michigan Chamber of Commerce, Associated Press
Topics Legislation Michigan
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