Governor Gretchen Whitmer announced today that nearly one-third of eligible Michiganders have already received their $400 Automatic Reimbursement Checks from the Michigan Catastrophic Claims Association (MCCA) Catastrophic Fund Surplus.
According to data collected by the Michigan Department of Insurance and Financial Services (DIFS), more than $906 million of the $3 billion in surplus funds has been distributed, which Whitmer attributed to “bipartisan insurance reform.” automotive” in a statement.
Auto insurers have until May 9 to return the remaining $2.1 billion by mailed check or direct deposit to eligible drivers.
At a press conference in Lansing on Thursday afternoon, April 14, DIFS Director Anita Fox called it a “huge process” to ensure that all eligible Michigan residents receive their reimbursements before the deadline approaching. It’s a top priority for his department, Fox said.
She went on to say that after conversations between the ministry and the insurers, she is confident that they are in fact able to meet the May 9 deadline.
“We wanted to hit base, we wanted a realistic timeframe, but one that wasn’t going to last forever because the Michiganders need that money now,” Fox said. “It was really about how can we work together to make sure that is achieved.”
Fox also said impatient residents should be wary of giving out their personal information, due to reports of scams that began when the refund was first announced.
The MCCA is a statutory non-profit organization to which all auto insurers contribute for bodily injury protection under the state’s no-fault auto insurance system.
The announcement of the refund came after Whitmer’s November 2021 request that the MCCA use a $5 billion surplus to reimburse drivers who have contributed to the fund. The MCCA Board of Directors then voted unanimously to issue refund checks.
Related: Why Whitmer is asking the auto insurance industry to give back a ‘maximum amount’ of $5 billion in surplus to drivers
After completing a data verification process, the MCCA transferred $3 billion to Michigan insurers tasked with issuing refunds to eligible drivers, while retaining $2 billion of the excess to ensure continuity of care for accident survivors.
Meanwhile, some car accident survivors have expressed frustration over the amount of their reimbursement when treating auto-related injuries since Michigan’s new no-fault insurance policy took effect.
To be eligible for a refund, Michiganders must have had an insured car, motorcycle or motor home to legally drive on Michigan roads by 11:59 p.m. on October 31, 2021. Refunds are $400 per vehicle or $80 per historic vehicle, and must be sent by May 9.
Eligible residents don’t have to do anything to receive their reimbursement, but they may want to verify their address or banking information with their insurance company to avoid delays.
Eligible drivers who do not receive their reimbursement on time should contact their auto insurer or agent. For questions or concerns that cannot be answered directly by an auto insurer, contact DIFS at 833-ASK-DIFS (833-275-3437) or by emailing email@example.com.
More information is available at michigan.gov/MCCArefund.
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