MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION ANNUAL
REPORT TO THE DIRECTOR OF DIFS 2015
MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION
PAID CLAIMS SUMMARY AS OF JUNE 30, 2015
FIVE YEAR COMPARISON OF AMOUNTS PAID
JUNE 2011 JUNE 2012 JUNE 2013 JUNE 2014 JUNE 2015
12 MONTHS ENDING BILL REVIEW LOSS PAYMENTS TOTAL % DIFFERENCE AVERAGE MONTHLY
6/30/2011 5,724,891 959,085,675 964,810,566 18.10% 80,400,881
6/30/2012 5,270,596 926,419,116 931,689,712 -3.43% 77,640,809
6/30/2013 5,370,402 977,762,428 983,132,828 5.52% 81,927,736
6/30/2014 5,585,278 1,021,445,094 1,027,030,372 4.47% 85,585,864
6/30/2015 5,766,960 1,070,239,577 1,076,006,538 4.77% 89,667,211
MCCA CLAIM STATISTICS INCEPTION TO DATE
FISCAL YEAR 7/1/1978 TO 6/30/2015
their contractual obligation to consumers;
or worse yet, the denied claims that
consumers never pursue.
In reality, fraud is a nationwide problem
in many areas of our society. It is not
acceptable. However, put in perspective,
fraud in the No Fault program is a drop
in the bucket compared to the amount
of benefits withheld by the insurance
companies and then disputed in the legal
arena. It is important to understand that
the group mentioned above that commits
fraud is a small fraction of those who
comprise the industry. Again, the Michigan
No Fault program is working, affordable,
self-sustainable and the best automobile
insurance in the nation, bar none.
In conclusion, I’d ask each reader to
answer the question: Who would you trust
to fairly handle you insurance claim, an
insurance adjuster or your attorney? Most
people would say it is the attorney, not the
insurance company that you might have
been with for years. You must also admit
that our insurance program is broken and
needs to be fixed.
Let’s be clear, No Fault is not broken
because the program itself is flawed or
that it is too expensive. To the extent it
might be broken it is because it lacks the
consumer protection that was originally
envisioned by the legislators and Governor
Milliken and that was available and
effective in the past.
It is broken because the focus is on the
whole program, not the two per cent
minority that fraudulently uses it.
It is broken because the focus is not on the
insurance companies that defraud their
consumers by denying appropriate claims
and then litigating against those customers
who question their actions.
It is broken because consumers are forced
to file lawsuits against the insurance
companies to get what was contracted
with them when they trustingly took out
It is broken because in Michigan, auto
insurance premiums follow a file and use
system. Insurance companies simply give
notice of an increase and then begin to
charge policy holders. There is no serious
audit of support for the increases. The
public is at the mercy of the insurance
So let us focus on the real problems and
take action to correct them!
GENERAL STATISTICAL INFORMATION:
AMOUNT PAID (MILLIONS)
Catastrophic claims involve injury to the brain, and/or spinal cord which results in serious
and permanent disability. i.e., paralysis, coma, and reasoning ability.
Over 37 years (1978 to 2015) there are currently 15,353 open claims.
On average, that is 415 claims added per year. In reality, these are severe injuries and
many of the injured parties expire. There are a few who are rehabilitated and return to life
independent of fund support. This is rare however, as those whose injuries are in excess of
the half million dollar threshold, typically never regain the full independence they enjoyed
prior to their motor vehicle accident.