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What Happens to No-Fault Benefits When There is Also a Workers’ Compensation Claim?

Posted by: euser
December 26, 2006
Topic: Minnesota No-Fault Law

 

The basic statute describing the coordination of benefits is Minn. Stat. § 65B.61. The statute provides that workers’ compensation benefits are primary to no-fault insurance benefits, and that no-fault insurance benefits are primary to other forms of benefit payments, such as tort claims. The major purpose for this coordination is to prevent double recoveries by injured persons.

Subdivision 1 explains the general rule regarding the coordination of benefits:

Basic economic loss benefits shall be primary with respect to benefits, except for those paid or payable under a workers' compensation law, which any person receives or is entitled to receive from any other source as a result of injury arising out of the maintenance or use of a motor vehicle. Where workers' compensation benefits paid or payable are primary, the reparation obligor shall make an appropriate rebate or reduction in the premiums of the plan of reparation security. The amount of the rebate or rate reduction shall be not less than the amount of the projected reduction in benefits and claims for which the reparation obligor will be liable on that class of risks. The projected reduction or rebate in benefits and claims shall be based upon sound actuarial principles.

Subdivision 2 provides that no-fault benefits may be offset depending upon the amount of disability benefits received under a workers’ compensation claim:

If benefits are paid or payable under a workers' compensation law because of the injury,
no disability income loss benefits are payable unless the weekly workers' compensation disability benefits are less than the weekly disability benefit as set out in section 65B.44, subdivision 3, in which case the reparation obligor shall pay to the injured person the amount that the weekly disability and income loss benefits payable under section 65B.44, subdivision 3, exceeds the weekly workers’ compensation disability benefits.

Similarly, Subdivision 2a provides that survivors’ economic loss benefits, as set out in section 65B.44, subdivision 6, are payable only if the no-fault benefits are greater than the workers’ compensation benefits.