Why are motorcyclists excluded from No-Fault coverage?

When the New York No-Fault law was enacted, the insurance companies were able to successfully argue that motorcycles are inherently dangerous and motorcycle accidents cause serious injuries with expensive medical treatment that would cause auto insurance policies to be too expensive.  Find out why No-Fault insurance coverage is listed on your motorcycle insurance policy.

It’s ironic that the problem with No-Fault billing which insurance companies face today is extensive and fraudulent medical treatment billed by doctors, in a few counties, for treatment of soft tissue injuries sustained by people in cars.  The amount paid out on many No-Fault claims can cost as much as the hospital and surgical treatment provided to an injured motorcyclist.

Additionally, while insurance companies claim that there is much fraud with medical treatment for soft tissue injuries, there is probably never any fraud involving medical treatment for an injured motorcyclist with a fractured ankle, leg or a broken arm.  Fractures (broken month) and required treatment including surgery are easily documented.

Furthermore, many motorcycle accidents result in minor injuries and I have yet to see a motorcycle accident client with a minor injury receive anything more than a couple of doctor visits.  Motorcyclists tend to have the type of personality that avoids medical treatment if possible.

Finally, there are far fewer motorcycle accidents than car accidents because there are fewer motorcycles than cars and because most motorcyclists do not ride in the winter.

In summary, while motorcycle accidents often cause more serious injuries, they are not always more expensive; there would probably be no medical billing fraud; and there are far fewer motorcycle accidents.

The law should be amended to require insurance companies to sell No-Fault coverage to motorcyclists, even if it would allow insurance companies to charge an additional premium which would likely be a very small amount.

If you suffered a serious motorcycle injury which could cause you to be institutionalized, but you would like to stay at home with assistance, the Americans with Disabilities Act is a useful and vital tool to ensure that you get the help you need to continue a life as normal as possible.

In a Florida case Michele Haddad was injured in a motorcycle accident when she was struck by a drunk driver who caused a spinal cord injury with paralysis and left her a quadriplegic. Michele requested services from the state, but was told that she would first have to be institutionalized for at least 60 days.

The U.S. District Court in Jacksonville ruled in Michele Haddad’s favor, that the state must provide her with services so she can remain in her home and not be institutionalized.

See the Americans with Disabilities Act helps injured motorcycle accident victim.

I received a call from someone who was hurt when a car struck his motorcycle and he was calling to find out if he could have a case.  He didn’t think of calling a motorcycle lawyer at the time of the accident because he was driving without a motorcycle operator’s license.

The caller said that because he was driving the motorcycle illegally and was issued a ticket for driving without a license, he thought that he would not be able to have a lawsuit.  I asked him, if he had a valid motorcycle license at the time of the accident would that have prevented the accident?

Someone could be driving without a valid motorcycle license for various reasons such as: it was valid but left at home; was suspended or revoked; the driver failed to renew it; or the driver never obtained a license, but that didn’t cause the accident!

Some people think that if the motorcycle operator obeyed had the law, he would not be in that place at that time and the accident could never have happened.  However, the only issue is whether the other driver is at fault.  The caller’s injuries were 100% caused by the other driver’s negligence when the caller’s motorcycle, which was stopped at a red light, was hit in the rear by the car.  The motorcyclist is therefore entitled to be compensated for his injuries.

If a motorcyclist had never been issued a motorcycle license, it would only become an issue if lack of training had anything to do with the accident and could only be considered comparative negligence which would reduce the amount you recover by your percentage of fault as determined by a jury.

If the injured operator of a motorcycle previously had a motorcycle license which was expired, suspended or revoked but did not have a valid license at the time of the accident, the lack of a valid license should have no bearing on the accident or his right to compensation for injuries because an argument could not be made that the motorcyclist did not ever receive the required training to operate a motorcycle.

If you have been hurt in a motorcycle accident in which you were operating the motorcycle without a valid license, please call New York motorcycle accident lawyer Phil Franckel immediately for a free consultation at

1-800-HURT-911
1-800-487-8911

No-Fault insurance coverage for New York motorcycle accidents?

Motorcyclists are often confused as to whether they have No-Fault insurance coverage for motorcycle accidents because No-Fault is a listed coverage on motorcycle insurance policies.  Even worse, hospitals, doctors and even health insurance companies incorrectly believe that motorcyclists are covered by no-fault when injured in a motorcycle accident.

What is No-Fault insurance coverage? Basically, No-Fault insurance coverage pays for medical treatment, other expenses and lost wages for a person injured during the use and/or operation of a car.  While No-Fault benefits are usually paid because of a car accident, they can also be paid for an injury caused while using a car, such as while getting into or out of a parked car.  New York State requires minimum No-Fault coverage of $50,000.

Some motorcyclists think that they can receive No-Fault insurance coverage benefits when they are injured in a motorcycle accident. Some people think that No-Fault insurance coverage doesn’t protect motorcyclists but is available for passengers on a motorcycle who are injured in an accident. After all, why would No-Fault coverage be listed on a motorcycle insurance policy if there was no coverage?

So the question is, does No-Fault insurance cover motorcyclists and motorcycle passengers?  The answer is, unfortunately, definitely NO.

What says that NYS No-Fault Insurance does not cover motorcyclists?

Article 51 of the New York Insurance Law is also known as “The No-Fault Law”.

Article 51 § 5102(f) provides the definition of a motor vehicle and states, “‘Motor vehicle’… shall not include… a motorcycle, as defined in subsection (m) hereof.

§ 5102(m) states, “Motorcycle” means any motorcycle, as defined in section one hundred twenty-three of the vehicle and traffic law, and which is required to carry financial security pursuant to article six, eight or forty-eight-A of the vehicle and traffic law.

§ 5103(a)(2) “Entitlement to first party benefits” extends entitlement of no-fault benefits to “The named insured and members of his household, other than occupants of a motorcycle…”

Consequently, New York State No-Fault insurance benefits are NOT available to motorcyclists or their passengers.

So, why is No-Fault coverage listed on my NYS motorcycle insurance policy?

The reason that you will see No-Fault insurance coverage listed on your motorcycle insurance policy is that pedestrians struck by a motorcycle ARE covered by No-Fault insurance. (Anybody not occupying the motorcycle or another vehicle who is injured by the motorcycle is covered.)   This can be found at § 5103(a)(1) which provides entitlement of no-fault insurance benefits to “Persons, other than occupants of… a motorcycle, for loss arising out of the use or operation in this state of such motor vehicle.”

If you are injured in a motorcycle accident, you may be unable to obtain costly MRIs, surgery, physical therapy and other medical treatment if you did not purchase medical insurance. Medical bills for motorcycle accidents usually cost between $30,000-$50,000 and can cost much more. I’ve already had one case with over $800,000 in medical bills. Without insurance coverage to pay for medical bills, it is difficult to get the medical treatment you need.

Why are motorcyclists excluded from No-Fault coverage?

How to Get Medical Treatment for Motorcycle Accident Victims

If you are injured in a New York motorcycle accident without medical insurance, I can refer you to doctors, surgeons and MRI facilities who have agreed to treat injured motorcycle accident victims on a lien, which is a promise to pay from your motorcycle accident settlement.

Many accident lawyers do not know MRI facilities who will do an MRI on a lien or doctors who will do surgery on a lien.  Additionally, many accident lawyers will not agree to sign a lien, but I always agree to sign liens for my clients.

If you have been HURT in a New York motorcycle accident, please call Phil Franckel, Esq. for a free consultation, at 1-800-HURT-911.

Motorcycle accident cases can usually be settled for the entire insurance policy much more quickly than most car accident cases. But what happens when you agree to settle your case?

As an example, your motorcycle was struck by a car with a $100,000 insurance policy. You receive a call from your lawyer advising that the insurance company has offered to settle your case for the full $100,000 insurance policy. If you decide to accept the settlement offer, the insurance company will require you to sign a release.

The release permanently releases the owner and driver of the car, which means you can never (unless fraud was committed) seek any more money for your injuries from the owner and driver of the car.

After you sign the release, your lawyer will send the release to the insurance company. Pursuant to New York State law C.P.L.R. § 5003-a, the insurance company must send the settlement check within 21 days of the date the release was mailed to the insurance company. The insurance company will mail the settlement check to your lawyer.

Your lawyer will deposit the settlement check into an escrow account called an I.O.L.A. account (Interest On Lawyer Accounts). Because settlement checks are out-of-state checks for large amounts, it can take up to 10 days for the bank to clear your settlement check. After your check clears, your lawyer will likely deduct case expenses, then deduct legal fees, and issue a check to you for your net settlement.

My bank usually clears checks in one day and I issue the settlement check to my client the next day. I do not charge motorcycle accident clients for expenses when settled in claim as almost all motorcycle accidents are. I do not charge additional legal fees (such as for negotiating medical liens) and charge only one third of the settlement amount, which can save you thousands of dollars.

If you have been hurt in a New York motorcycle accident, please call Phil Franckel, Esq. immediately, and before speaking with any insurance company, for a free consultation, at 1-800-HURT-911.

After a motorcycle accident, your motorcycle may be towed to a repair shop. The question is when can the repair shop charge you for storing your motorcycle and how much can you be charged.

New York regulations allow a maximum storage fee of $15 per day if your motorcycle is stored outside. If your motorcycle is stored inside, the shop must have a sign posted which indicates the storage fee. If your motorcycle has to be disassembled to provide an estimate, the shop may charge a disassembly fee.

New York Motor Vehicle Repair Shop Regulations PART 82.8 (c) (1) provides that a customer may not be charged for storage unless notice in writing is given by a statement on an estimate or other document given to the customer.

(2) Storage of the motorcycle may not be charged during the period from which the customer has authorized repairs to one business day after the repair shop has notified the customer to pick up the repaired motorcycle. (There is a contradiction on page 22 of the Motor Vehicle Repair Shop Regulations which states that the repair shop cannot begin charging for storage until two business days after they have notified you to pick up your motorcycle.

(d) Upon reasonable notice a customer may remove the motorcycle from a repair shop during the shop’s business hours upon paying for storage charges.

For information on towing your motorcycle in New York City, see the Towing Service Guide.

If injured in a New York motorcycle accident while working, can you have both a Worker’s Compensation claim and a personal injury claim or lawsuit?

Some people think that if you have a Worker’s Compensation claim, you cannot have a personal injury claim. The Worker’s Compensation Law, enacted by the New York State Legislature in 1914, took away the right of an employee to sue an employer in most instances. However, you may be able to sue a third-party whose negligence caused or contributed to your injury in an accident while at work.

It’s not very common to have a Worker’s Compensation claim involving a motorcycle and a personal injury claim from the same accident, but it is possible. It is more common to have a personal injury claim if you were hurt while driving a car or van for work.

Some people may be employed to work on motorcycles or ride motorcycles for work and encounter an injury while working. These injuries may be covered only by Worker’s Compensation or by Worker’s Compensation and a personal injury claim.

For instance, an employed motorcycle mechanic would be covered only by Worker’s Compensation when injured in the shop from an accident that was not caused by someone other than the mechanic or the employer. However, if the mechanic is injured by someone else’s negligence, the mechanic can be covered by Worker’s Compensation and may also have a personal injury lawsuit.

If the mechanic is working on a motorcycle in front of the shop and a customer driving to the motorcycle shop strikes the mechanic, the mechanic may have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car.

Likewise, a motorcycle police officer could be injured because the officer parked the motorcycle on hot asphalt where it sink into the asphalt and fell onto the police officer. Since there was no one besides the officer or employer negligent for the injury, this would only be covered by workers compensation. However, if the police officer’s motorcycle was struck by a car that ran a red light, the police officer would have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car that ran the red light.

If you have been hurt in a New York motorcycle accident while working, please call New York motorcycle accident lawyer Phil Franckel immediately (days/nights/weekends) for a free consultation to discuss which benefits and claims you are entitled to.

1-800-HURT-911
1-800-487-8911

Many of my clients who were injured in a New York motorcycle accident have suffered injuries usually worth approximately $500,000 and sometimes a lot more. With injuries that serious, tax consequences and tax planning methods to avoid the settlement money being taxed by the IRS, must be considered.

After 17 tax credits in law school, this is a topic which interests me and on which I can write a few pages. For informational purposes only, I will attempt to provide a simple, general answer here in just a few paragraphs. You should not rely on this information and you should consult a CPA, accountant or tax professional regarding your specific circumstances before settling your case or before filing your tax return if you have already signed a release and settled your case.

IRC section 104(a)(2) addresses income exclusions for taxation of personal injury lawsuit settlement payments, which includes New York motorcycle accidents. Money paid for property damage and medical bills is not taxable because it is offset by a loss. Likewise, money paid for “pain and suffering” in settlement of a personal injury claim is generally not taxable because it is compensation for a loss which is intended to make you whole again.

When is money paid to settle a personal injury claim taxable?

Lost Wages/Lost Income. Money paid for lost income is taxable.

Psychological Injuries. Money paid for psychological injuries may be taxable. The U.S. Court of Appeals for the District of Columbia in Murphy and Leveille, Appellants v. IRS and USA, Appellees, reversed a decision that money paid for psychological injuries is not taxable. The court ruled that the personal injury award Ms. Murphy received was “within the reach of the congressional power to tax under Article I, Section 8 of the Constitution”, even if the award was “not income within the meaning of the Sixteenth Amendment”. The U.S. Supreme Court denied review of the decision on April 21, 2008.

Punitive Damages. Money paid for punitive damages is taxable. IRC section 104(a)(2) was amended in 1996 making punitive damages taxable without regard to their connection to a physical or nonphysical injury or sickness.

Interest Earned after a Personal Injury Settlement. If you receive money for an injury which is not taxable and you deposit the money in a savings account or otherwise invest it, outside of certain kinds of trusts such as a Special-Needs Trust or Pooled Trust, the interest earned is taxable. For more information about Special-Needs Trusts or Pooled Trusts, see HelpWithLiens.com.

When money is awarded pursuant to a verdict after trial, the verdict will state how much money is paid for property damage, medical bills, lost wages, pain and suffering, etc. The amount of your personal injury award which is subject to taxation by the IRS or state tax authority will be determined by the jury verdict.

The problem is when money is paid pursuant to a settlement, many lawyers frequently do not state in the release what the money is being paid for. It is possible for the IRS to make a determination by examining various papers in the file, such as the initial claim letter, the legal complaint, papers submitted to the insurance company as proof of damages, and the release which was signed.

This problem can be rectified with the proper wording in the settlement release. The usual “General Release” form is silent on tax issues and thus not helpful. It is therefore important to customize the release to address the tax issues. The provisions which result in a favorable tax status are often adverse to the insurance company’s interests, however, I have usually been able to successfully include provisions in my clients’ release to prevent taxation of settlement proceeds.

If you have been hurt in a New York motorcycle accident, I will be happy to discuss income tax implications of your settlement payment and the ways in which I can help you to avoid any income tax liability, so that you do not have to pay any income taxes on your motorcycle accident settlement.