No-Fault vs. Workers’ Comp: Which One is Primary?
One question that comes up frequently concerns how New York No-Fault insurance coordinates with Workers’ Compensation insurance when both apply to the same accident. In other words, which policy pays first, the WC or the Auto?
N.Y. Insurance Law Sect. 5102(b) defines first party benefits for No-Fault as:
…payments to reimburse a person for basic economic loss on account of personal injury arising out of the use or operation of a motor vehicle, less
(1) Twenty percent of lost earnings computed pursuant to…this section.
(2) Amounts recovered or recoverable on account of such injury under state or federal laws providing…workers’ compensation benefits…
Therefore, any amounts an injured person receives from Workers’ Compensation will be deducted from the No-Fault benefits. Workers’ Comp is primary and No-Fault is excess.
Happy Independence Day, all!
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