Michigan's No-Fault Act
The big question that people have in Michigan is when can I sue someone for my non-economic loss? Non-economic losses are generally characterized as losses for pain and suffering as a result of an injury after an automobile accident.

Liability
Damages in Michigan are assessed on the basis of comparative fault. In other words, in order to sue a person that hit you or caused an accident, you cannot be more than 50% at fault. As an example, a driver that becomes intoxicated and crosses the centerline and hits a vehicle head on will most likely be considered 100% at fault. This at-fault driver could be sued for non-economic losses provided the injuries are serious enough.

Michigan Threshold
In order to recover in Michigan not only must you be less than 50% at fault but you must also meet the threshold of injury, The threshold of injury in Michigan requires that before a person can recover damages, they must have suffered a serious impairment of bodily function or permanent disfigurement or death. Serious impairment of a bodily function means an objectively manifested impairment of an important body function that affects the persons general ability to lead a normal life.

Serious Impairment of Body Function
One of the elements the plaintiff must prove in order to recover non-economic loss damages in a case is that he/she sustained a serious impairment of body function. Serious impairment of body function means an objectively manifested impairment of an important body function that affects the plaintiff's general ability to lead a normal life. An impairment does not have to be permanent in order to be a serious impairment of body function. In order for an impairment to be objectively manifested, there must be a medically identifiable injury or condition that has a physical basis. The phrase important body function itself has no special or technical meaning in the law and should be considered by you in the ordinary sense of its common usage.

It is difficult to talk about the Michigan No-Fault Act and not use legal terms. Put simply, before a person will be able to sue for non-economic losses under the Michigan No-Fault Act, they will have to be less than 50% at fault in causing the accident, and additionally, their injuries will have to be serious enough to meet the threshold. Other types of serious injuries that meet the threshold would be paralysis, serious fractures, multiple surgeries, long terms of hospitalization, and brain injuries.

Problems
Problems arise when insurance companies attempt to dispute whether or not a claimant suffered a serious impairment of bodily functions. For instance, if an individual suffers a "serious injury", but returns to work shortly after the accident, the insurance company may dispute the seriousness of the injury due to the fact that the individual is back at work. That does not mean that you do not have a claim; it simply means that the insurance company is disputing whether or not it constitutes a threshold injury. Often times the insurance company will contact doctors and request an independent medical examination of an injured party. The purpose of the independent examination is to lay groundwork for their position that the injury does not constitute a serious impairment of bodily function.

Settlement
Before any person attempts to make an insurance settlement regarding a personal injury claim, it is highly recommended that they consult an attorney. There are no hard and fast rules as to what the value of certain injuries are in money terms. There is, at best, a broad range of settlement for each injury. Most sensible people would never go out and attempt to buy a certain injury. Thus, people often have greater expectations of the value of an injury because it happened to them personally. However, insurance companies tend to use accounting approaches resulting in an impersonal evaluation of a claim.

Claims Under First Party Benefits / Personal Injury Protection
When an injury arises out of the use of a motor vehicle and you are insured, you are entitled to certain personal protection benefits. These benefits are separate from someone who is attempting to sue a third party. These benefits derive from your personal insurance policy and are paid to you regardless of your fault in the accident. The payment for these first party benefits include wage loss for up to three years, all medical expenses related to the accident as well as some limited benefits for attendant care. These are not the only benefits and there are additional benefits that may be available to you under the first party aspect of a No-Fault claim. Anytime you are injured in an auto accident, you should contact your insurance company immediately and fill out a claim form for first party benefits.