The Insurance Company Wants Money Back

Sometimes, the PIP insurer will contact you saying that they overpaid some benefit and requesting reimbursement.  Whether or not you have to pay back money depends on the facts of your case.   Here are some guidelines for your review.

In MEEMIC v. Morris, 460 Mich 180 (1999), the Court stated without  discussion or citation that the statute of limitations in a claim for  reimbursement of no-fault benefits was 6 years.

In Wilson v Newman, 463 Mich 435, 441 (2000) the Michigan Supreme Court
summarized the principals regarding restitution of payments made by mistake:
"As a general rule, a payment made under a mistake of fact which induces the
belief that the other party is entitled to receive the payment when, in fact,
the sum is neither legally nor morally due to him, may be recovered, provided
the payment has not caused such a change in the position of the payee that it
would be unjust to require the refund." 

"If the Plaintiffs can demonstrate a change of position or detrimental
reliance as a consequence of having received the mistaken payment, they may be
entitled to retain all or part of the funds mistakenly paid by Allmerica.