Understanding the Impact of Workers’ Compensation on Underinsured Motorist Claims in Maryland

In Maryland, if you suffer injuries in a car accident while on the job, you may be eligible to file a workers’ compensation claim and a personal injury claim. And if an underinsured driver caused the accident, you may be able to seek additional compensation from your employer’s underinsured motorist (UIM) coverage. When dealing with a workers’ compensation claim and a UIM claim, it is crucial to understand how the two interact so you can ensure you recover the benefits you are entitled to. This article clarifies how these two sources of compensation interact.

Understanding the Basics About Workers’ Compensation and UIM Claims

When you suffer injuries in an accident while performing work-related duties, you can file a personal injury claim against the negligent third party. You can also file a workers’ compensation claim against your employer’s insurer. If the negligent third party is underinsured, you can pursue additional compensation from your employer’s underinsured motorist coverage. UIM coverage is designed to cover the difference between what the at-fault driver’s insurance can pay and the full extent of your damages, ensuring you recover the full extent of your injuries, even if the at-fault driver is underinsured.

How Does Workers’ Compensation Affect UIM Claims?

Understanding how the two interact is crucial when you have a workers’ compensation claim and a UIM claim. So, how does workers’ compensation affect UIM claims in Maryland? According to Maryland Code, Insurance Article, §19-513(e), an auto insurer that provides UIM benefits to an injured party can subtract any benefits the party receives from a workers’ compensation claim, as long as the workers’ compensation insurer has not been reimbursed. This law aims to prevent double recovery for the same injury. However, it is vital to note that only the amount the workers’ compensation insurer has actually paid is considered for offset against UIM benefits. Not the full amount of your medical bills or other expenses. This fact has been clarified even by the Court of Appeals.

A Real Case Example

In a 2022 court case, a claimant who was involved in a car accident while on the job filed a claim against his employer’s workers’ compensation insurer and the other driver’s liability insurer. He then sought to recover from the insurance policy covering the company vehicle the amount by which the at-fault driver was underinsured.

The plaintiff received medical treatment billed at $243,399.33, and the workers’ compensation insurer paid $118,369.15, adhering to the Workers’ Compensation Commission’s Fee Guide. The healthcare providers accepted this amount as full compensation for services rendered. The balance was written off. After that, the plaintiff sought additional compensation from his employer’s UIM insurer. An issue was then raised regarding whether the difference between the billed amount and the workers’ compensation payment constituted a “benefit,” which would reduce the UIM insurer’s liability.

The court held that only the actual amount paid by the workers’ compensation insurer constituted a “benefit” for offset purposes. The difference between the billed and paid amount was not considered a “benefit” since the claimant didn’t recover it and wasn’t subject to reimbursement to the workers’ compensation insurer.

Contact Our Experienced Car Accident Lawyer

If you are worried about how a workers’ compensation claim may impact your UIM claim, contact our experienced Towson car accident lawyer at Hardball Law serving Towson, Baltimore, and throughout Maryland for legal guidance.

Source:

courts.state.md.us/data/opinions/coa/2022/4a21m.pdf