Question from an IIABNY member: We've had many insureds ask about Personal Injury Protection coverage for motorcycle, and our understanding was that no such coverage was afforded to the operator or passengers. We have seen pedestrian PIP coverage on policies and are not even clear how that works, as we've been lucky enough not to have a loss pertaining to that, and are not big on motorcycle insurance anyway. Recently, however, we had an insured get into an accident while driving his motorcycle. We insure his auto but not his motorcycle. He had a passenger behind him on the bike and was hurt when he swerved to avoid getting hit by another car. The other vehicle's policy paid out on liability and property damage to the bike, but the limits have since been exhausted and our insured still has lost wages and medical expenses to worry about. He thought he had PIP coverage on his motorcycle insurance, but his agent told him he only had pedestrian PIP coverage and that his auto insurance company would have to pay out for lost wages and medical expenses through uninsured/underinsured coverage. Is this true?
Answer: The other agent is correct. The PIP motorcycles endorsement provides pretty limited coverage. The first two paragraphs of Section I state just how limited the coverage is:
Mandatory Personal Injury Protection
The Company will pay first-party benefits to reimburse for basic economic loss sustained by an eligible injured person on account of personal injuries caused by an accident arising out of the use or operation of the insured motorcycle. This coverage applies only to motorcycle accidents which occur during the policy period and within the State of New York.
Eligible Injured Person
An eligible injured person is any person who sustains a personal injury arising out of the use or operation of the insured motorcycle while not occupying the insured motorcycle, any other motorcycle or a motor vehicle.
Therefore, a person can collect benefits under this endorsement if he: 1) sustains an injury arising out of the use or operation of the insured motorcycle; 2) was not riding the motorcycle; 3) was not riding another motorcycle or any other motor vehicle; and 4) was in New York. Basically, it covers pedestrians in New York. Cross the state line into Connecticut and even they don’t have coverage. The insured driver and passengers have no coverage under this endorsement. I agree with the other agent – the underinsured motorist coverage is the next logical place to look for coverage.
I do not see where this really answers the question. The agent wanted to know if it is true that the pay out for the lost wages & medical expenses would then go through the insured's auto insurance policy's uninsured/underinsured motorist coverage since there is no coverage on the motorcycle policy? The PIP coverage issue was already established (he had none). I would be interested to know if it would indeed come under the UM on the auto then? Especially since the at fault party's limits were exhausted!
Posted by: TAS | January 18, 2012 at 12:37 PM
Would the under-insured coverage of the auto policy extend to an owned motorcycle not listed on the auto policy? Isn't this coverage available under the motorcycle policy?
Posted by: Joe Romeo | January 18, 2012 at 01:35 PM
TAS,
Good point, and one I didn't make clear. I assumed that the member was referring to the UM coverage on the motorcycle policy, not the personal auto policy. Since the motorcycle is not listed on the declarations page for the PAP, it doesn't meet the definition of "your covered auto" and would not be insured for UM under that policy. Assuming that the motorcycle policy also provides UM coverage, the injured person should be able to seek benefits under that.
Posted by: Tim Dodge | January 18, 2012 at 01:59 PM
Joe,
Yes, the claimant should seek coverage under the motorcycle's UM coverage, not the UM coverage on the auto policy.
Posted by: Tim Dodge | January 18, 2012 at 02:00 PM