The Michigan Catastrophic Claims Association (MCCA) was created in 1978 to reimburse insurance companies for amounts paid for Personal Injury Protection (PIP) benefits over an amount deemed catastrophic under the automobile no-fault law. Due to the cost of providing unlimited benefits, insurance companies were encountering difficulties obtaining reinsurance for Michigan’s no-fault auto policies, leading to the creation of the MCCA.

Where Did the Funds Come From?

To keep insurers on a level playing field, every insurance company that sells automobile insurance in the state of Michigan is required to be a member of MCCA. Historically, the MCCA was funded by an annual premium assessment based upon the number of automobiles and motorcycles insured in Michigan. The MCCA is required by law to assess an amount sufficient to cover lifetime claims of individuals catastrophically injured in that year and to revise the assessment rate as necessary.