Understanding the value of your case and ways to increase the amount of money you receive in a settlement.
We have written several blog posts this week regarding facts and statistics. This trend continues with a closer look at average redemption amounts.
Data published by the Agency shows the average settlement was just $59,208.72 in 2014. This represents a 4.8% decrease from last year.
It is no surprise that changes to Michigan law in 2011 have resulted in lower settlement amounts. This is despite yearly increases in the state average weekly wage. People are finding it much harder to prove entitlement to benefits. Employers have seen a 28% drop in the pure premium rate and a windfall of 277 million.
Most people are shocked to hear this statistic because it does not sound like much money. Especially for an individual who cannot work and needs medical treatment.
Settlements are based upon how much the insurance company thinks it will have to pay for wage loss, vocational rehabilitation, medical, and administrative/court costs. Insurers think about settlements like any other business decision. Sometimes it is cheaper to take a case to trial and risk losing.
Pros & Cons
Accepting a lump sum settlement instead of weekly checks allows a person the freedom to move on with his or her life. Medical treatment can be purchased without interference from the insurance company. A person can also start a new job without worrying about losing benefits.
All settlements must be approved at a redemption hearing. It is a short process that ensures each side understands what is happening. A magistrate will consider medical records and hear why the claim is being resolved.
A workers comp lawyer can help a person understand the legal issues and show how to get the best possible result. Having a strong advocate can make all the difference in the final settlement amount.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
Related information:
VIDEO: Injured at work? Advice from a Michigan workers comp lawyer
Photo courtesy of Creative Commons, by 401(K) 2013.
