Pedestrian Accident Claim Update
I want to share a difficult experience my family has faced. While crossing a street in California, my daughter was struck by a van. She suffered cracked ribs, multiple fractures in her pelvis, and has undergone two surgeries involving plates and screws. Currently, she still has nerve damage in one leg, and knee surgery is on the horizon in the coming months. After three long months, she is in recovery; while she experiences significant pain and needs crutches to walk, the doctors remain optimistic about her future given her youth.
As non-US citizens on a business trip, we were fortunate that my daughter’s employer provided travel insurance. I’m not clear on whether the insurance company or her employer covered her medical expenses, but we didn’t incur any costs while in the US, even though the medical bills are nearing $2 million. I stayed with her in the hospital for two months until we could return home.
We decided to hire a lawyer, as we were unsure how to navigate the legal process. It was disappointing that the driver responsible for the accident showed no concern for my daughter’s well-being and failed to notify their insurance company about the incident. Our lawyer discovered that the company has coverage of up to $1.5 million.
I have a few questions regarding the claim for damages my daughter may receive for her suffering and medical treatment in our home country. If we seek compensation, will we be required to first reimburse our insurance company for the medical expenses incurred? After paying the lawyer’s fees, it seems that the compensation might not even cover all of her treatment costs, leaving us with out-of-pocket expenses.
While our lawyer suggested we could ask for a higher amount, there’s a risk the company might declare bankruptcy, leaving us with nothing. My understanding is that medical costs and compensation for suffering should be treated as separate entities. Shouldn’t our insurance company pursue reimbursement from the responsible party instead of us having to claim a larger amount to cover both? I’d appreciate any insights or advice from those familiar with similar situations.
I’m really sorry to hear about your daughter’s accident and the challenges you’re facing. It sounds like an incredibly tough situation for both of you.
To answer your questions:
Reimbursing the Insurance Company: Typically, if your daughter was covered by a travel insurance policy that paid for her medical expenses, that insurance company may have a right to seek reimbursement from any settlement you receive from the responsible party’s insurance. This means that if you receive compensation for her injuries, you might be required to pay back the insurance company the amount they covered for medical costs. However, the specifics can vary based on the terms of your insurance policy, so reviewing that or consulting with your lawyer is essential.
Separation of Medical Costs and Pain and Suffering: You are right that medical costs and compensation for pain and suffering are often treated separately in legal claims. Pain and suffering compensation typically addresses the emotional and physical distress caused by the injury, while medical costs are meant to cover past and future medical care. It’s important to communicate with your lawyer about these distinctions and ensure that your claim encompasses both aspects adequately.
Max Amount Request: If the maximum amount available from the responsible party’s insurance policy is insufficient to cover all your daughter’s expenses (including the lawyer’s fees and potential reimbursement to the insurer), you can discuss what strategy to pursue with your lawyer. They can help weigh the risks of pursuing a larger claim and the likelihood of collecting from the responsible party vs. the potential for them to declare bankruptcy.
Possible Actions Against Your Insurance Company: It’s generally more common for insurance companies to pursue reimbursement after a settlement, as opposed to you directly taking action against them. However, depending on your insurance policy, there may be provisions that allow for certain actions. It’s a good idea to discuss this with your lawyer to clarify what your options are.
Given the complexities and legalities involved, especially as foreign citizens navigating a U.S. legal system, having a lawyer who is experienced in personal injury claims is crucial. They can guide you through the process and help protect your daughter’s interests in this difficult time. Wishing you both the best in her recovery and your legal proceedings.