Pedestrian Accident Claim
I want to share our experience regarding a pedestrian accident involving my daughter in California. She was struck by a van while in a crosswalk, resulting in cracked ribs, multiple pelvic fractures, and necessitating two surgeries involving plates and screws. Unfortunately, she also has nerve damage in one leg and requires knee surgery in the upcoming months. After three long months, she is on the path to recovery. Although she still experiences significant pain and relies on crutches, the doctors remain optimistic about her future since she is young.
As non-U.S. citizens visiting for a business trip, we had travel insurance provided by my daughter’s employer. Thankfully, we haven’t incurred any medical expenses here in the U.S., but the total costs have approached $2 million. I stayed by her side in the hospital for two months until we were able to return home.
We decided to hire a lawyer since we were unsure how to navigate the legal landscape as foreign residents. The individual responsible for the accident has not shown any concern for my daughter’s well-being and was driving a company vehicle. It later came to our attention that the company had not even reported the accident to their insurance provider. Our lawyer discovered that their coverage policy has a limit of $1.5 million.
I have some questions regarding the compensation process. If we pursue a claim for my daughter’s suffering and the necessary treatments upon our return home, will we be required to reimburse our insurance company for the medical costs first? If we seek the maximum compensation allowed, it seems that the lawyer’s fees and medical expenses might not be fully covered, leaving us to cover some costs out of pocket.
The lawyer mentioned that we could potentially request a larger sum, but we also face the risk that the company might declare bankruptcy and we could end up receiving nothing. From our perspective, medical expenses and compensation for suffering should be treated separately. Shouldn’t our insurance company be the one seeking reimbursement from the other party for the medical expenses? Any guidance on how to approach this situation would be greatly appreciated.
I’m really sorry to hear about your daughter’s accident and the difficult situation your family is facing. Here are some thoughts regarding your questions:
Reimbursement of Medical Costs: In general, if your daughter’s travel insurance covered her medical expenses, they may have a right to be reimbursed from any settlement you receive from the other party’s insurance. This means that, yes, if you receive a settlement, you might need to pay back the insurance company for what they covered, unless otherwise negotiated.
Suffering and Medical Costs: It’s important to differentiate between what is reimbursable for medical expenses and compensation for pain and suffering. Pain and suffering damages are typically meant to compensate for the physical and emotional distress caused by the accident. If you are claiming for both, you should discuss with your lawyer how to structure your claim to ensure both aspects are covered.
Insurance Company’s Role: Your travel insurance company may have subrogation rights, which means they can pursue compensation from the at-fault party on your behalf. It might be beneficial to ask your lawyer whether your insurance company is planning to seek reimbursement, as this could affect the amount you are able to claim for pain and suffering.
Settlement Strategy: Your lawyer’s suggestion to potentially ask for more is a common strategy, especially if the insurance limits are not enough to cover all expenses. However, it’s a balancing act between maximizing your claim and the risk of the company declaring bankruptcy. It’s crucial to have a discussion with your lawyer about the best course of action considering your specific circumstances.
Legal Advice: Given the complexities of cross-border legal matters and insurance claims, it’s wise to continue relying on your lawyer’s expertise. They can help guide you through the process while considering both your immediate financial needs and long-term recovery.
Ultimately, ensure that you have thorough communication with your lawyer to understand how best to approach your claim, to maximize the potential recovery for your daughter while managing the obligations to your insurance provider. Best wishes for your daughter’s continued recovery.