Insurance policies provide us with protection in the event of a Massachusetts personal injury accident, but they can be incredibly confusing. Conflicts often arise after an accident when it comes to determining which policies will apply, whether the injured party is entitled to the full policy limits and whether another insurer can assert a subrogation claim against a party who received insurance policy proceeds on top of recovery from another source. Our diligent car accident lawyers have handled numerous claims involving complex insurance disputes and we are ready to help you fight for the settlement or judgment that you deserve.
In the recent case of Enterprise Rent-a-Car Company of Boston, Inc. v. Arbella Mutual Insurance Company, a Massachusetts appellate court considered whether the self-insurer owner of a rental car can assert a subrogation right under a Massachusetts statute against the insurance carrier of the person who operated the vehicle to recoup personal injury protection benefits that it paid.
The driver rented a car from the plaintiff and was involved in an accident while operating the rental car resulting in injuries to him and the three passengers who were in the vehicle. The rental car company paid over $15,000 in personal injury protection (PIP) benefits to the passengers. The rental company then filed a motion seeking to compel arbitration on the issue of whether it could seek subrogation from the renter’s insurer or the other driver’s insurer. The renter’s insurer moved for summary judgment and the lower court granted the motion on the basis that it was the renter’s personal insurer and should not be required to pay for the PIP benefits to the passengers.