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MI no-fault bill clears House committee

By Laura Weber, Michigan Public Radio Network



A proposal to dramatically change Michigan's no-fault auto insurance law has cleared its first major hurdle Thursday in the state Legislature. As Michigan Public Radio's Laura Weber reports, the measure would end lifetime medical coverage for people seriously injured in car accidents.

The auto-insurance proposal would also prevent voters from overturning the law via a ballot referendum. That's because there's a 50-thousand dollar appropriation in the bill that makes the measure referendum-proof. Democrats tried and failed to remove that section of the bill. Democratic state Representative Andrew Kandrevas says the appropriation amounts to a political gift.

"It is a gift to the insurance companies if you feel the will of the people wouldn't support this," he says.

A wide margin of Michigan voters rejected legislative changes to Michigan's auto no-fault system twice in the early 1990s. The measure was approved along mostly party lines. Two Republicans broke ranks to vote with Democrats against the GOP proposal.

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