Understanding catastrophic injuryWhat is a Catastrophic Injury?
What is a catastrophic injury?
A catastrophic injury can be a severe, life-changing injury resulting from an auto accident that requires ongoing, long-term medical care and support. These injuries typically involve significant impairment to brain function, spinal cord damage or other conditions requiring continuous medical treatment, rehabilitation and support services.
When the MCCA was created in 1978, the statutory retention amount was $250,000. In other words, after an insurance company paid $250,000 in PIP benefits to or on behalf of a claimant, the MCCA would reimburse the insurer for additional payments made. Beginning in 2002, the statute increased the retention amount to $300,000 and a schedule was created by the Legislature to allow additional increases to the retention amount. Effective July 1, 2011, the statutory retention amount increased to $500,000 and now adjusts bi-annually by the lesser of 6% or the Consumer Price Index. The retention amount is $675,000 for July 1, 2025, to June 30, 2027.
Types of Catastrophic Injuries
Traumatic Brain Injury (TBI): Damage to the brain that affects cognitive function, memory, mobility and daily activities
Spinal Cord Injury: Damage to the spinal cord that leads to paralysis or loss of function below the injury site
Severe Burns: Extensive burn injuries that need ongoing reconstruction and wound care
Amputations: Loss of limbs that require prosthetics, rehabilitation and adaptive equipment
Multiple Trauma: A combination of serious injuries that impact multiple body systems
Severe Neurological Conditions: Lasting damage to the nervous system that affects movement, feeling or thinking
Claims by Injury Type
The chart below shows how MCCA claims are distributed by primary injury type. Traumatic brain injuries make up the largest category. This highlights the severity of these injuries and the long-term care they may require.
Click the chart above for a closer look.