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Interest Can Be Collected by Provider for Late Payment By Carrier

December 9th, 2008

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Schappell v. Motorists Mutual Ins. Co.

, 934 A.2d 1184 (Pa. 2007).

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The Supreme Court has ruled that a provider, in this case a chiropractor, can collect statutory interest in the amount of 12% per year under Section 1716 of the Motor Vehicle Financial Responsibility Law. The Supreme Court reached this decision despite the lack of specific language in the statute providing such relief. The Supreme Court found this way in part because that Dr. Schappell was part of a group for which the statutory interest benefit was intended. The Court also found that paying interest to the provider for overdue benefits assisted in the In “the prompt and adequate payment of basic loss benefits for motor vehicle accident victims.”

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Tags: Medical Providers