Collateral Source Reduction Rule with Medpay in Connecticut

In Connecticut, a person may purchase an automobile insurance policy with a medical payments provision (Medpay). Medpay provides payments for medical care up to a specified amount, provided in an insurance policy.

As an example – a claimant/insured is involved in an auto accident. His motor vehicle insurance company pays $5,000 for medical payments. The insured pays a total of $2,200 for auto insurance coverage with $200 of the premium for the Medpay coverage.

A jury awards the following as damages

$5,000 for economic damages (all economic damages are covered and paid for by Medpay).

$15,000 for non-economic damages

Total verdict of $20,000

In this situation: the award will be reduced by the $5,000 in economic damages, the amount of the Medpay, less than $200 paid for the Medpay coverage.

The final judgment becomes $15,200. $15,000 non-economic damages plus $5,000 economic damages less $5,000 collateral source reduction plus $200 cost of Medpay coverage

See Jones v Riley, 263 Conn 93 (2003).

If you have an auto insurance claim in Connecticut, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue, Hamden, CT 06518



Time Limitations to Suit – Insurance Policy

It is common for an insurance policy to set a time limit in which to file suit, concerning a claim.

For example, you have an insurance policy with Giant Insurance Company. The insurance policy covers claims concerning homeowner’s insurance. The insurance policy provides that a suit concerning a claim against Giant must be commenced within 2 years from the date of the incident which caused the claim, such as a fire or theft.

Connecticut State law provides a statute of limitations period of six years, for contract claims. The legal issue is whether the insurance policy applies – the limitations period of 2 years in the insurance policy overrides the state statute of limitations.

Although I could not find a specific Connecticut Appeals Court case, the general rule is that parties are free to decide, by contract, the time frame in which to bring suit. (In Connecticut, there is specific law which applies to underinsured motorist claims which require a minimum amount of time to file suit, which can override an insurance policy provision).

This is a potential trap for claimants. A claimant who is having a problem with his or her own insurance company must review his or her insurance policy. It is vital to start suit within any time limit set by an insurance policy.

If you are having problems with an insurance claim, please feel free to contact

Attorney Robert M. Singer

2572 Whitney Avenue

Hamden, CT 06518


Serving all of Connecticut