Insurance companies oftentimes work painstakingly slow when compensation is on the line, and they do this on purpose. The longer a case takes to resolve or the longer they can get it held up with appeals, the more likely it is that the client will accept a lower settlement or drop the case simply to put an end to the drama. However, dragging a case out can also backfire, because a little known law suggests that they may have to pay interest on past due awards. We take a closer look at how workers’ compensation claims in Minnesota can accrue interest in your favor.
Accruing Interest On Your Injury Claim
An oft-overlooked benefit that many injured workers may miss is in regards to interest payments on unpaid work injury claims. Minnesota law spells it out as follows:
“Any payment of compensation, charges for treatment under section 176.135, rehabilitation expenses under section 176.102, subd. 9, or penalties assessed under this chapter not made when due shall bear interest from the due date to the date the payment is made at the rate set by section 549.09, subd. 1.”
In other words, if a judge rules that you are owed wage loss benefits or compensation for rehabilitation expenses, the clock starts ticking as soon as the judge makes the ruling. The insurance company can delay payment or legally file an appeal that could drag the case on weeks, months or even years longer, but they do this knowing that the clock has already started. Assuming an appeals judge agrees with the original ruling or the insurance company eventually decides to make their required payment, there may be interest tied to the original amount. In Minnesota, injuries that occurred on or after October 1, 2008 are subject to 4% annual interest.
This means that if you are owed $20,000 in lost wages, but the insurance company took a year from the date of the original ruling to make that payment, they would actually owe you $20,800. If a different type of claim is being filed, the interest percentage may be even higher. For example, for a judgment or award of more than $50,000, other than a judgment or award for or against the state or a political subdivision, the interest rate shall be 10% a year until paid. For certain disputed benefits, it’s 12%. You may be owed way more than you actually realize by the time the insurance company opts to settle their debts.
But here’s the thing. Many insurance companies assume that you’re unaware of this interest requirement. They’ll cut you a check for the original amount and hope you’re none the wiser. This may fly if you’re on your own, but it won’t get past an attorney. Having an attorney by your side to catch these types of issues or other shady moves can save you thousands of dollars or more on your injury claim. Don’t let the insurance company prey on your inexperience with the injury claim system. Let us go to work for you and ensure you get every penny that you’re entitled to receive.
You can learn more about interest payments on unpaid and overdue claims on this page, but we know that it can be a little confusing to calculate what you may be owed if your payments are late or they are finally coming after being delayed for some time. Let the team at Hey Workers sort through your claim and ensure you don’t just get paid your claim amount, you also get paid any owed interest.
For more information about interest in an injury claim, or for help with a different aspect of the injury claims process, connect with the team at Hey Workers today at (844) 439-9675.
