Tort calculation

Tort calculation

by Kelly M. Acevedo -
Number of replies: 2

I am having difficulty understanding how this calculation was done, can someone please help:

" $2,700 " is the correct response to:

An insured is injured in a not at-fault accident. He has basic PIP with a $500 deductible. He suffers $7,500 in medical bills and $2,000 in lost wages. How much can he recover in a tort claim?

In reply to Kelly M. Acevedo

Re: Tort calculation

by Jan Bradburn- -
Kelly, You must first subtract the deductible from the medical expenses, then you can apply the percentages. $7500 - %500 = $7000 X 80% = $5600 $2000 60 = $1200 $5600 + $1200 = $6800 The insured receives $6800 from PIP, but he is still out-of-pocket $2700 so he can recover this amount ($2700) in a tort claim (lawsuit). $7500 + $2000 = $9500 - $6800 = $2700 Jan