The purpose of the no-fault law is to make it easier for injured New Yorkers to get the medical care they need without worrying about having to sue someone in order to get their bills paid. Of course, no-fault benefits only cover economic loss like bills and income. These benefits do not provide for non-economic loss such as pain and suffering.
The insurance companies also benefit from the no-fault law. As part of the concession for the payment of economic loss without showing fault, New York instituted a requirement that any lawsuit filed for a physical injury arising out of the use or operation of a vehicle must be a “serious injury” as defined by the Insurance Law §5102. Bodily injury coverage is the portion of a vehicle owner’s insurance policy that would cover a claim for personal injuries, pain and suffering and other “non-economic” losses.