Hawaii PIP Reimbursement: The 50 Percent Duplicate Benefits Rule

By the FigureMyTax Editorial Team · How we calculate

When you recover in tort in Hawaii, by suit or settlement, in a way that duplicates PIP benefits already paid, your motor vehicle insurer is reimbursed 50 percent of the PIP benefits paid to you or on your behalf, up to the maximum limit.

The rule

Hawaii Rev. Stat. 431:10C-307 says that whenever a person effects a tort liability recovery for accidental harm, whether by suit or settlement, which duplicates PIP benefits already paid, the motor vehicle insurer shall be reimbursed fifty percent of the PIP benefits paid to or on behalf of the person receiving the duplicate benefits, up to the maximum limit.

A worked example

Suppose PIP paid $10,000 of your medical expenses and you settle with the at-fault driver for a total that includes those expenses. Your insurer is reimbursed 50 percent of the $10,000, or $5,000. The calculator assumes the whole tort recovery duplicates PIP up to the amount PIP paid, which is our reading; ask an attorney how it applies to a settlement that does not itemize damages.

Why it matters

The rule means a tort recovery does not fully replace PIP, but you keep the other 50 percent of the duplicated benefits. It applies only if you are allowed to sue under the threshold in section 431:10C-306.

Other claims on a settlement

Health plans, Medicare and Medicaid have their own rights; see Hawaii medical liens. Attorney fees come out too; see Hawaii attorney fees.

Using the calculator

See the effect in the Hawaii no-fault calculator, and read what PIP covers.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Hawaii's rules apply to your specific case with a licensed Hawaii attorney.