Auto Accident Demand Letter - Indiana

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF INDIANA

[________________________________]
Attorneys at Law
[________________________________]
[________________________________], Indiana [____]
Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

[________________________________]
[________________________________]
[________________________________]
[________________________________], [____] [____]

RE: SETTLEMENT DEMAND — MOTOR VEHICLE COLLISION
Our Client: [________________________________]
Date of Loss: [__/__/____]
Your Insured: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Claimant") in connection with the motor vehicle collision that occurred on [__/__/____] in [________________________________] County, Indiana. This letter constitutes a formal demand for settlement of all claims arising from this incident.

I. INDIANA-SPECIFIC LEGAL FRAMEWORK

A. Statute of Limitations

Under Ind. Code § 34-11-2-4, the statute of limitations for personal injury actions is two (2) years from the date of the injury.

The limitations period in this matter expires on [__/__/____].

B. Modified Comparative Fault (51% Bar)

Indiana follows modified comparative fault under Ind. Code § 34-51-2-6. A claimant is barred from recovery if the claimant's fault is greater than the fault of all persons whose fault proximately contributed to the damages. Where recovery is permitted, damages are reduced by the claimant's percentage of fault under Ind. Code § 34-51-2-5.

Our client bears no fault whatsoever for this collision.

C. No Damage Caps on Compensatory Damages (Auto Cases)

Indiana does not impose statutory caps on compensatory damages in automobile accident personal injury cases. Note: The medical malpractice cap under Ind. Code § 34-18-14-3 does not apply to auto accident claims.

D. Minimum Insurance Requirements

Indiana requires minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage under Ind. Code § 9-25-4-5. All auto insurance policies must also include uninsured and underinsured motorist (UM/UIM) coverage unless the policyholder explicitly rejects it in writing.

II. PRESERVATION OF EVIDENCE DEMAND

You are hereby placed on notice to preserve all evidence related to this claim, including but not limited to:

☐ Complete claims file, including all adjuster notes and evaluations
☐ All photographs, videos, and surveillance footage
☐ All recorded or written statements
☐ Vehicle inspection reports, repair estimates, and salvage records
☐ Event Data Recorder (EDR) / "black box" data
☐ Cell phone records of the insured driver
☐ Employment and driving records of the insured driver
☐ All insurance policy documents

III. STATEMENT OF FACTS

On [__/__/____], at approximately [____] [a.m./p.m.], our client was [________________________________] on [________________________________] in [________________________________] County, Indiana. At that time, your insured, [________________________________], was operating a [____] [________________________________] (VIN: [________________________________]).

[________________________________]
[Describe the collision in detail]
[________________________________]

The [________________________________] [Indiana State Police / County Sheriff / Municipal Police] responded to the scene and prepared Crash Report No. [________________________________]. The report [________________________________] [describe findings, citations issued, fault determination].

IV. LIABILITY ANALYSIS

A. Defendant's Negligence

Your insured breached the duty of care owed to our client by:

☐ Failing to maintain a proper lookout — Ind. Code § 9-21-8-24
☐ Following too closely — Ind. Code § 9-21-8-14
☐ Failing to yield the right of way — Ind. Code § 9-21-8-29 et seq.
☐ Speeding or exceeding a safe speed for conditions — Ind. Code § 9-21-5-1 et seq.
☐ Running a red light or stop sign — Ind. Code § 9-21-8-41
☐ Improper lane change — Ind. Code § 9-21-8-2
☐ Distracted driving / texting — Ind. Code § 9-21-8-59
☐ Driving under the influence — Ind. Code § 9-30-5-1 et seq.
☐ Other: [________________________________]

B. Comparative Fault Analysis

Under Ind. Code § 34-51-2-6, our client bears zero percent (0%) fault for this collision. The evidence conclusively establishes sole responsibility on the part of your insured.

C. Negligence Per Se

Violation of Indiana traffic statutes constitutes negligence per se. Huff v. Travelers Indemnity Co., 266 Ind. 414, 363 N.E.2d 985 (1977). Your insured's violation of Ind. Code § [________________________________] establishes negligence as a matter of law.

V. MEDICAL TREATMENT SUMMARY

A. Emergency / Immediate Treatment

B. Ongoing Treatment

C. Diagnosis Summary

☐ [________________________________]
☐ [________________________________]
☐ [________________________________]

D. Prognosis

[________________________________]

VI. ITEMIZED MEDICAL EXPENSES

Estimated Future Medical Expenses

VII. LOST WAGES AND EARNING CAPACITY

Employer: [________________________________]
Position: [________________________________]
Rate of Pay: $[________] per [hour/week/month/year]

☐ Employer verification letter enclosed
☐ Tax returns / pay stubs enclosed

VIII. PROPERTY DAMAGE

IX. PAIN AND SUFFERING / NON-ECONOMIC DAMAGES

Our client has endured significant pain and suffering, including but not limited to:

☐ Physical pain and suffering (past and ongoing)
☐ Mental anguish and emotional distress
☐ Loss of enjoyment of life
☐ Inconvenience and disruption of daily activities
☐ Scarring and/or disfigurement
☐ Fear and anxiety
☐ Sleep disruption

Indiana does not cap compensatory damages in auto accident cases.

Non-Economic Damages Claimed: $[________]

X. LOSS OF CONSORTIUM

[If applicable:]

Claimant's spouse, [________________________________], has suffered a loss of consortium. Indiana recognizes loss of consortium as a derivative claim for loss of love, companionship, affection, and sexual relations. Troue v. Marker, 253 Ind. 284, 252 N.E.2d 800 (1969).

Loss of Consortium Claimed: $[________]

XI. TOTAL DAMAGES SUMMARY

XII. SETTLEMENT DEMAND

Based upon the foregoing, we hereby demand the sum of:

$[________________________________]

This demand is open for thirty (30) days from the date of this letter, expiring on [__/__/____].

XIII. BAD FAITH WARNING

Ind. Code § 27-4-1-4.5 — Unfair Claims Settlement Practices

Under Ind. Code § 27-4-1-4.5, an insurer that engages in unfair claims settlement practices is subject to regulatory penalties and potential liability. Unfair practices include:

☐ Misrepresenting pertinent facts or insurance policy provisions
☐ Failing to acknowledge and act reasonably promptly upon communications
☐ Failing to adopt and implement reasonable standards for prompt investigation
☐ Refusing to pay claims without conducting a reasonable investigation
☐ Failing to affirm or deny coverage within a reasonable time
☐ Not attempting in good faith to effectuate prompt, fair, and equitable settlements when liability is reasonably clear
☐ Compelling insureds to institute litigation by offering substantially less than ultimately recovered

Indiana courts have also recognized a common-law claim for bad faith refusal to settle within policy limits, exposing the insurer to liability for any judgment in excess of policy limits. Erie Insurance Co. v. Hickman, 622 N.E.2d 515 (Ind. 1993).

Your company is on notice that failure to respond to this demand in good faith may result in bad faith liability.

XIV. COLLATERAL SOURCE AND PUNITIVE DAMAGES

Collateral Source Rule

Under Ind. Code § 34-44-1-2, evidence of collateral source payments is admissible in Indiana, and the court may reduce a judgment by amounts the claimant received from collateral sources. However, the claimant may present evidence of amounts paid to secure those benefits. This modified collateral source rule should be considered in evaluating the claim.

Punitive Damages

Under Ind. Code § 34-51-3-4, punitive damages are capped at the greater of three (3) times actual damages or $50,000. Notably, 75% of any punitive damages award is paid to the state Violent Crimes Victims Compensation Fund, with the remaining 25% to the plaintiff.

XV. ENCLOSED DOCUMENTS

☐ Medical records and bills from all treating providers
☐ Police/crash report
☐ Photographs of vehicle damage and injuries
☐ Employer verification of lost wages
☐ Property damage estimates/repair invoices
☐ Witness statements (if available)
☐ [________________________________]

XVI. RESPONSE REQUESTED

Please confirm receipt and provide a substantive response within thirty (30) days. Failure to respond will be considered a rejection of this demand.

Respectfully submitted,

[________________________________]
Attorneys for [________________________________]

By: _________________________________
[________________________________]
Indiana Bar No. [________________________________]
[________________________________]
[________________________________], Indiana [____]
Telephone: [________________________________]
Email: [________________________________]

INDIANA PRACTICE NOTES AND CHECKLIST

☐ 51% Bar Rule: Plaintiff barred if fault greater than combined fault of all responsible persons (Ind. Code § 34-51-2-6)
☐ No Compensatory Damage Caps: Full compensation available in auto cases
☐ Collateral Source: Modified rule — evidence admissible, judgment may be reduced (Ind. Code § 34-44-1-2)
☐ Punitive Damages: Capped at 3x compensatory or $50,000, whichever greater; 75% to state fund (Ind. Code § 34-51-3-4)
☐ Government Claims: Indiana Tort Claims Act (Ind. Code § 34-13-3) — 270-day notice requirement; $700,000 per person / $5,000,000 per occurrence cap
☐ UM/UIM Coverage: Must be offered; rejection must be in writing
☐ Minimum Insurance: $25,000/$50,000/$25,000 (Ind. Code § 9-25-4-5)
☐ Guest Statute: Repealed — no longer applicable

SOURCES AND REFERENCES

• Ind. Code § 34-11-2-4 (Statute of limitations)
• Ind. Code §§ 34-51-2-5, 34-51-2-6 (Comparative fault)
• Ind. Code § 27-4-1-4.5 (Unfair claims settlement practices)
• Ind. Code § 34-44-1-2 (Collateral source)
• Ind. Code § 34-51-3-4 (Punitive damages)
• Ind. Code Title 9 (Motor Vehicles)
• Indiana General Assembly: https://iga.in.gov