Short Answer

Yes. In North Carolina, uninsured motorist (UM) coverage pays the damages you are legally entitled to recover from an uninsured at-fault driver, which includes pain and suffering. However, you cannot be paid twice for the same medical bills or wage loss already covered by workers’ compensation, and any workers’ compensation lien must be addressed from your UM recovery.

Understanding the Problem

In North Carolina, can an injured employee recover pain and suffering through their own UM policy when a work-related crash leads to workers’ compensation paying medical bills? One key fact here is that the workers’ compensation carrier already paid the hospital and emergency bills.

Apply the Law

North Carolina law requires UM coverage to compensate you for the same categories of damages you could recover from the uninsured driver in court, including non-economic losses like pain and suffering. Policy language and state law prevent duplicate payment of medical expenses already covered by workers’ compensation. A workers’ compensation lien generally attaches to third-party recoveries (including UM proceeds) and must be resolved by agreement or court order. The typical forum is a claim with your auto insurer; if suit is needed, file in the Superior Court. You must also comply with policy notice and service requirements and observe the personal injury filing deadline.

Key Requirements

• UM applies: The at-fault driver is uninsured and you are legally entitled to recover damages.
• Covered damages: UM can include pain and suffering, but not duplicate payment of medical bills or wage loss already paid by workers’ comp.
• Workers’ comp lien: The comp carrier has a lien on third-party/UM recoveries that must be honored or reduced by court order.
• Notice and service: Give prompt notice to the UM insurer and, if you file suit, ensure the insurer is properly served per policy/statute.
• Timing: File within North Carolina’s personal injury deadline and preserve UM rights under your policy conditions.

What the Statutes Say

• North Carolina Gen. Stat. § 20-279.21 (Motor vehicle liability; UM/UIM) – Requires UM coverage and ties payment to damages you are legally entitled to recover from an uninsured motorist; includes key policy conditions.
• North Carolina Gen. Stat. § 97-10.2 (Workers’ comp liens and third-party recoveries) – Establishes the workers’ compensation lien and the court’s authority to determine distribution and reduce the lien in appropriate cases.

Analysis

Apply the Rule to the Facts: Because workers’ compensation already paid the hospital and emergency bills, the UM insurer can avoid duplicating those medical payments. That does not bar recovery of pain and suffering, which workers’ compensation does not pay. Any UM settlement must account for the workers’ compensation lien and policy setoffs. Mileage and other out-of-pocket items should be reviewed to ensure they are either properly included or excluded to avoid double payment.

Process & Timing

1. Who files: The injured person. Where: First with their own auto insurer; if litigation is needed, file in Superior Court in the appropriate North Carolina county. What: Present a UM demand package (medical records, bills, wage info, and pain-and-suffering proof); if suit, file a complaint against the uninsured driver and ensure the UM insurer is timely served under the statute/policy. When: Generally within the personal injury statute of limitations; also comply with prompt policy notice requirements.
2. Coordinate the workers’ compensation lien: obtain written consent to settlement from the employer/carrier or move in Superior Court to determine distribution and, if warranted, seek lien reduction. Timelines vary by county and case complexity.
3. Finalize settlement: execute releases consistent with policy terms and any court orders resolving the lien; the insurer issues payment up to UM limits after lien resolution.

Exceptions & Pitfalls

• Settling without resolving the workers’ comp lien or without required approvals can delay or jeopardize disbursement.
• Double-counting medical bills or wage loss already paid by workers’ comp will be excluded; focus proof on non-duplicative losses like pain and suffering.
• Failing to serve the UM insurer when suing the uninsured driver can undermine UM coverage defenses.
• Policy conditions (notice, cooperation, medical exams) matter; missing them risks denial.
• If the at-fault driver is not legally “uninsured” under the statute/policy, UM may not apply.

Talk to a Personal Injury Attorney

If you’re dealing with a UM claim after a work-related crash and need to sort out pain and suffering, setoffs, and a workers’ comp lien, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.