Replacement Services under Basic PIP cover the cost of household services performed by whom?

• A. The insured's employer
• B. Family members
• C. Household services performed by others
• D. Medical providers

Answer: (C)

Replacement services in Basic PIP are meant to cover the cost of household tasks that the injured person would have handled themselves but cannot while recovering, and the payment goes to the person who actually performs those tasks. In other words, if cleaning, cooking, laundry, yard work, or similar chores need to be done because of the injury, the insurer pays the person who does those chores for the insured. It is not paid to the insured, not to the insured’s employer, not to a family member in the home, and not for medical services. That’s why the best choice is household services performed by others—the services must be provided by someone other than the insured, to substitute for the tasks the insured can no longer do.