Israel's Road Accident Victims Compensation Law: What It Says and Who Is Entitled to Compensation

Summary

The Road Accident Victims Compensation Law, 1975 (Israel), commonly known in Israel by its Hebrew acronym, is the main legal framework in Israel for compensating people injured in a road accident involving a motor vehicle. The article explains the principle of absolute liability on which the Law is based, who is considered entitled to compensation, the role of the insurance obligation and of the "Karnit" fund, the way the legal proceedings are conducted, including the appointment of a medical expert by the court, and key issues such as exclusivity of the cause of action, the deduction of Bituach Leumi (the National Insurance Institute) benefits, the cap on compensation for pain and suffering, and the possibility of receiving an interim payment. The information is provided as a general explanation only and is not a substitute for individual legal advice.

What Is the Road Accident Compensation Law

The Road Accident Victims Compensation Law, 1975, was enacted to provide a distinct framework for the rights of road accident victims. Before it was enacted, a person injured in a road accident had to contend with the ordinary rules of tort law, including the requirement to prove that someone had been negligent and caused the accident. The Law fundamentally changed the picture and established a separate, faster and more certain track for compensating people who suffer bodily injury in road accidents.

The central idea of the Law is to ensure that a person who suffers bodily injury in a road accident receives compensation for the damage, without being forced into lengthy litigation over who was at fault for the accident. In this way, the Law seeks to give certainty to victims and to the public as a whole, and to spread the risk involved in driving through an orderly insurance mechanism.

The Principle of Absolute Liability

The heart of the Road Accident Compensation Law is the principle of absolute liability. It means that a person injured in a road accident involving a motor vehicle is entitled to compensation without having to prove fault on the part of anyone. There is no need to show that the driver was negligent, that the vehicle was defective, or that someone else caused the accident. The very fact that the person was injured in a road accident, as defined in the Law, is what gives rise to the right to compensation.

This difference sets the Road Accident Compensation Law track apart from most other tort claims. In an ordinary tort claim, the plaintiff must prove that the defendant owed them a duty of care, that the defendant breached it, and that this breach caused the damage. In a claim under the Road Accident Compensation Law, the question of fault drops off the agenda, and the case focuses on the occurrence of the accident itself, the connection between the accident and the injury, and the extent of the damage caused.

Note that the scope of entitlement and the exceptions to it are set out in the Law itself, and each case has its own characteristics. It is therefore important to examine each event on its merits against the provisions of the Law.

The Insurance Obligation and Compulsory Insurance

For the compensation mechanism to work, the Law relies on an insurance obligation that applies to every vehicle. This insurance obligation, known as "compulsory insurance", is intended to ensure that behind every vehicle on the road there is a policy covering the bodily injury of those injured in a road accident.

This means that when a person is injured in a road accident, the claim is usually directed at the insurance company that issued the compulsory insurance for the vehicle involved. The injured person does not have to deal directly with the driver's own pocket, but with a regulated insurer. This arrangement strengthens the certainty that the compensation awarded can actually be collected.

The very existence of an insurance obligation underlines how important it is to make sure that a vehicle has valid compulsory insurance. Driving without valid compulsory insurance is an offence, and it may also affect the rights of those injured and the way compensation is obtained.

The "Karnit" Fund: When There Is No Insurance or the Driver Was Not Identified

Not every accident has an identified insurer behind it. There are situations in which the vehicle that caused the injury did not have valid insurance, or the driver fled the scene and cannot be identified, that is, a "hit and run" case. So that those injured in these situations are not left without a remedy, there is a dedicated fund called "Karnit".

Karnit is a fund for compensating road accident victims, and its role is to step into the shoes of the missing insurer in the appropriate situations. When there is no valid insurance, or when the driver who caused the injury was not identified, it is possible to apply to Karnit to receive compensation. In this way, the fund completes the protective framework of the Law and ensures that victims who have no insurer to claim against can also exercise their rights.

An application to Karnit is subject to the conditions and rules set out in the Law, and each case is examined according to its circumstances. The very existence of the fund illustrates the Law's aim of not leaving people who suffer bodily injury in a road accident without a route to compensation.

Who Is Entitled to Compensation under the Road Accident Compensation Law

The question of who is entitled to compensation derives directly from the definitions in the Law. In principle, a person injured in a road accident involving a motor vehicle may be entitled to compensation under the Law, by virtue of the principle of absolute liability and without the need to prove fault.

The circle of those entitled is not necessarily limited to the driver. It may include passengers in the vehicle, as well as pedestrians who were injured. In situations where more than one vehicle is involved, the Law also sets out arrangements regarding the party from which compensation will be received. However, the precise definitions of "road accident", of "motor vehicle" and of the scope of entitlement are found in the Law, and there are situations and exceptions in which entitlement does not exist or is qualified.

Because of this complexity, determining entitlement in a specific case requires examining the circumstances of the event against the wording of the Law. No definite conclusion about any particular case should be drawn from this general explanation.

Conducting the Proceedings and Appointing a Medical Expert

A distinctive feature of a claim under the Road Accident Compensation Law concerns the way the medical question is examined. In ordinary tort claims, each party usually submits its own medical expert opinion, and the court decides between the conflicting opinions. In a claim under the Road Accident Compensation Law the situation is different: a medical expert is appointed by the court, and the parties do not submit their own expert opinions as is customary in ordinary tort claims.

This mechanism is designed to place the medical determination in the hands of a neutral expert appointed by the court, thereby narrowing the medical dispute and making the proceedings more efficient. The expert examines the injured person's condition and makes findings regarding the injury and any disability, and these findings serve as a central basis for the rest of the proceedings.

Understanding how to deal with the court-appointed expert is very important for handling the claim properly, since the expert's findings have a direct bearing on the amount of compensation.

Exclusivity of the Cause of Action

Another important principle in the Road Accident Compensation Law is "exclusivity of the cause of action". It means that a person entitled to compensation under the Road Accident Compensation Law cannot at the same time sue on an ordinary tort cause of action for the same injury. In other words, when the event falls within the scope of the Road Accident Compensation Law, the compensation track is the one set by the Law, and a general tort claim cannot also be brought for the same injury.

This principle has considerable practical implications. On the one hand, it guarantees the injured person a certain route to compensation without having to prove fault. On the other hand, it defines the limits of the claim and the way it must be conducted. Correctly classifying the event, that is, whether or not it falls within the scope of the Road Accident Compensation Law, is an essential stage in handling every case, and sometimes it requires legal clarification in its own right.

Calculating the Compensation and Its Components

Compensation under the Road Accident Compensation Law is intended to restore the injured person's position as far as possible. It may include various heads of damage, among them pecuniary damage, such as loss of earnings and expenses incurred as a result of the injury, as well as non-pecuniary damage, that is, pain and suffering.

As regards the non-pecuniary damage component, the Law sets out a special arrangement. Compensation for non-pecuniary damage is subject to a cap, and it is calculated according to a formula set in regulations. In other words, unlike a situation in which the court assesses pain and suffering freely, under the Road Accident Compensation Law there is a structured mechanism that defines how this component is calculated and its upper limit.

It should be emphasized that the amount of compensation in each case depends on the individual details of the injured person and of the injury, and therefore no amount or outcome whatsoever should be inferred from a general article.

Deduction of National Insurance Institute Benefits

Another central aspect of calculating compensation concerns the relationship between the compensation and benefits paid by the National Insurance Institute. A person injured in a road accident may be entitled to benefits from the National Insurance Institute, for example because of an injury recognized under one of the various National Insurance frameworks.

The Law provides that benefits paid by the National Insurance Institute are deducted from the compensation. This means that the rights vis-à-vis the National Insurance Institute and the claim under the Road Accident Compensation Law must be examined in parallel, taking into account the connection between them. Coordinated handling on both levels is important in order to exhaust all rights and to prevent duplication or an inappropriate deduction.

Because of this interplay between the proceedings, an understanding of both systems together is usually required: the compensation system under the Road Accident Compensation Law and the system of rights at the National Insurance Institute.

Interim Payment before the End of the Proceedings

Legal proceedings may take time, and in the meantime the injured person may need resources for treatment and living expenses. The Law recognizes this difficulty, and under certain conditions it is possible to receive an interim payment before the proceedings have ended.

The interim payment is intended to provide an initial response to the injured person's urgent needs, even before the claim has been fully heard and final compensation awarded. Receiving an interim payment is subject to the conditions set out in the law and to an examination of the circumstances of the case, but it illustrates the Law's aim of providing the injured person with a response at the interim stage as well.

Practical Examples

First example: a passenger injured in an accident

A person was travelling as a passenger in a private car, and the car was involved in a road accident. The passenger was injured and suffered an injury that required medical treatment and absence from work. On the Road Accident Compensation Law track, the passenger does not need to prove which of the drivers was at fault for the accident. It is enough that this is a road accident involving a motor vehicle to give rise to the right to consider compensation, by virtue of the principle of absolute liability. In such a case, the medical question will be examined by an expert appointed by the court, and alongside the claim the rights vis-à-vis the National Insurance Institute should also be checked, since benefits from there are deducted from the compensation. The exact details depend on the circumstances and cannot be assessed in advance.

Second example: a pedestrian hit by a vehicle that fled

A person was crossing the road, and a vehicle hit them and fled the scene without it being possible to identify the driver, that is, a hit-and-run event. In this situation there is no identified insurer to whom the claim can be directed. This is where the "Karnit" fund comes into the picture, compensating victims when the driver who caused the injury was not identified or when there is no valid insurance. In this case too, the principles of the Law apply, including examination of the injury by a court-appointed expert and taking National Insurance Institute benefits into account. An application to Karnit is subject to the conditions set out in the law.

In Conclusion, and Contacting the Office

The Road Accident Victims Compensation Law, 1975, establishes a distinct compensation track for people who suffer bodily injury in road accidents, based on absolute liability, on an insurance obligation, and on complementary mechanisms such as the "Karnit" fund and the possibility of an interim payment. Alongside its advantages, the Law includes complex rules regarding entitlement, exclusivity of the cause of action, the deduction of National Insurance benefits and the way compensation is calculated.

The information in this article is general only and does not constitute legal advice or a substitute for an individual examination of a specific case. If you were injured in a road accident and wish to look into your rights, the Yaniv Gavish Law Office, which practices in the fields of tort law and National Insurance, will be glad to assist you with an initial review.

Yaniv Gavish Law Office

4 Berkowitz Street, Tel Aviv

Telephone 076-5385862

gavishlaw.co.il

Summary and Call to Action

Understanding your rights in this field is the first step toward exercising them properly. Each case is examined according to its circumstances, so it is important to prepare accordingly, keep orderly documentation and act on time.

If you are dealing with an issue in this field, or wish to examine your rights, you are welcome to contact the Yaniv Gavish Law Office to look into your individual circumstances. The office practices tort law and the exercise of rights vis-à-vis the National Insurance Institute, and accompanies injured people through these proceedings.

Yaniv Gavish Law Office, 4 Berkowitz Street, Tel Aviv. Telephone: 076-5385862. Website: gavishlaw.co.il.