Road Accident Claims: Whom to Claim From, How Compensation Is Calculated and the Deadline

No-Fault Liability: Whom to Claim From

The Compensation for Road Accident Victims Law, 5735-1975, imposes absolute liability: a person who suffers bodily injury in a road accident is entitled to compensation even when no one was at fault, and even when that person caused the accident. The compensation is paid by the insurer that issued the vehicle's compulsory insurance (bituach chova).

The Law defines a road accident as an event in which a person suffers bodily injury as a result of the use of a motor vehicle for transportation purposes. Such use includes not only driving but also getting into and out of the vehicle, so a person injured while getting off a bus may also be entitled. Each case is examined on its own facts.

Whom you claim from depends on where you were. A passenger or driver claims from the compulsory insurance of the vehicle they were in, even when the driver of the other vehicle was at fault. A pedestrian claims from the compulsory insurance of the vehicle that hit them. When the driver had no insurance, when the driver fled and is unknown, or when the insurer has gone into liquidation, the claim is filed against Karnit, the road accident victims compensation fund.

The Law covers bodily injury only. Damage to the car itself is claimed separately, from comprehensive insurance or from the driver at fault and that driver's third-party insurance, under the ordinary law of torts. The Law denies compensation in certain cases, for example to a person who caused the accident intentionally, a person who drove without a driver's license and a person who drove without compulsory insurance. That is why the circumstances of the accident are examined at the outset.

What Is Compensated and How It Is Calculated

Compensation is calculated by heads of damage: past and future loss of earnings, medical and travel expenses, help from others at home and with care, and non-pecuniary damage, meaning pain and suffering. In a fatal accident, family members who were dependent on the victim are also entitled to compensation.

The Law caps some of the amounts. Compensation for loss of earnings may not exceed three times the national average wage, and compensation for pain and suffering is calculated under a formula set in regulations, based on the medical disability percentage and the number of days in hospital, up to a ceiling.

The medical disability in the claim is generally determined by a physician the court appoints to examine the victim. When a disability has already been determined under another law, for example by a medical board of the National Insurance Institute (Bituach Leumi) in a work accident, that determination is generally binding in the claim as well. That is why medical records from the first day, from the emergency room through follow-up treatment, are the foundation of the entire claim.

An Accident on the Way to Work, National Insurance and Advance Payments

An accident on the way to or from work may also be a work accident. In that case a claim is also filed with the National Insurance Institute, for injury allowance and a disability pension, and the benefits the Institute pays because of the accident are generally deducted from the compensation under the Compensation Law. We cover the National Insurance claim on the page Work Accidents.

A victim who needs money before the claim ends, for example for treatment or living expenses, can ask the court for interim payments (tashlumim tchufim), an advance on account of the compensation.

Limitation, Legal Fees and What to Do Now

A claim for bodily injury in a road accident generally becomes time-barred seven years after the accident. When the victim is a minor, the limitation period generally begins only when he or she turns 18. Preparing a claim takes time, so do not wait until the last year.

A lawyer's fee in a claim under the Compensation Law is capped by law as a percentage of the compensation, and the ceiling depends on the stage at which the case ended. This way the victim knows in advance the maximum share of the compensation that will be paid as a fee.

After an accident, get medical treatment and keep every document, report to the police, write down the details of the drivers, the vehicles, the insurance and any witnesses, and do not sign a waiver or a settlement with the insurer before checking what you are entitled to.

Road Accident Claims throughout Israel

The firm represents clients from all over Israel: Jerusalem and the Shfela, Be'er Sheva, Ashdod and Ashkelon, Haifa and the North, the Sharon and Gush Dan. Meetings take place at our two Modiin branches, at the WE Towers branch in Tel Aviv or by video call, and documents can be sent in advance on WhatsApp. We represent clients in the courts, the Labor Courts and before planning committees throughout Israel. How we work with clients across Israel.

Frequently asked questions