|The right to receive compensation for an injury sustained in a car accident is regulated by the Compensation Law for Victims of Road Accidents, 1975.|
The law is based on the principle of absolute liability meaning that it is enough to prove that one was involved in a car accident that caused bodily damage and it does not matter who was responsible for the accident.
By law every motor vehicle must be insured against personal injury caused by involvement in a car accident. The rule is that everyone sues the insurer of the car they were in when the accident occurred. A pedestrian would sue the insurer of the car that hit him.
When the injured party files a claim for compensation he also must file a motion to appoint neutral medical experts. This arrangement is different than regular tort cases in which the plaintiff must file an expert opinion together with his claim. Since the opinion costs several thousand shekels this is significant for plaintiffs.
The court will generally appoint its own medical expert, who will determine the degree of temporary and/or permanent disability of the injured party.
If the disability was already determined according to another law (for example, the National Insurance Law), then this determination is binding on the court and the court will generally not agree to appoint its own medical expert.
The law limits two types of damages, as explained below:
Pain and suffering is limited to a maximum of approximately 165,000 nis, plus approximately 320 nis for each day of hospitalization. Such compensation is calculated using a set formula multiplying the degree of disability by the above sum and deducting 1% of the sum for every year that the injured party is above 30. In addition compensation is given for the number of days of hospitalization multiplied by 320 nis.
Damages for loss of earnings are limited to three times the current average salary, which is approximately 8,500 nis, so the maximimum that an injured party could receive for each month of lost earnings is approximately 25,000 nis.
The National Insurance Institute (bituach leumi) is required to compensate every person injured in a work-related accident, including a car accident that occurred on the way to or from work. All amounts that are received, or that could have been received from the National Insurance Institute but were not demanded, by the injured party are deducted from the compensation paid.