Personal Injury in a Road Accident: How and Whom to Sue?

Unfortunately, you were involved in a car accident resulting in personal injuries and property damage. It is crucial to understand the types of damages and your rights. For your convenience, we have written a separate article summarizing key instructions regarding property damage. While property damage is usually handled by your insurance agent, personal injury claims are less straightforward. Therefore, it is essential to review this article for initial guidance. Who do you sue? Where do you sue? What happens if the accident occurred on your way to work? What if the at-fault driver lacks comprehensive or third-party liability insurance? Can you file a small claims suit for personal injuries? Unsure? This article is for you.

Where to File a Small Claims Suit for Personal Injuries from an Accident?

Personal injury claims are filed without a specified claim amount. The extent of damages will be ultimately assessed during the proceedings by medical experts and the court. Therefore, a unilateral medical assessment by the claimant at the time of filing the claim is not truly meaningful.

However, different courts can only award compensation up to their jurisdictional limits. The Small Claims Court has jurisdiction over claims up to NIS 38,900 (as of January 2023). The Magistrate’s Court has jurisdiction up to NIS 2.5 million. The District Court has no such limit. Therefore, claimants suffering from personal injuries initially consult professionals providing expert opinions that estimate the extent of their physical damage. Based on the monetary assessment in the professional opinion, the claimant will choose where to file their claim. For instance, if a medical expert estimates the damage at NIS 20,000, the claimant will likely file their claim with the Small Claims Court. This significantly reduces costs (lawyer, fees, etc.) and leads to a faster process. The risk that the maximum compensation awarded will be NIS 38,900 is unlikely to deter them. However, if the expert assesses the damage at NIS 2 million, the claim will likely be filed with the Magistrate’s Court.

Of course, if it’s a workplace accident, the claim will likely be filed with the Labor Courts. And if the claimant wants a pension and/or disability percentage, they will apply to the National Insurance Institute.

Considerations for Filing a Personal Injury Claim in Small Claims Court

• The claimant estimates their damages will not exceed the compensation ceiling of the Small Claims Court (NIS 38,900, as of January 2023);
• The claimant estimates their damages may exceed the aforementioned ceiling by a small margin, but prefers to forgo the chance of a higher award in favor of a faster and less expensive process;
• Inability/unwillingness to afford a lawyer and pay high fees and expenses;
• To benefit from the simplified procedures and evidence laws applicable in the Small Claims Court, which are more lenient towards errors.

Compensation for Personal Injuries When the At-Fault Driver Lacks Mandatory Insurance

A claim can be filed against the at-fault driver in court and/or the “Karnit” can be approached. Karnit is a public corporation established under the Road Accident Victims Compensation Law, 1975. A portion of the premium that all drivers pay as part of their mandatory insurance is allocated to Karnit so that it can handle and provide compensation in cases where it is impossible to recover from the at-fault party. This includes:

• Hit-and-run accidents;
• When the at-fault vehicle lacks mandatory insurance;
• When the vehicle was driven by an unlicensed driver;
• When the at-fault vehicle’s insurance company has entered liquidation proceedings;
• When the vehicle was used in violation of the policy terms (and therefore the insurance company does not provide coverage);
• When the at-fault vehicle is stolen.

Of course, if we have the details of the at-fault driver, both options can be pursued. In other words, you can apply to Karnit for compensation, and if Karnit rejects the request or pays less compensation than what the claimant believes is due, they can subsequently sue the at-fault driver in a personal injury claim.

What Damages Can Be Claimed for Personal Injuries?

Damages are divided into two main groups: special damages (damages from the date of the accident until the filing of the claim); and general damages (future damages including pain and suffering).

These are the main heads of damage that can be claimed:

1. Loss of earnings;
2. Reimbursement of medical expenses;
3. Reimbursement of travel expenses;
4. Reimbursement of expenses for assistance from a third party;
5. Pain and suffering (to be determined by estimation).

How Will the Amount of Compensation for Personal Injuries Be Determined?

The amount of compensation to the injured party will be determined according to: (1) the severity of the injury; (2) the disability incurred; (3) the jurisdictional limit of the court. Important Note! From any sum awarded to the injured party, the amount of compensation benefits paid/to be paid by the National Insurance Institute for the injury will be deducted.

Accident on the Way to Work – Can You File a Small Claims Suit for Personal Injuries?

According to Section 80 of the National Insurance Law [Consolidated Version], 5735-1975, a road accident is a work accident. In the case of a road accident as a work accident, a claim can be filed directly with the National Insurance Institute or, in appropriate cases, through the court. The competent court to hear such a road accident claim is the Regional Labor Court. Therefore, a claim can be filed against the National Insurance Institute (within one year) and simultaneously against the insurer/at-fault driver.

How Long Do You Have to File an Insurance Claim or a Claim Against the At-Fault Party?

If you only wish to sue the insurance company, the claimant has 3 years from the date of the qualifying event to do so. Section 31 of the Insurance Contracts Law, 5741-1981 stipulates a shorter statute of limitations than that stipulated in the Statute of Limitations Law (usually 7 years). However, some insurance companies stipulate in the policy that the statute of limitations will commence from the date of disability assessment; and from that date, the 3-year period should start to be counted. If you also want to sue the at-fault party personally, the statute of limitations in the Statute of Limitations Law applies (usually 7 years from the date of the event).