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

Unfortunately, you have been involved in a car accident resulting in personal injuries and property damage. It is crucial to understand the types of damages and your rights concerning them. For your convenience, we have written a separate article summarizing key information regarding property damage. While property damage is typically handled by your insurance agent, personal injury claims often require a different approach. This article provides initial guidance to help you navigate the complexities of personal injury claims following a car accident. Who do you sue? Where do you file the claim? What if the accident occurred on your way to work? What if the at-fault driver lacks comprehensive or third-party insurance? Can you file a small claims suit for personal injuries? Unsure of the answers? This article is for you.

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

Personal injury claims are filed without specifying a claim amount. The extent of damages will be determined during the proceedings by medical experts and the court. A unilateral medical assessment by the claimant at the time of filing is not determinative.

However, courts have jurisdictional limits on the amount of compensation they can award. A Small Claims Court can hear claims up to ₪38,900 (as of January 2023). A Magistrate’s Court can hear claims up to ₪2.5 million. The District Court has no monetary limit. Therefore, claimants with personal injuries initially consult with professionals who provide expert opinions estimating the extent of the bodily injury. Based on this monetary assessment, the claimant chooses where to file their claim. For example, if a medical expert estimates the damage at ₪20,000, the claimant will likely file in Small Claims Court, reducing costs (lawyer’s fees, court costs, etc.) and accelerating the process. The risk that the maximum award may be ₪38,900 will likely not deter them. If, however, the expert estimates the damages at ₪2 million, the claim will probably be filed in the Magistrate’s Court.

If the accident occurred during work, the claim would likely be filed with the Labor Courts. If the claimant seeks 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 Small Claims Court’s jurisdictional limit (₪38,900, as of January 2023);
• The claimant estimates their damages may exceed the above limit by a small margin, but prefers a quicker and less costly process;
• Inability/unwillingness to afford a lawyer and pay high fees and expenses;
• To benefit from the simpler procedures and evidence rules in 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 an application made to “Karnit”. Karnit is a public corporation established under the Road Accident Victims Compensation Law, 1975. Part of the premium paid by all drivers for mandatory insurance is allocated to Karnit to provide compensation when recovery from the at-fault party is impossible. 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 insurance company of the at-fault vehicle is in liquidation;
• When the vehicle was used contrary to the policy terms (and therefore the insurance company does not provide coverage);
• When the at-fault vehicle was stolen.

If the at-fault driver’s details are known, both options can be pursued. That is, applying to Karnit for compensation, and if Karnit rejects the claim or provides insufficient compensation, subsequently suing the at-fault driver for personal injury damages.

Damages Claimable for Personal Injuries

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

The following 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 assessed).

Determining the Amount of Compensation for Personal Injuries

The amount of compensation awarded to the injured party will depend on: (1) the severity of the injury; (2) the resulting disability; (3) the court’s jurisdictional limit. Note: Any amount awarded will be reduced by any compensation paid or to be paid by the National Insurance Institute for the injury.

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

According to Section 80 of the National Insurance Law (Consolidated Version), 1995, a road accident is a work accident. In the case of a road accident deemed a work accident, a claim can be filed directly with the National Insurance Institute or, where appropriate, through the court. The competent court to hear such a claim is the Regional Labor Court. Therefore, a claim can be filed against the National Insurance Institute (within one year) and concurrently against the insurance company/at-fault driver.

Time Limit for Filing an Insurance Claim or Claim Against the At-Fault Party

If only the insurance company is being sued, the claimant has three years from the date of the event giving rise to the claim. Section 31 of the Insurance Contracts Law, 1981, establishes a shorter limitation period than that provided in the Law of Limitation (generally 7 years). However, some insurance companies stipulate in the policy that the limitation period commences from the date of disability assessment; the three-year period is then calculated from that date. If both the at-fault party and the insurance company are being sued, the limitation period under the Law of Limitation applies (generally 7 years from the date of the event).