The Israeli Compensation System in

Respect of Road Accidents

Ilan Kaner, Adv.

AIDA Motor Insurance Working Party Athens, May 2014

AIDAAIDA

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Israeli Motor Vehicle System - No FaultIsraeli Motor Vehicle System - No Fault

Under the Israeli Law – compensation to any injured

Mandatory Insurance – Bodily InjuryMandatory Insurance – Bodily Injury

Insurance policy - mandatory

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Limited CompensationLimited Compensation

-Loss of income – three times the average wage

- Non-monetary damage – fixed amount

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Exclusive Cause of ActionExclusive Cause of Action

No claim under general Tort Law

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Regulated Mandatory InsuranceRegulated Mandatory Insurance

Policy wording – dictated by Regulator

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Highly Regulated FieldHighly Regulated Field

(a) Full compensation

(b) Terms of insurance set by the Regulator

(c) Insurer cannot consider age, number of passengers, etc.

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The POOLThe POOL

The POOL – for “unattractive” insureds

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Motor Vehicle Reform - 2006Motor Vehicle Reform - 2006

- High premium for 2-wheel vehicles

- Arrangement for allocation compensation between heavy and light vehicles

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Profitable Results For InsurersProfitable Results For Insurers

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““Karnit” Karnit”

Fund for indemnification of injured by non-insured / stolen vehicle or hit-and-run accidents

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Issues In DisputeIssues In Dispute

- What is a motor vehicle ?Electric bicycle? Electric buggy? Motorised mechanical engineering equipment?

- What is a road accident?

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Easy To Handle By PlaintiffEasy To Handle By Plaintiff

- No medical opinion required

- No need to prove liability

- Regulated limited lawyer’s fees

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Thank youThank you

Ilan Kaner, Adv.