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Car Accidents – Advance Payments on Account of Damages (Prompt Payments)

יהודה אלחרר
יהודה אלחרר

How can victims of a car accident in Israel receive an advance payment on account of the damages that will be awarded to them in the future? To ensure that victims of a car accident are able to pay the expenses for their daily needs, the law provides a solution called prompt payments. These are payments given in advance on account of future damages for car accident victims.

Car accident damage claims may often go on for many years. During this period, accident victims often find themselves without the ability to support themselves. The law offers a solution for this situation, designed to prevent victims of car accidents from being left with no recourse, such as prompt payments (as an advance payment) and more. Unfortunately, car accident victims are not always aware of this option. In this article, attorney Nirit Flaishman, an expert on tort law from our firm, will explain this matter.

Our law firm, with branches in Jerusalem and Tel Aviv, specializes in tort law and representing victims of car accidents. Our office employs lawyers with extensive experience in providing consulting services and legal representation on a variety of issues, including medical malpractice, personal injuries, personal accidents, and more. Our firm accompanies its clients and provides them with a comprehensive and optimal response throughout all stages of the tort procedure, in a manner adapted to their needs and the requirements of each procedure individually.

advance payment damages

What’s the purpose of prompt payments?

The large number of lawsuits involving car accidents, delays by insurance companies in providing payments to accident victims and other factors, lead to the fact that it may take a long time (sometimes even several years) until accident victims receive the compensation they deserve. During that entire period, they will have to deal with expenses that they cannot cover – medical expenses, loss of earnings, caregivers, and more.

Prompt payments are designed to help accident victims who have no means to bear these expenses before they receive their full damages. Our office deals with the representation of car accident victims on an ongoing basis and has helped many clients receive prompt payments in the duration of their damage claim proceedings. We explain the procedure below based on our experience.

What does the law state?

The Road Accident Victims Compensation Law establishes a special mechanism, which allows accident victims to claim financial damages for current expenses for medical needs, nursing needs and basic living needs of the victims and their families. Under the law, car accident victims must first contact the insurance company to claim prompt payment. If, within 60 days, the insurance company refrains from making the prompt payment, the court may be asked to compel the company to pay. The motion for prompt payment will be submitted to the court in which the main claim is being conducted or to the Magistrate Court. The insurance company may reply to the motion within 30 days. After the deadline for receiving its reply has passed, a hearing will be held on the issue, and the court will determine whether to order prompt payments and their amount.

Are prompt payments instead of or in addition to damages awarded in the future?

As explained above, prompt payments are an advance payment on account of damages awarded to car accident victims. Accordingly, the prompt payments will be deducted from the final compensation award. For example, if 500,000 ILS are awarded to the plaintiff at the end of the proceedings, and the prompt payments that have already been paid amount to 100,000 ILS, the damages paid at the end of the proceedings will amount to 400,000 ILS. However, it should be clarified that prompt payments are not supposed to reduce the amount of damages awarded, which is determined according to the actual injury suffered by the victim.

What else is important to know?

It is important to emphasize that if a damage claim has not yet been filed and a decision is made to grant prompt payments, the law states that the plaintiff must file a damage claim. Failure to file a damage claim will lead to the termination of prompt payments. Also, car accident victims who are entitled to an advance payment on account of damages should know that they can request to increase or decrease the amounts while conducting the proceedings. For example, if their medical expenses or nursing expenses increase, they can apply to the court and ask to increase the amount of the prompt payments accordingly. In this context, it should be noted that it is important to keep records and receipts of the current expenses, which will serve as evidence in the context of the motion for prompt payments.

Advance payment on account of damages for car accident victims – contact our tort law experts

In this article, we explained in detail the ways to receive prompt payments after a car accident, in order to avoid a situation of not being able to meet current living expenses. If you have questions or need advice and assistance on the matter, please direct them to our office, which regularly deals with damage claims of victims of road accidents. Lawyers specializing in tort law from our office, in Jerusalem and Tel Aviv, are available at the phone numbers and email address listed below and will be happy to assist in any matter.

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