How long does a car accident lawsuit take in Israel?

Road accidents are a routine occurrence in Israel, and drivers tend to settle the matter of compensation between them, without getting the insurance company or the authorities involved. But what happens when this issue isn’t settled by agreement between the parties? What do you do when the identity of the additional vehicle involved in the accident is unknown? In this article, a lawyer from our law firm, specializing in traffic and torts law, explains how long a car accident lawsuit takes, and the options for concluding the suit through a settlement or appeal with regards to the suit’s results.

What is the Road Accident Victims Compensation Law?

The Road Accident Victims Compensation Law 5735-1975 was created following long term difficulties for road accident victims to prove their eligibility to receive compensation, as well as following an overload in courts due to the large number of people filing suit. The purpose of this law is to grant swift compensation to a passenger, driver, or pedestrian with respect to any bodily damage caused in a road accident.

The legislature has formulated the obtainment of compensation without court interference, by combining three means:

Applying the arrangement of absolute liability, which does not condition the existence of fault on part of the offender, and is not affected by contributory fault on part of injured party (except in extreme cases where the injured party deliberately caused the accident). This arrangement is very different from classical torts law, which requires fault on part of the tortfeasor to apply eligibility for compensation. On the other hand, with respect to suits concerning property that was damaged as a result of a road accident, the law doesn’t invoke immediate eligibility, and the plaintiff is obliged to prove fault on part of the tortfeasor to obtain compensation.
Extending the obligation to purchase insurance, pursuant to the Motor Vehicle Insurance (Third Party Risks) Ordinance (New Version) 5730-1970, which guarantees that the injured party would be able to obtain compensation for their damages in any circumstance, regardless of the tortfeasor’s financial status. In addition, it guarantees that compensation will be paid without delay by the insurance company, regardless of the suit’s progress.
The establishment of “Karnit – a fund for the Compensation of Road Accident Victims,” whose role is to guarantee the payment of compensation to victims who are unable to obtain compensation from the driver’s insurance company, in cases where the driver has no insurance or has escaped the scene of the event and is impossible to recognize.

The special eligibility under the Road Accident Victims Compensation Law is granted in addition to the injured party’s eligibility under private insurance policies they had purchased or which were purchased for them (for example, by an employer). The law requires any person holding or driving a vehicle to purchase an insurance policy covering their liability in case of damages, so that people who have suffered bodily damage may have the ability to collect compensation. Violation of the insurance obligation is a legal offense leading to criminal and civil sanctions, therefore this insurance is also called “mandatory insurance.”

What is the process of compensation suits for road accident victims?

First, following the accident, the injured party would have to provide details to the insurance company, including their details, the essence of the damage caused, persons involved in the accident, and a demand for monetary compensation. In case the insurance company does not comply with this request, and its new offer is not accepted by the tortfeasor, then the injured party may commence a civil procedure in a compensation suit.

This procedure is conducted in court against the insurance company of the vehicle in which the accident occurred, or against the insurance company of the tortfeasor’s vehicle, in case of injury caused to a pedestrian. The injured party must attach the insurance policy to the suit, as well as the details of the accident and the injury caused as a result of it, medical findings, and related expenses following the accident. Sometimes, the injured party would have to attach an expert medical opinion on their behalf with regards to the accident, although usually a medical expert is appointed to provide a medical opinion on behalf of the court .

In case the vehicle is uninsured, or if the pedestrian doesn’t know the identity of the tortfeasor, the claim is sent to Karnit. It’s important to know that if the injured party is the vehicle’s owner, and they had not insured it, they would not have the right to sue. In addition, Karnit would have the right to sue them for any damage caused by them to another person.

The injured party may sue the tortfeasor up to 7 years following the date in which the accident occurred, and it’s recommended to obtain the help of a lawyer specializing in torts law, to facilitate the legal process.

How long does a car accident lawsuit take?

After the suit is filed, the next stage is that of negotiation with the insurance company. The negotiation stage may conclude within a few months; however, if it doesn’t succeed, the following stage is that of a court lawsuit. The duration of the suit may vary between different cases, and the time it takes to conduct the case depends on the circumstances of the accident, the damage caused, and the entity against which the suit is conducted. A road accident compensation suit may even take several years.

However, in certain circumstances where the injured party was significantly injured, the injured party can demand that compensation be paid in the beginning of the lawsuit process, and this amount is later offset from the future compensation payment ruled in their favor. This payment is also known as “prompt damages.” The law recognizes the financial need of the injured parties in financing their medical expenses, treatment expenses, and even legal expenses.

When is a settlement advisable, and what does it include?

As noted above, following the accident, negotiations begin with the insurance company. In cases that include mild and insignificant damage, the parties usually reach mutual agreement. However, more complicated cases, which include significant damage to those involved in the accident, or a reduction of the compensation on part of the company due to a “contributory fault” argument, usually involve a lawsuit following the negotiation stage.

In general, insurance companies tend to reach a mutual settlement between the parties as quickly as possible. Alongside the wish to avoid a legal dispute, and the additional expenses involved with it, insurance companies tend to reach a settlement regarding the scope of compensation before additional damages are discovered or temporary damages become permanent. In case the injured party is unaware of the scope of damages caused to them, or has not concluded their medical diagnosis, it’s recommended to avoid making any settlement with the insurance company, and to instead consult a lawyer.

Alternatively, in the event that the claimant’s damages are minimized in the future, it may be that reaching a settlement after the accident or in the preliminary stages of the legal process, would be beneficial to the injured party.

Can the court’s ruling be appealed?

The court may award compensation with respect to physical or psychological damage, pain and suffering, loss of earning capacity, and even compensations intended to support the injured party’s family. However, sometimes the injured party feels that they have not received the amount of compensation they deserve, and therefore they may appeal the court’s ruling to a higher court. In cases of a second appeal, this is only accepted following the court’s approval.

We recommend seeking the assistance of a lawyer specializing in torts law, in order to reach the best possible settlement with the insurance company, or to guarantee the suit’s success.

Our law firm, located in Jerusalem and Tel Aviv, specializes in torts law, with proven experience in road accident-related compensation suits. We’ll be happy to assist you.