Financial compensation for work accident victims
What financial compensation are work accident victims in Israel entitled to? The law entitles victims of work accidents to financial compensation and additional benefits, which can be claimed through the National Insurance Institute. The amount of work accident compensation is set according to the claimants’ determined level of disability. The compensation may vary depending on parameters such as the type and degree of disability, the age of the victims, their medical condition prior to the accident, etc. Below, an expert in labor and insurance law from our office will explain how financial compensation is calculated for victims of work accidents.
Calculation of compensation for a work accident – a sophisticated and complex mechanism
Work accidents can happen to anyone, anywhere. Injuries from work accidents vary in severity from case to case. They may be minor and temporary, but sometimes they leave scars for life, and entitle the victims to compensation that makes it possible to deal with the resulting damages and the loss of work capacity. In addition to the possibility of receiving insurance coverage as part of private workman’s compensation insurance, Israeli law provides for a sophisticated compensation mechanism, whose purpose is to compensate victims of work accidents temporarily, as well as to grant entitlement to compensation in the form of a disability allowance in certain cases. Various parameters are taken into account when determining compensation, and so it is difficult to predict in advance what exact amount of compensation will be awarded once the claim is filed. However, familiarity with these parameters may help victims of work accidents understand the full rights they deserve. This is important because the compensation for work accidents may reach extremely high amounts, when calculated cumulatively; sometimes hundreds of thousands and even millions of shekels.
Temporary compensation for a work accident (injury compensation)
Those who have suffered physical or mental harm as a result of an illness, accident or any other event, and the injury temporarily prevents them from being able to work, may be entitled to financial compensation known as “injury compensation”. This is the payment of compensation for loss of income for up to 90 calendar days. The National Insurance Institute is obliged by law to pay injury compensation from the fourth day of absence from work. To claim injury compensation, you must fill out a claim form on the National Insurance Institute website, and attach all the relevant documents regarding the circumstances of the case, such as medical certificates, affidavits, etc.
Disability allowance – what parameters may affect the amount of compensation?
Those who are left with a disability due to an injury at work may be entitled to a disability allowance. Claims for disability allowance that are examined by the medical committees at the National Insurance Institute are decided according to the circumstances of the specific case. The committees tend to take into account parameters relevant to the claim. One of these parameters is the type of disability caused as a result of the work accident and the extent of its effect on the worker’s ability to function. The more the nature of the disability limits the claimant’s ability to work, the higher the compensation will tend to be. For example, an accident that caused damage to the claimant’s legs and limits their ability to walk will lead to a higher compensation amount compared to an accident that caused damage that does not limit motor function. In the same way, the severity of the disability will affect the disability percentage awarded to the claimants. Temporary and minor damage to walking ability will usually lead to the awarding of temporary compensation, while permanent damage that requires a wheelchair for mobility will lead to the awarding of correspondingly higher compensation.
Another significant factor that will affect the compensation is the victim’s age. The compensation is calculated according to the remaining working years for the victim. Accordingly, those who were injured at a younger age will usually be granted compensation for a longer period of time, and the weighted amount of compensation will be correspondingly higher. The compensation will also be affected by the victim’s salary. The higher it was in the period of time close to the date of the accident (3 months earlier), the higher the compensation awarded. The victim’s previous medical condition must also be added to all of these. The rate of compensation for a work accident is determined based on the damages caused to the plaintiffs in the accident itself. The medical boards tend to deduct from the compensation the value of abnormal medical conditions prior to the accident. An exception to this is the option of claiming a combination of disabilities, which is only possible in certain cases.
How is compensation calculated by the National Insurance Institute?
The compensation is calculated based on two main groups of parameters. One parameter is the percentage of disability determined for victims due to loss of work capacity. Those who are determined to have a disability percentage of up to 19% will be awarded a one-time stipend for this disability. Sometimes it is possible to increase the amount of compensation later, if it can be proven that there has been a deterioration in the claimant’s condition. Those for whom the medical committee determines a disability percentage of 20% or higher will be given compensation in the form of a monthly allowance for life. The amount of the allowance depends on the percentage awarded to the claimants.
Another parameter is a calculation made based on the claimant’s average salary near the time of the accident. The eligibility rates are based on the average salary and the injury compensation to which the employees are entitled. Disability allowances for victims of work accidents are calculated according to the sum of the injury compensation due to employees in the initial period after a work accident, multiplied by 30 (according to the days of the month on average). The maximum allowance rate for persons disabled due to a work accident, as of 2022, is 34,234 NIS. It is important to know that how you prepare to submit the claim to the National Insurance Institute is of great importance in this context. Collecting all the required documents and presenting complete information about the claimant’s medical condition may have a significant impact on the ultimate amount of compensation awarded. Therefore, it is recommended to use the services of a lawyer specializing in labor and insurance law, who is experienced in representing employees in claims to exercise their rights in the National Insurance, in order to make sure that the claim is filed and handled properly.
Financial compensation for work accident victims – contact our labor and insurance law experts
Above we have described how financial compensation is calculated for work accident victims in claims for recognition of disability and loss of working capacity. If you have specific questions about ascertaining your rights and the ways to exercise them, you can contact our office and we will be glad to help. Our office, in Jerusalem and Tel Aviv, regularly represents employees in procedures to exercise their rights before insurance companies, employers, the National Insurance Institute and the labor courts. You can contact us at the phone numbers and email address listed below, and arrange a consultation with a lawyer specializing in labor and insurance law at our offices in Jerusalem and Tel Aviv.