Road Accident Victims Compensation Law, 5735–1975

1. Definitions

In this Law—

“road accident” means an occurrence in which bodily injury is caused to a person as a result of the use of a motor vehicle for transport purposes; an occurrence resulting from the explosion or ignition of the vehicle, caused by a component of the vehicle or by another substance essential to its capacity to travel, shall also be regarded as a road accident, even if caused by a factor outside the vehicle, as shall an occurrence caused by an impact with a vehicle parked in a place where parking is prohibited, or an occurrence caused by the utilisation of the vehicle’s mechanical power, provided that, during such use, the vehicle did not change its original purpose; however, an occurrence resulting from an act done intentionally to cause injury to that person’s body or damage to that person’s property shall not be regarded as a road accident where the injury or damage was caused by the act itself and not by the effect of the act on the use of the motor vehicle;

“bodily injury” means death, illness, or physical, mental or intellectual injury or impairment, including damage to a device required for the functioning of one of the body’s organs which was attached to the injured person’s body at the time of the road accident;

“use of a motor vehicle” means travelling in a vehicle, entering it or alighting from it, parking it, pushing or towing it, roadside servicing or roadside repair of the vehicle carried out by its user or by another person otherwise than in the course of that person’s work, including the rolling or overturning of the vehicle or the detachment or falling of part of the vehicle or its load while travelling, and also such detachment or falling from a stationary or parked vehicle, otherwise than in the course of a person’s work on the vehicle, but excluding the loading or unloading of cargo while the vehicle is stationary;

“injured person” means a person who has sustained bodily injury in a road accident, except where it was caused by a hostile act within the meaning of the Victims of Hostile Action (Pensions) Law, 5730–1970;

“the Insurance Ordinance” means the Motor Vehicle Insurance (Third-Party Risks) Ordinance [New Version], 5730–1970;

“insurer” has the meaning assigned to it in the Insurance Ordinance, including a person exempt from the obligation to insure under sections 4 to 6 of the Insurance Ordinance;

“motor vehicle” or “vehicle” means a vehicle moving by mechanical power on the ground whose principal purpose is to serve for land transport, including a train, tractor, mobile machine capable of moving by mechanical power on a road, and a vehicle towed by or supported by a motor vehicle, but excluding a wheelchair, invalid carriage and escalator;

“Israeli” means a person registered in the Population Registry maintained under the Population Registry Law, 5725–1965, and also a person holding a temporary-residence visa under the Entry into Israel Law, 5712–1952;

“the Area”, “the Agreement”, “the Palestinian Responsibility Areas”, “insurer from the Area” and “insurer from the Palestinian Civil Responsibility Areas” have the meanings assigned to them in the Insurance Ordinance;

“the Areas” has the meaning assigned to it in the Implementation of the Treaty of Peace between the State of Israel and the Hashemite Kingdom of Jordan Law, 5755–1995;

“departing passenger”, “arriving passenger”, “employee” and “the airport”—(expired).

2. Liability of a person driving a vehicle

(a) A person using a motor vehicle (hereinafter—the driver) shall compensate the injured person for bodily injury sustained in a road accident in which the vehicle is involved.

(a1) The driver of an Israeli vehicle shall compensate an injured person who is an Israeli or a foreign tourist for bodily injury sustained in a road accident in which the vehicle is involved, even if the accident occurred in the Area, in the Palestinian Civil Responsibility Areas or in the Areas, and the accident shall be regarded as if it occurred in Israel;

For the purposes of this section—

“foreign tourist” has the meaning assigned to it in the Tourism Services Law, 5736–1976, excluding a resident of the Area or a resident of the Palestinian Civil Responsibility Areas, provided that the person was injured during a tour within the meaning of that Law;

“Israeli vehicle” means a vehicle registered in Israel or required to be registered in Israel under any law, or a vehicle not required to be registered whose owner is an Israeli.

(a2) (Expired.)

(b) Where the vehicle was used with the permission of its owner or possessor, liability shall also apply to the person who permitted the use.

(b1) (1) Notwithstanding subsections (a), (a1) and (b), the obligation of the driver, and of the person who permitted use of the vehicle as stated in subsection (b), to compensate the injured person shall not apply in respect of an injured person who is a resident as defined in the National Health Insurance Law, 5754–1994 (hereinafter—the National Health Insurance Law), for health services included in the Second Schedule or in an order under section 8(g) of that Law, provided that the injured person is entitled to them under that Law.

(2) Paragraph (1) shall not derogate from the obligation to compensate an injured person who is a resident during a waiting period under section 58 of the National Health Insurance Law, a soldier to whom the National Health Insurance Law does not apply under section 55 of that Law, or a person entitled, by reason of the injury, to a benefit under Chapter V of the National Insurance Law [Consolidated Version], 5755–1995.

(c) Liability is absolute and complete, and it is immaterial whether or not there was fault on the part of the driver, or fault or contributory fault on the part of others.

3. Accident involving several vehicles

(a) In a road accident involving several vehicles, each driver shall be liable for the bodily injuries of the persons travelling in that driver’s vehicle.

(b) Where a person outside the vehicles is injured in a road accident involving several vehicles, the drivers shall be jointly and severally liable to that person; as between themselves, they shall bear the burden of liability in equal shares. For the purposes of apportioning liability between the drivers under this subsection, a vehicle shall be regarded as involved in a road accident if, at the time of the accident, there was contact between it and another vehicle or between it and the injured person.

(c) Where a road accident involves one or more motorcycles and one or more other vehicles that are not motorcycles, the insurers of the other vehicle shall pay the insurers of the motorcycle 75% of the compensation for bodily injury which the insurers of the motorcycle are obliged to pay as a result of the accident, excluding liability under subsection (b); the insurers of the other vehicle shall be jointly and severally liable to the insurers of the motorcycle and, as between themselves, shall bear the burden of liability in equal shares. For the purposes of apportioning liability between the drivers under this subsection, the concluding provisions of subsection (b) shall apply. In this subsection—

“motorcycle” means a motor vehicle with two wheels mounted one behind the other, whether or not a sidecar is attached, including a scooter and a motor tricycle;

“motor tricycle” means a motor vehicle moving on three wheels which is classified in its licence as a motor tricycle or a three-wheeled scooter, provided that its unladen weight does not exceed 400 kilograms.

(d) The Minister of Finance may, by order, with the approval of the Knesset Economic Affairs Committee, change the ratio for apportioning liability stated at the beginning of subsection (c), provided that two years have elapsed from the commencement date of that subsection.

4. Remedy for bodily injury

(a) The provisions of sections 19 to 22, 76 to 83, 86, 88 and 89 of the Civil Wrongs Ordinance [New Version] (hereinafter—the Civil Wrongs Ordinance) shall apply to an injured person’s right to compensation for bodily injury; however—

(1) In calculating compensation for loss of earnings and loss of earning capacity, income exceeding three times the average wage in the economy (hereinafter—the maximum income) shall not be taken into account; where the rate of the injured person’s loss of earnings and loss of earning capacity is less than one hundred per cent, the maximum income to be taken into account in calculating compensation shall also be reduced by the proportion by which it falls below one hundred per cent;

For the purposes of this paragraph, “the average wage in the economy” means the average wage in the economy according to the data of the Central Bureau of Statistics, or the average wage within the meaning of the National Insurance Law [Consolidated Version], 5728–1968, as they stand immediately before compensation is determined, whichever is higher;

(2) Where the said compensation is exempt from income tax, the injured person’s losses for the purposes of that compensation shall be calculated according to the person’s income after deduction of the income tax applicable to it at the time the compensation is determined, provided that the reduction for deduction of tax shall not exceed 25 per cent of the income according to which that compensation is calculated;

(3) Compensation for damage other than pecuniary damage shall not exceed one hundred thousand liras; the Minister of Justice, in consultation with the Minister of Finance and with the approval of the Knesset Constitution, Law and Justice Committee, may increase that amount.

(b) The maximum amount under subsection (a)(3) shall be linked to the Consumer Price Index from the commencement date of this Law or from the date on which the amount is increased, as the case may be; the Minister of Justice may, with the approval of the Knesset Constitution, Law and Justice Committee, prescribe by regulations criteria for calculating the compensation referred to in that paragraph.

(c) The court may give judgment by way of compromise concerning an injured person’s right to compensation under this Law if the litigants have agreed to confer such power on the court; the judgment shall be appealable in the same manner as any other judgment.

5. Interim payment

(a) In this Chapter—

“dependants” means persons entitled to compensation under section 78 of the Civil Wrongs Ordinance;

“demand” means as prescribed by regulations.

(b) A person liable for compensation under this Law shall pay, as part of it, to the injured person or to any of that person’s dependants, within 60 days of receiving a written demand—

(1) Expenses incurred by the injured person for medical treatment, including expenses of hospitalisation;

(2) Monthly payments sufficient, until the final decision concerning compensation, to meet the injured person’s medical and nursing needs and the subsistence needs of the injured person and the members of that person’s family supported by that person, or the subsistence needs of that person’s dependants, as the case may be; payments for subsistence needs shall be determined taking into account the injured person’s income immediately before the road accident, provided that, if that income exceeded the maximum income, only the maximum income shall be taken into account.

(c) This section shall also apply to an insurer that insured liability under this Law, including insurance as referred to in section 3(a)(2) and section 3(d) of the Insurance Ordinance.

(d) A payment under paragraph (1) or (2) of subsection (b) shall hereinafter be called an “interim payment”.

(e) (1) The payment obligation under subsection (b)(1) shall not apply in respect of an injured person who is a resident as defined in the National Health Insurance Law, concerning expenses for health services included in the Second Schedule or in an order under section 8(g) of the National Health Insurance Law, provided that the injured person is entitled to them under that Law.

(2) Paragraph (1) shall not derogate from the said payment obligation in respect of an injured person who is a resident during a waiting period under section 58 of the National Health Insurance Law, a soldier to whom the National Health Insurance Law does not apply under section 55 of that Law, or a person entitled, by reason of the injury, to a benefit under Chapter V of the National Insurance Law [Consolidated Version], 5755–1995.

5A. Application to the court for an interim payment

(a) Where 60 days have elapsed from the day a demand for payment under section 5 was submitted to the person liable, and the person making the demand has not received payment, that person may apply to the court for an interim payment, even separately from the claim for the remainder of the compensation in respect of the same road accident (hereinafter—the principal action).

(b) Notwithstanding the Courts Law [Consolidated Version], 5744–1984, an application for an interim payment shall be submitted to the Magistrates’ Court having local jurisdiction over the matter; however, if the principal action has already been filed in a particular Magistrates’ Court or in a District Court, the application for an interim payment shall also be submitted to that court.

5B. Decision of the court

(a) If the court considers that the applicant is prima facie entitled to compensation under this Law, it may order that an interim payment be made to the applicant; in such a decision, the court shall fix the final date for filing the principal action (hereinafter—the final date), but that determination shall not affect the provisions of section 5 of the Prescription Law, 5718–1958.

(b) If the applicant has not filed the principal action by the final date, the interim payment shall cease from that date; if the applicant has filed the principal action and subsequently discontinued it, the interim payment shall cease from the date of discontinuance.

5C. A decision on the application does not constitute res judicata

The court’s decision on an application for an interim payment shall not constitute res judicata in relation to the principal action.

5D. Interest on arrears

A person liable who has not made an interim payment following a demand by the due date shall pay, on the delayed amount, additional linkage differentials and index-linked interest at a rate of 12% per annum, calculated from that date until the date of actual payment, unless the court finds circumstances justifying a lower interest rate.

In this section—

“due date” means—

(1) For the purposes of section 5(b)(1)—60 days after receipt of the demand;

(2) For the purposes of section 5(b)(2)—the day fixed by the court as the date of the monthly payment;

“linkage differentials” has the meaning assigned to it in the Adjudication of Interest and Linkage Law, 5721–1961.

5E. Restrictions concerning an application

(a) Where the court has given a decision on an application for an interim payment, it shall not entertain a further application for an interim payment or an application to vary the previous decision, unless six months have elapsed from the day on which the previous decision was given and the circumstances have changed to an extent justifying a new decision; an application for a further decision or to vary a previous decision which must be submitted to a Magistrates’ Court shall be submitted to the same court in which the previous application was submitted.

(b) The court shall not award an interim payment for a period exceeding two years from the date of the road accident in respect of which the application for an interim payment was submitted.

(c) The court may, for reasons to be recorded, vary the periods prescribed in subsections (a) and (b).

5F. Regulations

The Minister of Justice may prescribe by regulations—

(1) Special procedure for an application for an interim payment;

(2) Definitions of “subsistence needs” and “nursing needs” for the purposes of section 5(b)(2).

5G. Right of recourse in respect of an interim payment

(a) In the circumstances stated in section 5B(b), and also where the principal action is dismissed after the defendant has already made an interim payment to the plaintiff, the defendant shall be entitled to reimbursement of the payment by one of the following:

(1) The plaintiff;

(2) A person liable for the damage under any law;

(3) The Fund within the meaning of Chapter III (hereinafter—the Fund);

The same shall apply to an amount paid by the defendant to the plaintiff as an interim payment which exceeds the amount awarded to the plaintiff in the principal action.

(b) Where the Fund has made an interim payment to the plaintiff as stated in subsection (a), or has reimbursed such a payment to the defendant, it shall have a right of recourse against the plaintiff or against a person liable for the damage under any law, and their liability to it under this Law shall be joint and several; for the purposes of the limitation period in actions under this subsection, the day on which such payment was made or reimbursed shall be regarded as the day on which the cause of action arose.

(c) Where the Fund has reimbursed a payment to the defendant under subsection (a), the defendant shall provide it with any assistance it requests and take every reasonable action to assist it in exercising its right under subsection (b), and shall not take any action liable to prejudice that right or prevent its exercise.

(d) Money to be repaid under subsections (a) and (b) shall be repaid with the addition of shekel interest as defined in the Adjudication of Interest and Linkage Law, 5721–1961, and the provisions of that Law concerning such interest shall apply, with the necessary modifications.

6. Periodic payments

The Minister of Justice may, with the approval of the Knesset Constitution, Law and Justice Committee, prescribe by regulations—

(1) The court’s power to order that compensation for loss of earning capacity and continuing expenses, in whole or in part, be paid in periodic payments linked to the Consumer Price Index;

(2) The cases in which the injured person may request an increase in the payments awarded;

(3) The rights of the dependants of an injured person who dies after periodic payments have been awarded to that person.

6A. Medical expert

(a) The Minister of Justice may prescribe by regulations, with the approval of the Knesset Constitution, Law and Justice Committee, provisions concerning the appointment of an expert to give an opinion on an injured person’s medical disability, or on any other medical matter, including the means of rehabilitating the injured person, and concerning the expert’s powers and duties.

(b) Where an expert has been appointed as stated in subsection (a), the following provisions shall apply:

(1) The litigants may summon the expert to court for examination, but may not adduce additional expert evidence on the matter in question except with the court’s permission for special reasons to be recorded;

(2) Each party may address written questions to the expert to clarify the opinion given;

(3) The court shall determine the expert’s remuneration, which shall be paid by the litigants or by one of them, as the court directs.

6B. Determination of the degree of disability under another law

Where a degree of disability has been determined under any law for the injured person by reason of the injury sustained in the same road accident, before the hearing of evidence in the action under this Law, that determination shall also be binding for the purposes of the action under this Law; however, the court may permit a litigant in an action under this Law to adduce evidence to contradict that determination if it is satisfied that justice requires it for special reasons to be recorded.

7. Restriction of injured persons’ entitlement

The following injured persons are not entitled to compensation under this Law:

(1) A person who intentionally caused the accident;

(2) A person who drove the vehicle in breach of the Penal Law Amendment (Unauthorised Use of a Vehicle) Law, 5724–1964, and also a person who was in the vehicle knowing that it was being driven in that manner;

(3) A person who drove the vehicle without a licence to drive it, except for a licence which expired because of non-payment of a fee or because of a restriction imposed under Chapter VI1 of the Execution Law, 5727–1967;

(4) A person who used the vehicle, or was assisted by it, in committing a felony;

(5) A person who drove the vehicle without insurance under the Insurance Ordinance, or whose insurance did not cover that person’s use of the vehicle;

(6) The owner or possessor of the vehicle who permitted another person to drive it without insurance under the Insurance Ordinance, or whose insurance did not cover the liability in question, and who was injured in a road accident occurring during that driving, whether inside or outside the vehicle.

7A. Entitlement of a driver with permission to claim compensation

Notwithstanding section 7(5), a person injured while driving a vehicle with the permission of its owner or possessor, without insurance under the Insurance Ordinance or where the insurance does not cover that person’s use of the vehicle, who did not know of this and, in the circumstances, could not reasonably have been expected to know, shall be entitled to claim compensation from the Fund in the same manner as an injured person entitled under section 12(b).

7B. Dependants’ entitlement to claim compensation

The dependants of an injured person shall be entitled to claim compensation under this Law even if the injured person was not personally entitled to it under section 7; and if they were dependants of a person injured while driving without insurance under the Insurance Ordinance, or where the insurance does not cover the liability in question, they shall be entitled to claim such compensation from the Fund.

8. Exclusivity of the cause of action

(a) A person to whom a road accident gives a cause of action under this Law, including a claim under insurance as referred to in section 3(a)(2) and section 3(d) of the Insurance Ordinance, shall have no cause of action under the Civil Wrongs Ordinance in respect of bodily injury, unless injured in an accident intentionally caused by another person.

(b) A person to whom, but for section 22(b), a road accident would have given a cause of action as stated in subsection (a) shall, for the purposes of this section, be treated in the same manner as a person having a cause of action under this Law.

(c) Subsection (a) shall not derogate from a claim under the Civil Wrongs Ordinance by a person who has no cause of action under this Law.

9. Right of recourse

(a) A person who has paid compensation due under this Law shall have no right of recourse against another person liable for compensation under this Law, except a right of recourse against one of the following:

(1) A person not entitled to compensation as stated in section 7;

(2) A person who has no insurance under the Insurance Ordinance or whose insurance does not cover the liability in question, except a person who had annual insurance which expired within 30 days before the accident;

(3) The owner or possessor of the vehicle as referred to in section 7A.

(b) The liability of the person against whom recourse is sought under subsection (a) shall be governed by the Civil Wrongs Ordinance.

(c) This section shall not affect the right of recourse, as between themselves, of persons involved in an accident under section 3(b).

10. Establishment of the Fund

A Fund for Compensation of Road Accident Victims is hereby established.

11. The Fund—a body corporate subject to audit

The Fund shall be a body corporate with capacity to acquire rights, assume obligations and perform legal acts; it shall be a body subject to audit within the meaning of section 9(2) of the State Comptroller Law, 5718–1958 [Consolidated Version].

12. Function of the Fund

(a) The function of the Fund is to compensate an injured person entitled to compensation under this Law who is unable to claim compensation from an insurer for any of the following reasons:

(1) The driver liable for compensation is unknown;

(2) The driver has no insurance under the Insurance Ordinance or the insurance held does not cover the liability in question; this provision shall not apply to an injured person who is not an Israeli and who drove a vehicle covered by an international motor insurance card under the Insurance Ordinance;

(2A) An authorised administrator has been appointed for the insurer under section 68(a)(3) of the Supervision of Financial Services (Insurance) Law, 5741–1981 (hereinafter—an authorised administrator), by direction of the Commissioner of Capital Market, Insurance and Savings within the meaning of that Law (hereinafter—the Commissioner), because the insurer is unable to fulfil its obligations, and the Minister of Finance, on the Commissioner’s recommendation, has approved that it is appropriate for the Fund to act under this section;

(3) The insurer is in liquidation.

(b) In the cases listed in subsection (a), the injured person is entitled to receive compensation from the Fund in the same manner as that person would have been entitled to receive it from an insurer, and the Fund shall also pay the hospital the expenses of treating the injured person in the same manner as an insurer is obliged to pay them under section 28 of the Insurance Ordinance.

(c) The Fund may assist in financing the activities of a fund whose function is to compensate, in cases as stated in subsection (a), an injured person whose injury occurred in the Area; an agreement concerning such assistance requires the approval of the Minister of Finance in consultation with the Minister of Justice and the Minister of Transport.

(d) Where a road accident occurs in the Area, the Palestinian Responsibility Areas or the Areas, the Fund shall compensate an injured person who is not an Israeli, who is entitled to compensation and who is unable to claim compensation from an insurer for the reasons listed in paragraphs (2A) and (3) of subsection (a); compensation shall be in accordance with the law applicable at the place of the accident, and the Fund shall have the rights stated in sections 12A and 12B, as the case may be.

(d1) (1) Where an injured person who is an Israeli has submitted to a court in Israel an action or an application for an interim payment (hereinafter—the action) against an insurer from the Palestinian Civil Responsibility Areas, against the Palestinian Fund within the meaning of the Agreement, or against the Palestinian Council (hereinafter—the defendant), in respect of a road accident occurring in Israel, the Area or the Palestinian Civil Responsibility Areas, and the defendant has not filed a statement of defence after the statement of claim was duly served, or has ceased to defend the action, the court shall order service of the statement of claim on the Fund, and the Fund shall notify the Palestinian Council or the person it has authorised for this purpose. If the defendant has not filed a statement of defence or given notice of resumption of the defence, as the case may be, within thirty days from the day on which such notice was given, the Fund shall conduct the defence of the action and compensate the injured person in accordance with the judgment given in it; compensation shall be in accordance with the law applicable at the place of the accident and at the level applicable there.

(2) The State shall indemnify the Fund for expenses and payments it has made in respect of the action, and may set them off against the transferred amounts within the meaning of section 12 of the Implementation of the Agreement on the Gaza Strip and the Jericho Area (Economic Arrangements and Miscellaneous Provisions) (Legislative Amendments) Law, 5755–1994; they shall be regarded for every purpose, including the Council’s guarantee under the Agreement, as a payment in respect of a judgment against the defendant which is no longer subject to appeal.

(e) The Fund shall pay an injured person who is an Israeli, who was injured in a road accident occurring in the Area, the Palestinian Responsibility Areas or the Areas, and in respect of which liability is not covered by a policy issued by an insurer, supplementary compensation equal to the difference between the compensation to which that person would have been entitled had the accident occurred in Israel and the compensation that person is entitled to receive under the law at the place of the accident; the Fund may pay a hospital the expenses of treating such an injured person in the same manner as an insurer is obliged to pay them under section 28 of the Insurance Ordinance.

(f) The Fund may represent an injured person who is an Israeli, pursuant to a power of attorney given to it, in negotiations with an insurer from the Area or from the Gaza and Jericho territories, or with a fund in the Area or in the Gaza and Jericho territories, or in legal proceedings against them; it may also join such legal proceedings if it has an interest in their outcome.

(g) The Minister of Finance may prescribe rules concerning the performance of the Fund’s functions under the Agreement and the provisions of subsections (d) to (f).

12A. The Fund as creditor

(a) Where the Fund incurs liability as stated in section 12(a)(2A), it shall be regarded as a creditor of the insurer, or of the liquidator if a liquidator has been appointed for the insurer, in respect of the amount of the liability.

(b) Where the Fund incurs liability as stated in section 12(a)(3), it shall, vis-à-vis the liquidator, be regarded as a creditor of the insurer in respect of the amount of the liability.

12B. Rights of the Fund in liquidation

(a) Where an insurer for which an authorised administrator has been appointed, or which is in liquidation, was reinsured against liabilities which it may incur towards a third party, and the Fund is liable in respect of the occurrence as stated in section 12(a)(2A) or (3), the insurer’s rights against the reinsurer in respect of that occurrence shall pass to the Fund, notwithstanding any other law, and the Fund may sue the reinsurer pursuant to those rights.

(b) A defence which the reinsurer may raise against the insurer shall also be available against the Fund.

(c) A reinsurance contract or an act of the insurer cannot derogate from rights conferred on the Fund under this Law.

12C. Assets and liabilities of Avner

Without derogating from the Fund’s functions under section 12, the Fund shall receive any surplus of assets or bear the balance of liabilities of any kind of Avner as defined in the Motor Vehicle Insurance (Insurance under Controlled Competition Conditions, Transitional Arrangements and Provisions concerning Avner) Law, 5757–1997 (hereinafter—the Competition Conditions Law), and in accordance with that Law; the Fund shall act as stated in this section on the date fixed by the Minister of Finance for transferring the assets or liabilities under that Law.

12D. Cost of providing medical services to road accident victims

(a) In this section and in section 12E, “cost of providing the services” means the cost of providing medical services to road accident victims which are provided by the health funds.

(b) The Minister of Finance shall publish the cost of providing the services, by notice in Reshumot, by 13 Tishri 5770 (1 October 2009).

(c) The cost of providing the services shall be updated annually in the same manner as the cost of the basket of health services is updated under section 9(b) of the National Health Insurance Law; the Minister of Finance shall publish the cost of providing the services by notice in Reshumot each year, close to the date of the update.

12E. Transfer of amounts from insurers to the Fund and provisions concerning transfer of information

(a) To finance the cost of providing the services, an insurer shall transfer to the Fund, by the tenth day of every month, a proportion to be prescribed for it by the Minister of Finance by order, of the insurance premiums collected by that insurer in the preceding month for all policies issued by it under the Insurance Ordinance; in this subsection, “insurance premiums” means the total payments collected from an insured in the motor vehicle insurance branch, excluding the supplement for financing the Fund under section 15.

(b) By the end of March of each year, an insurer shall furnish the Minister of Finance and the Fund with an accountant’s certificate confirming transfer of all amounts under subsection (a) for the preceding year.

(c) The Fund may require any insurer to make available to it and for its examination, at a time it prescribes, any information it considers necessary to examine the amounts that the insurer was required to transfer to the Fund under subsection (a); and if the Minister of Finance directs the Fund to transmit for the Minister’s inspection all or part of the information made available to it under this subsection, the Fund shall transmit that information in accordance with the conditions prescribed in that direction. For the purposes of this section, “information” excludes personal information as defined in the Protection of Privacy Law, 5741–1981.

(d) The Minister of Finance may prescribe provisions concerning the information that each insurer must transmit to a body specified in those provisions, and concerning the format and times for transmitting the information; this subsection shall not derogate from powers conferred by any law, including the Supervision of Financial Services (Insurance) Law, 5741–1981.

(e) The Minister of Finance may prescribe provisions concerning the implementation of this section.

12F. Transfer of amounts to the National Insurance Institute and to the health funds

(a) The Fund shall transfer the amounts received under section 12E to the National Insurance Institute immediately upon receipt.

(b) The National Insurance Institute shall transfer the amounts received under subsection (a) to the health funds on the first transfer date following the date on which it received the amounts under that subsection, in accordance with the allocation rules prescribed under section 17 of the National Health Insurance Law; in this subsection, “transfer date” means one of the dates on which the National Insurance Institute transfers to the health funds the money it has received from the sources of financing for health services provided under that Law.

(c) The Minister of Finance may prescribe provisions concerning the implementation of this section; provisions concerning subsection (b) shall be prescribed with the consent of the Minister of Welfare and Social Services.

13. Management of the Fund

(a) The Fund shall be managed by a board of seven members appointed by the Minister of Finance for a term of three years, a majority of them Government representatives and a minority public representatives, including persons engaged in insurance; the Minister of Finance shall appoint one of the Government representatives as chair of the board.

(b) The first board shall be appointed not later than six months after this Law is passed by the Knesset.

(c) The existence of the Fund, its powers and the validity of its decisions shall not be affected by a vacancy in the membership of the board or by a defect in a member’s appointment or continued tenure.

13A. Remuneration and reimbursement of expenses

(a) A member of the board who is not a State employee, an employee of a budgeted body, an employee of a supported body, or an employee of the body represented by that member on the board, is entitled to receive remuneration from the Fund for attending meetings of the board, under subsection (c), provided that the member is not entitled to receive payment for attendance from another source.

(b) A member of the board who is not entitled to remuneration under subsection (a) is entitled to receive from the Fund reimbursement of expenses incurred for attending meetings of the board, under subsection (c), provided that the member is not entitled to reimbursement of expenses from another source.

(c) The Minister of Finance, with the consent of the Minister of Justice, shall prescribe rules and conditions under which remuneration and reimbursement of expenses shall be paid to a member of the board under this section, and their rates.

(d) In this section, “State employee”, “employee of a budgeted body” and “employee of a supported body” have the meanings assigned to them in section 32 of the Budget Foundations Law, 5745–1985.

14. Rules of the Fund

(a) Within six months of its appointment, the board shall make the rules of the Fund, which shall include, among other things, provisions concerning the Fund’s activities, the procedure for submitting claims to the Fund and handling them, and the manner of making changes to the rules.

(b) The rules and any change or amendment to them require the approval of the Minister of Justice and the Knesset Constitution, Law and Justice Committee, and shall be published in Reshumot.

15. Financing

(a) To finance the activities of the Fund and ensure its stability, the Minister of Finance shall prescribe by order, after consultation with the Minister of Justice and the Minister of Transport—

(1) A percentage of the insurance premiums, or an amount in new shekels out of the insurance premiums, to be transferred directly or through each insurer to the Fund’s account;

(2) A percentage or an amount in new shekels out of the insurance premiums which bodies exempt from the insurance obligation under sections 4 to 6 of the Insurance Ordinance must transfer to the Fund.

(b) The Minister of Finance may prescribe, in an order under subsection (a), conditions, dates and provisions concerning the transfer of contributions towards financing the Fund.

(c) The Fund shall receive from the Palestinian Fund, within the meaning of the Agreement, amounts as stated in the Agreement.

(d) (1) Where the Authority as defined in the Insurance Ordinance (in this section—the Authority) finds that the Fund’s account contains an amount exceeding what is required to finance its activities and ensure its stability as stated in subsection (a) (in this section—the surplus amount), it may direct the Fund to transfer an amount in new shekels to insured persons in the motor vehicle insurance branch, directly or by another means prescribed by the Authority, including by reducing the rate of insurance premiums, all with the consent of the Minister of Justice.

(2) Where the Authority finds that the surplus amount exceeds 350 million new shekels, it shall, with the consent of the Minister of Justice, direct the Fund to transfer the surplus amount or part of it to insured persons, unless the Knesset Constitution, Law and Justice Committee has approved otherwise, provided that such approval is given by 1 October of the year preceding the year in which no such transfer is expected.

(e) On 1 May of each year, the Authority shall report to the Knesset Constitution, Law and Justice Committee on the following:

(1) The amount held in the Fund’s account on 31 December of the year preceding the report, including the amount retained to finance its activities and ensure its stability as stated in subsection (a), and the surplus amount;

(2) The amount transferred by the Fund to insured persons under subsection (d) during the year preceding the report date and the manner in which it was transferred;

(3) The amount the Fund is expected to transfer to insured persons under subsection (d) during the reporting year and the manner in which it is expected to transfer it.

15A. Taxes

For the purpose of payment of taxes, the Fund shall be treated in the same manner as the State.

15A1. Provision of information by the Fund

(a) The Fund shall provide information received under section 15 concerning the name of a vehicle’s insurer and its policy number, according to the vehicle’s registration number, to an injured person or to a body to be prescribed, upon a request stating that the information is required to exercise rights in connection with a road accident; in addition to that information, the Fund shall provide the Israel Police with registration numbers and insurance periods of vehicles for investigating road accidents and enforcing the provisions of law relating thereto, and for enforcing the Insurance Ordinance.

(b) The Minister of Finance, in consultation with the Minister of Justice and with the approval of the Knesset Constitution, Law and Justice Committee, shall prescribe the bodies entitled to receive information under subsection (a), the manner, time and conditions for the Fund to provide information to injured persons, to such bodies and to the Israel Police, and the payment the Fund may charge for providing it; the Minister of Finance may prescribe different provisions for different applicants for information.

15B. Restriction on application to a competitive vehicle

The provisions of this Law shall not apply to the use of a competitive vehicle for which a competitive-vehicle licence has been issued, except for the use of such a vehicle during sport driving on a liaison section or during driving which is not sport driving and which has been permitted under section 12(d) of the Sport Driving Law, 5766–2005; for this purpose, “competitive vehicle”, “sport driving”, “competitive-vehicle licence” and “liaison section” have the meanings assigned to them in the Sport Driving Law, 5766–2005.

16. Legal fees

(a) The National Council of the Israel Bar Association shall, with the approval of the Minister of Justice, prescribe a maximum tariff for a lawyer’s fees for handling claims under this Law, provided that a fee determined according to the results of the handling shall not exceed 8% of the amount agreed to be paid to the injured person or, where legal proceedings have taken place, 13% of the amount awarded; a person who has paid a fee exceeding the maximum tariff is entitled to reimbursement of the excess.

(b) The power conferred on a district committee of the Israel Bar Association by the concluding part of section 82 of the Bar Association Law, 5721–1961, shall not be available to it in respect of a tariff prescribed under this section.

17. Repealed

(Repealed.)

17A. Arrangements for apportioning the burden of compensation

The Minister of Finance may, after hearing the representative organisation of insurance companies and with the approval of the committee as defined in section 10A of the Competition Conditions Law, prescribe arrangements for apportioning the burden of compensation among insurers, having regard to the different types of vehicles.

17B. Repealed

(Repealed.)

18. Amendment of the Insurance Ordinance

In the Insurance Ordinance—

(1) In the name of the Ordinance, “(Third-Party Risks)” shall be deleted;

(2) In section 1, the definition of “public road” is repealed, and the following shall replace the definition of “motor vehicle”:

“‘Motor vehicle’ means a vehicle propelled by mechanical power, including a motorcycle with a sidecar, a motor tricycle, bicycles and tricycles with an auxiliary engine, and including a vehicle towed by or supported by a motor vehicle;”

(3) In section 2—

(1) In the marginal heading, the words “against third-party risks” shall be deleted;

(2) In subsection (a), the words “on a public road” and “against third-party risks” shall be deleted;

(4) The following shall replace section 3:

“Requirements concerning a policy

3. (a) A policy complying with the requirements of this Ordinance is a policy issued by an insurer authorised at the time of its issue, and it insures—

(1) The owner of the vehicle and the person driving it—against any liability which they may incur under the Road Accident Victims Compensation Law, 5735–1975 (hereinafter—the Law), and against any other liability which they may incur by reason of the death of or bodily injury to a person caused by or arising from the use of a motor vehicle;

(2) The owner of the vehicle who drives it and any person driving it with the owner’s permission—against bodily injury sustained by them in road accidents within the meaning of the Law.

(b) A person insured under the insurance referred to in subsection (a)(2) shall be entitled to compensation in the same manner as another injured person would be entitled to receive it under the Law.”;

(5) After section 6, the following shall be inserted:

“Obligation to compensate

6A. A person exempt from the obligation to insure under sections 4 to 6 shall provide any compensation which an insurer would have been obliged to provide had a policy under section 3(a) existed.”;

(6) At the end of section 12, the following shall be inserted: “and also to compensate the insured person driving the vehicle, or a person driving it with that person’s permission, for bodily injury sustained by them in a road accident within the meaning of the Law.”;

(7) In section 14, subsection (b) is repealed;

(8) In section 16, the concluding part beginning with the words “and any amount paid by an insurer” shall be deleted;

(9) At the end of section 19, the following shall be inserted: “‘insurer’, for the purposes of this section, includes the Fund for Compensation of Road Accident Victims under the Road Accident Victims Compensation Law, 5735–1975”;

(10) Section 22 is repealed;

(11) In sections 39 and 40, the words “on a public road” shall be deleted.

19. Amendment of the National Insurance Law

In the National Insurance Law [Consolidated Version], 5728–1968, in section 150(a), after “under the Civil Wrongs Ordinance [New Version]”, the following shall be inserted: “or under the Road Accident Victims Compensation Law, 5735–1975”.

20. Amendment of the State Service (Pensions) Law

In the State Service (Pensions) Law [Consolidated Version], 5730–1970, in section 60(a), after “(hereinafter—the Civil Wrongs Ordinance)”, the following shall be inserted: “or under the Road Accident Victims Compensation Law, 5735–1975”.

21. Amendment of the Defence Army of Israel Permanent Service (Pensions) Law

In the Defence Army of Israel Permanent Service (Pensions) Law, 5714–1954, in section 49(a), after “under the Civil Wrongs Ordinance, 1944”, the following shall be inserted: “or under the Road Accident Victims Compensation Law, 5735–1975”.

22. Liability of the State and its agents

(a) Subject to subsection (b), the State shall be treated in the same manner as any person concerning liability under this Law.

(b) In circumstances in which the State is not liable in tort under any of sections 5 to 7 of the Civil Wrongs (Liability of the State) Law, 5712–1952, it shall also be exempt from liability under this Law or under the Insurance Ordinance; the same shall apply to a person exempt from liability in tort under section 7B of that Law.

(c) This section shall apply even to an act or omission occurring before its commencement date, but shall not affect a final judgment given before that date.

23. Commencement and transitional provision

(a) This Law shall commence on 1 Tishri 5737 (25 September 1976); the previous law shall apply to road accidents occurring before the commencement of this Law.

(b) Upon the commencement of this Law, the property of the Road Accident Victims Fund administered by the Israel Insurance Association shall pass to the Fund, and the Fund shall continue to handle, in accordance with the conditions and procedures of that body, claims arising from road accidents occurring before the commencement of this Law.

Passed by the Knesset on 21 Av 5735 (29 July 1975).

Yitzhak Rabin — Prime Minister

Ephraim Katzir — President of the State

Haim J. Zadok — Minister of Justice