Personal Injury Damages Guide — How Compensation is Calculated

What Are Personal Injury Damages and How Is Compensation Calculated

Personal injury damages are physical injuries to your body caused as a result of an accident — traffic accidents, workplace accidents, public negligence, or any wrongful act by a third party. When you are injured in an accident, you are entitled to financial compensation for the damages caused to you. However, calculating compensation is not as straightforward as it may seem — it depends on several significant factors that must be understood to know what you are actually entitled to.

Mandelboim, Gor, Witzman-Gor and Partners Law Firm, with experience of over 18 years representing personal injury claimants, explains on this page how personal injury damages are calculated, what the different ways to obtain compensation are, and what you need to know to protect your rights.

The Main Factors Affecting Personal Injury Compensation Calculation

When calculating compensation for personal injury damages, there are several critical factors that directly affect the amount of compensation you will receive. Each factor is examined in detail and in accordance with the particular circumstances of your case:

• Disability Percentage: This is one of the most central factors. A medical committee of experts will determine what percentage of disability was caused to you as a result of the accident. Disability percentages range from 0% (no disability) to 100% (total disability). The higher the disability percentage, the higher the compensation.
• Type of Damage: Is the damage permanent, temporary, or partial? Permanent damages (such as partial paralysis, loss of vision, or loss of a limb) result in higher compensation than temporary damages that heal over time.
• Loss of Earning Capacity: If the accident impaired your ability to earn or continue working, you are entitled to compensation for lost income. This includes future income if the disability is permanent.
• Age of the Injured Party: A young age with permanent disability may lead to higher compensation because of the many remaining working years considered lost.
• Prior Health Condition: If you had an existing health condition before the accident, the compensation may be lower, as part of the disability may be attributed to the prior condition.
• Type of Insurance and the Insured: Are you insured only by national insurance, or do you also have private insurance? This affects the total compensation you can receive.

The Medical Committee Process — Determining Disability Percentages

The medical committee is the body that determines the disability percentages, and its decision is fundamental to compensation calculation. The committee is composed of specialist doctors in the relevant field (for example, neurologist, orthopedist, psychiatrist) and an investigator representing national insurance or the insurance company.

At the committee meeting, the injured party presents his complaints, symptoms, and the impact on his daily life. The doctors examine him physically, review the medical documentation (X-rays, tests, medical reports), and make a determination regarding the disability percentages. This decision is not final — you have the right to appeal if you dispute the decision.

Important to know: The medical committee does not directly determine the compensation amount, but only the disability percentages. The compensation amount is then calculated in accordance with formulas and tables established by law and case law.

Two Main Ways to Obtain Compensation for Personal Injury Damages

There are two main systems through which compensation for personal injury damages can be obtained: national insurance and private insurance (or a civil claim against the responsible party).

1. National Insurance

National Insurance provides basic protection for every Israeli citizen for workplace accidents, traffic accidents, and several other medical situations. Compensation from national insurance is based on the disability percentages determined by the medical committee and includes a monthly allowance (in cases of permanent disability) and one-time payments. National insurance compensation is usually lower than private insurance, but it is fixed and certain.

2. Private Insurance and Civil Claims

If the accident was caused by negligence or fault of a third party (another driver in a traffic accident, an employer or contractor in a workplace accident, a public authority in a street accident), you can file a civil claim to receive full compensation. This compensation is calculated according to the actual damages caused to you — financial losses, pain and suffering, loss of earning capacity, medical expenses, etc. Compensation from private insurance or a civil claim is usually significantly higher than national insurance.

How to Calculate the Actual Compensation Amount

Calculating the compensation amount for bodily injury is performed in organized stages. Although the formulas are not simple, the basic logic can be understood:

Stage 1: Determining the Disability Percentage

As we explained, the medical committee determines the disability percentage. Let's assume the committee determined that you suffer from 30% disability.

Stage 2: Calculating Compensation for Loss of Earning Capacity

This is calculated according to your income before the accident and the disability percentage. If your monthly income was 10,000 shekels and the disability is 30%, the annual compensation for loss of earning capacity will be approximately 36,000 shekels (10,000 × 30% × 12 months). If the disability is permanent, the compensation is calculated for all remaining years of life, sometimes with a discount due to the fact that the money will be invested for returns.

Stage 3: Compensation for Pain and Suffering

In addition to loss of earning capacity, you are entitled to compensation for the physical and psychological pain you suffered. This compensation is calculated according to the disability percentage and in accordance with tables established by case law. When disability percentages are higher, compensation for pain and suffering is also higher.

Stage 4: Medical and Treatment Costs

If you invested money in medical treatment, medications, physiotherapy, or any other treatment required due to the accident, you are entitled to reimbursement of all such costs. It is important to keep receipts and documentation of all medical expenses.

Stage 5: Deductions and Offsets

In calculating compensation, there may be deductions and offsets. For example, if you have already received compensation from the National Insurance Institute, it may be offset from the total compensation in a civil claim. Also, if the committee determined that part of the disability exists due to a pre-existing health condition (and not solely due to the accident), the compensation may be offset accordingly.

Typical Compensation Ranges — Examples

To give you a general picture, here are examples of compensation ranges in different scenarios. It is important to emphasize: each case is unique, and actual compensation depends on specific circumstances, the medical committee's decision, prior income, and the victim's age:

Important Note: The table above presents general ranges only. Actual compensation varies according to age, income, type of damage, pre-existing health conditions, and additional details. These ranges are not a guarantee, but a general guideline only.

Differences Between National Insurance and Private Insurance

To better understand the compensation you are entitled to, it is important to know the differences between the two systems:

• National Insurance: Fixed compensation based on legal formulas, generally lower in amount, but certain and requiring no proof of third-party fault. Compensation is typically divided into a monthly allowance and a one-time payment.
• Private Insurance / Civil Claim: Compensation calculated according to actual damages, generally significantly higher, but requires proof of fault by the responsible party. Compensation is typically provided as a one-time lump sum.

In many cases, an accident victim is entitled to compensation from both systems. In a civil claim, the national insurance compensation is deducted from the total compensation, so the victim receives only the difference.

Additional Rights You May Have

In addition to compensation for bodily injury, you may be entitled to additional rights:

• Reimbursement of Medical Expenses: Any medical expenses related to treatment of accident injuries.
• Compensation for Loss of Income: Income lost during recovery or due to permanent disability.
• Compensation for Emotional Damage: In some cases, compensation may be awarded for psychological harm such as depression, anxiety, or PTSD resulting from the accident.
• Compensation for Impairment of Future Work Capacity: If the disability is permanent and affects your ability to earn in the future.
• Compensation for Loss of Life Enjoyment: In some cases, compensation may be awarded for reduced ability to enjoy life due to disability.

Process for Filing a Bodily Injury Claim

If you want to file a bodily injury claim, the process typically is divided into the following stages:

1. Documentation Collection: Gather all relevant documentation — accident report, witness statements, medical documentation, medical bills, previous income documentation.
2. Filing a Claim with National Insurance: Submit a claim to national insurance to receive basic compensation and determination of disability percentage by a medical committee.
3. Appeal of Committee Decision (if necessary): If you dispute the disability percentage determined, you may file an appeal to an appeals committee.
4. Filing a Civil Claim: If there is a responsible third party (another driver, employer, contractor, public authority), file a civil claim to receive full compensation for damages.
5. Negotiation or Litigation: In a civil claim, there may be negotiation with the other party or their insurance, or you may need to file the claim in court.

Importance of Specialized Legal Advice

Calculating bodily injury compensation is a complex process requiring deep legal and medical knowledge. A lawyer with experience in this field can:

• Help you prepare the necessary documentation correctly.
• Represent you before the medical committee and ensure the disability is properly assessed.
• File an appeal if you dispute the committee's decision.
• File a civil claim against the responsible party and press for the full compensation you are entitled to.
• Conduct negotiations with the insurance or other party to achieve a fair settlement.

Mendelboums, Gor, Witzman-Gor and Partners Law Firm has over 18 years of experience representing claimants in bodily injury accidents. We specialize in calculating compensation, representation before medical committees, and civil claims. Our first meeting with a new client is free of charge, so you can speak with us freely about your case and receive an initial assessment.