Road Accident Victims Compensation Law – 1975

“Road accident” – an occurrence in which bodily damage is caused to a person as a result of the use of a motor vehicle, for purpose of transportation; an event caused as a result of an ctexplosion or catching fire of the vehicle, caused by an element of the vehicle or by a material essential for the vehicle’s ability to operate, even if resulting from a cause outside the vehicle, will be deemed as a road accident; as will an event caused due to an impact with a vehicle parked in a forbidden place, or an event caused by use of the mechanical power of the vehicle, provided that the said use did not change the original purpose of the vehicle; however, an event, resulting from an intentional act designed to cause damage to a person or property of the same person, and the damage caused as a result of the action itself and not by the effects of the action on the uses of the motor vehicle, will not be deemed as a road accident;

“Bodily damage” – death, illness, injury or a physical, mental or intellectual defect, including harm caused to a device required for the operation of one of the body parts, which was attached to the injured persons’ body at the time of the road accident;

“Use of a motor vehicle” – driving a motor vehicle, entering or exiting thereof, parking, pushing or towing thereof, roadside treatment or roadside repair of the car, performed by the user or by another person not in the course of his occupation, including the rolling down or turning over of the motor vehicle, disengagement or falling of a part of the motor vehicle or its cargo while in transit, as well as disengagement or falling off, as mentioned, from a standstill or parked motor vehicle, while not in maintenance of a person in the line of his business, and excluding the uploading or downloading of cargo while the motor vehicle is standing still;

“Victim” – a person to whom bodily damage has been caused in a road accident, except if caused by an act of hostility as defined in the Acts of Hostility Victims Compensation Law – 1970;

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

“Insurer” – according to its meaning in the Insurance Ordinance, including a person exempt from the duty of insurance under Sections 4 to 6 thereof;

“Motor vehicle” or “Vehicle” – a vehicle propelled by mechanical power over land, and is main objective is to be used for land transportation, including train, tractor,  a mobile vehicle capable of moving by mechanical power on a road, and a towed vehicle or supported by a motor vehicle, and excluding wheelchair, handicap’s carriage, and escalators.

“Israeli” –  a person listed in the Population Registration, managed under the Population Registration Law – 1965, and any person who holds permit for temporary stay according the Entry to Israel Law – 1952;

“The Zone“, “The Agreement“, “Palestinian Authority Liability Areas“, “A Zone’s Insurer“, “An Insurer form the Palestinian Civil Liability Areas” – as defined in the Insurance Ordinance.

“The Zones” – as defined in The Law of Implementing the Peace Agreement Between the State of Israel and the Hashemite Kingdom of Jordan – 1995.

(a1) the driver of an Israeli vehicle must compensate the victim who is Israeli, or a foreign tourist for bodily damage caused to him in a road accident in which the vehicle was involved, even if the accident occurred in the Zone or the Palestinian Civil Liability Areas or the Zones and the accident will be deemed to have taken place in Israel.

For the purpose of this Section –

“a Foreign Tourist” – according to its meaning in the Tourism Services Law 1976, excluding any resident of the Zone or the Palestinian Civil Liability Areas provided he was damaged while touring according to its meaning in the said Law;

“An Israeli Vehicle” – A vehicle listed in Israel or need have been listed in Israel according to any Law, or a vehicle, that need not be listed, whose owner is Israeli.

(a2) cancelled

(b) Where the vehicle was used with the permission of the owner or possessor, liability will also be incurred by the person who permitted its use.

(b1)(1)Notwithstanding the provisions of paragraphs (a), (a1) and (b), the duty of the driver and the person who permitted the use of the vehicle as provided in subsection (b), to compensate the victim, shall not apply to a victim who is a resident as defined in the National Health Insurance Law, 1994 (hereinafter – the National Health Insurance Law), due to health services included in the Second Schedule or order under section 8 (g) of the said law,  and provided that the victim is entitled to them under the law;

(2) The provisions stated in paragraph (1), shall not derogate from the obligation to compensate victim who is a resident on waiting period under section 58 of the National Health Insurance, A soldier to whom the National Health Insurance Law does not apply according to section 55 of the said law, or a person entitled to benefits according to his injury under  a chapter of the National Insurance Law [Consolidated Version], 1995.

(c) The liability is absolute and entire and it is immaterial whether or not there was fault on the part of the driver and whether or not there was fault or contributory fault on the part of others.

(b) Where a person is injured outside the vehicles in a road accident in which several vehicles were involved, the drivers will be jointly and severally liable towards him; amongst each other, they will bear the liability in equal shares.  For the purpose of distributing the liability amongst the drivers under this subsection, a vehicle is deemed to be involved in a road accident, if at the time of the accident there was contact between it and any other vehicle, or between the it and the injured person.

(c) In the case of a traffic accident involving one or more than one motorcycle and one or more than one vehicle which is  not a motorcycle, the insurers of the other vehicle will pay to the motorcycle’s insurers, 75% of the compensation for bodily injury that the insurers of the motorcycle must pay as a result of the accident, excluding liability under subsection (b); The insurers of the other vehicle shall be liable  jointly and severally towards the motorcycle insurers and among themselves they will bear the liability in equal shares; Regarding to the apportionment of  liability among  the drivers according to this subsection, the provisions of  paragraph (b) will apply;

In this subsection –

“Motorcycle” – motor vehicle with two wheels, whether or not sidecars are connected to it or not, including a three-scooter and motorcycle;

“Tri-motorcycle” – moving motor vehicle on three wheels and classified as three wheels licenses motorcycle or three wheels scooter provided its own weight does not exceed 400 kg.

(d)The Finance Minister may, by order, with the approval of the Knesset Finance Committee, to change the distribution ratio of debts, as stated in paragraph (c), provided that two years have elapsed from the beginning of the sub-section.

(1) in calculating the compensation in respect of loss of earnings and loss of earning capacity, no income higher than triple the national wage average will be taken into account (hereinafter: “the Maximum Income“); should the loss of earning and the loss of earning capacity be less than one hundred percent, the maximum income will be reduced at the same ratio in which the capacity is less than one hundred percent; for the purpose of this Subsection – “the national wage average” is according to the data of the Central Bureau of Statistics  or the average income according to the National Insurance Law [Combined Version] – 1968, as prior to the determination of the compensation – the greater one of the above two.

(2) Where the said compensation exempt from Income Tax, the loses of the injured for the purpose of these compensation will be calculated according to the income of the injured upon the deduction of the Income Tex applied to it at the time of the determining of the compensation, provided that the reduction for the purpose of said deduction will not exceed 25 percent of the income according to which the said compensations be calculated.

(3) Compensation for non-monetary damages will not exceed one hundred thousand Liras; the Minister of Justice, having consulted the Constitution, legislation and Knesset Judicial Committee, may increase this amount.

(b) The maximum amount under subsection (a)(3) will be linked to the consumer price index from the coming into force of this Law or from the date of the increase of the amount, accordingly; The Minister of Justice may, with the approval of the Constitution, Legislation and Judicial Committee of the Knesset, prescribe, by regulations, tests for calculating the compensation referred to in the said paragraph.

(c) The Court may give judgment by manner of compromise regarding the rights of an injured person under this Law, if the parties to the claim have agreed to grant the Court the aforesaid authority; such judgment may be appealed as any other ruling.

“Dependents” – any person entitled to compensations according to Section 78 of the Tort Ordinance.

“Demand” – As set in the regulations.

(b) A person liable to compensation under this Law will pay the victim or his dependents, as part of the compensation, within 60 days of receiving his written demand –

(1) expenses for the purpose of recovery, including hospitalization fees, incurred by the victim;

(2) monthly payments sufficient, pending a final decision in the matter of compensation, for the recovery of the injured, his welfare costs and upkeep, as well as the upkeep of his family members who depend on him for their upkeep, or the upkeep of his dependents as the case may be; such upkeep costs will be determined having considered the income of the injured prior to the road accident, provided that if the income exceeded the maximum income, only the maximum income will be taken into account.

(c) The provisions of this Section will also apply to an insurer who has provided insurance in respect of liability under this Law, including insurance referred to in Section 3 (a)(2) and Section 3(d) of the Insurance Ordinance.

(d) Payment according to paragraphs (1) or (2) of Subsection (b) will be defined as “Prompt Payments“.

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

(2) The provisions in paragraph (1) shall not  derogate from the duty of payment to a victim who is a resident in the waiting period under section 58 of the National Health Insurance, a soldier which the National Health Insurance does not apply on him according to section 55 of the said law, or a person who is entitled to payment by the injury benefit, under Chapter of The National Insurance Law [Consolidated Version], 1995.

(b) Notwithstanding the provisions of the Courts Law [Combined Version] – 1984, a request for prompt payment will be filed to the Magistrates Court of the local jurisdiction to hear the claim, however, if the main claim has already been filed to any Magistrates Court or to a District Court, the motion for prompt payment will be filed to the same Court.

(b)   Should the requester file no main claim by the deadline, the prompt payment will cease by that date; should the requester file a main claim and later revokes it, the prompt payment will cease on the date of revoking the claim.

“date” –

(1)     with regard to Section 5(b)(1) – 60 days from the date of receiving the claim;

(2)  with regard to Section 5(b)(2) – the date which is set by the Court as the date for monthly payment;

“linkage” – as defined in the Adjudication of Interest and Linkage Law – 1961.

(b)   The Court will not rule on prompt payment for a period exceeding two years from the date of the road accident for which the request for prompt payment was made.

(c)     The Court may, on grounds to be recorded, to change the periods specified in Subsections (a) and (b).

(1) special procedure for request of prompt payment;

(2) the definition of “continuing expenses” and “nursing expenses” for the purpose of Section 5(b)(2).

(1)  the claimant;

(2)  the person liable for the damage according to any Law;

(3) the Fund as meant in Section C (hereinafter: the Fund);

This will be applicable to the amount which the defendant paid to the claimant as prompt payment, and which exceeds the amount awarded in the main claim.

(b)  If the Fund has paid to the claimant a prompt payment as mentioned in Subsection (a) or reimbursed aforesaid payment to the defendant, it will be entitled to reimbursement from the claimant or from the person responsible for the damage according to any Law, and their liability to it under this Law will be separately and jointly; for the purpose of claims prescription period under this subsection, the date on which said payment or reimbursement was made will be the date of the cause of action.

(c) If the Fund has reimbursed the defendant  for payment according to  subsection (a), the defendant will be obliged to extend it any assistance requested and take any reasonable action to assist it to realize its right under  Subsection (b), and will take no action which may prejudice the said right or prevent realization of the right.

(d) Monies to be reimbursed under subsection (a) and (b) will be returned with the addition of cost of living linkage and interested as defined in Adjunction of Interest and Linkage Law – 1961.

(1) the authority of the Court to decide that compensation for loss of earning capacity and continuing expenses will be wholly or partly defrayed by periodical payments linked to the consumer price index;

(2) cases in which the victim may request an increase of the prompt payments awarded;

(3) rights of dependents of a victim who died after periodical payments were awarded to him.

(b)  Having appointed such expert as aforesaid in  Subsection (a), the following instructions will apply:

(1)  Parties will be entitled to summon the expert to  Court for questioning, but not be entitled to submit additional expert evidence on the subject of the proceedings, except with the permission of the  Court in special circumstances which will be recorded;

(2)  Both parties will be entitled to put questions to the expert, in writing, for the clarification of the opinion he submitted.

(3)  The Court will set the expert’s fees, and these will be paid by the parties or one of them, as instructed by the Court.

(1) a person who intentionally caused the accident;

(2) a person who was driving the vehicle in contravention of the Penal Law Amendment (Use of Vehicles without Permission) Law, 1964, or who was in the vehicle knowing that it was being so driven;

(3) a person who was driving the vehicle without having a license to drive it, except where the license had lapsed by reason of non-payment of a fee or due to restriction that imposed under Chapter F’1 Execution Law, 1967;

(4) a person who was using or was helped by the vehicle to commit a felony;

(5) a person who was driving the vehicle without insurance in accordance with the Insurance Ordinance, or while the insurance he held did not cover his use of a vehicle;

(6)  the owner of a vehicle or a person who was using it, who allowed another to drive the vehicle while he held no insurance in accordance with the Insurance Ordinance or while the insurance he held did not cover the aforesaid liability, and who was injured in a road accident which occurred while driving, whether he was in the vehicle or outside of it.

(b) A person who without the provisions of Section 22(b) would have cause of action from the aforesaid road accident as defined in  subsection (a), will be deemed for the purposes of this Section as having cause of action under this Section.

(c) The instructions of Subsection (a) will not derogate from a claim under the Torts Ordinance for a person who has no cause of action under this Law.

(1) a person who is not entitled to compensation as specified in Section 7;

(2) a person not insured under the Insurance Ordinance or whose insurance does not cover the liability involved, other than a person who had annual insurance with expired within 30 days prior to the accident;

(3)  the owner of a vehicle or user as defined in Section 7A.

(b) The liability of a person against whom recourse is had under Subsection (a) will be in accordance with the Torts Ordinance.

(c)  the provisions of this Section will not affect the right of recourse of persons involved in an accident amongst themselves in the manner indicated in Section 3(b).

(1)          the driver liable to compensation is not known;

(2) the driver is not insured under the Insurance Ordinance or his insurance does not cover the liability involved;  this provision will not apply to a non-Israeli victim who drove a vehicle covered by the vehicle’s international insurance card in accordance with the directives of the Insurance Ordinance.

(2a) an insurer to whom an Authorized Manager has appointed by the Commissioner of Insurance in accordance with Section 68(a)(3) of the Insurance Business Control Law – 1981 (hereinafter: Authorized Manager), as defined in the aforesaid Law, and as a result the insurer is unable to meet its obligations, and the Minister of Finance, at the recommendation of the Commissioner of Insurance, has confirmed it appropriate that the Fund act in accordance with this Section;

(3)  the insurer is in liquidation.

(b)  In the cases specified in  Subsection (a), the victim will be entitled to receive compensation from the Fund just as he would be entitled to receive it from the insurer, and the Fund will pay to the hospital the expenses of the victim’s treatment just as an insurer would have to pay under Section 28 of the Insurance Ordinance.

(c)  The Fund is authorized to obtain assistance for the activities of a fund whose purpose is to compensate, in such cases as specified in  Subsection (a), a victim whose injuries occurred it the Area;  an agreement with regard to the aforesaid assistance will be subject to the approval of the Minister of Finance and consultation with the Minister of Justice and Minister of Transportation.

(d)  In the event of a road accident in the Area of or within the Palestinian Authority or in the Areas, the Fund will compensate a non-Israeli victim who is entitled to compensation and is unable to claim compensation from and insurer for reasons of specified in Section (2a) and (3) of Subsection (a); the compensation will be in accordance with the Law applicable to the site of the accident, and the Fund will have the rights specified in Sections 12A and 12B as applicable.

(d1)(1)  A victim, who is an Israeli, filing a claim or request for immediate payment to the Court in Israel (hereinafter – the Claim) against an insurer from the Palestinian Authority Areas as defined in the agreement, or against the Palestinian Commission (hereinafter: the defendant), due to a road accident which occurred in Israel, in the Area or the areas under Palestinian civil responsibility, and the defendant did not file a Statement of Defense after a Statement of Claim was lawfully filed, or ceased to defend, the Court will order the presentation of a Statement of Defense to the Fund and notify the Palestinian Authority or the entity which it has authorized for such matter; if no Statement of Defense is filed or notification of resumption of its defense is received, according to the matter at hand, the Fund will conduct the defense of the claim within thirty days from the date on which the aforesaid notice is given and compensate the victim in accordance with the ruling handed down in the matter, the compensation will be in accordance to the Law applicable to the location of the accident and the rate applicable.

(2)  The government will reimburse the Fund for costs and payments which the Fund has paid as a result of the claim, and have the right to deduct these from the amounts transferred as defined in Section 12 of the Law for Implementation of the Gaza Strip and Jericho Area Agreement (Economic Agreements and Miscellaneous) (Legislative Amendments) 1994, and will be considered for all purposes, including the guarantee of the committee according to the Agreement, as payment by irrevocable ruling against the defendant.

(e) The Fund will pay to a victim who is Israeli, who was injured in a road accident which occurred in the Area or areas under Palestinian authority or in the Areas, and for which  liability is not covered under a policy issued by an insurer, supplementary compensation in the amount of the difference between the compensation to which he would have been entitled had the accident occurred in Israel, and the compensation to which he is entitled to receive under the Law of the site of the accident;  the Fund is entitled to pay the costs of care of the said victim to a hospital, as an insurer is obliged to pay according to Section 28 of the Insurance Ordinance.

(f)  The Fund is entitled to represent a victim, who is Israeli, in accordance with the power of attorney granted to it, in negotiations with an insurer from the Area or from the areas of Gaza and Jericho or with the Fund in the Area or in the areas of Gaza and Jericho, or in legal proceedings against them, and is entitled to join the said legal proceedings if it has a vested interest in their results.

(g)  The Minister of Finance is empowered to establish rules in all matters pertaining to the discharge of functions within the Fund in accordance with the agreement and the instructions of Subsections (d) thru (f).

(b) The Fund being subject to the aforesaid obligation in Section 12(a)(3), it will be considered by the receiver as a re creditor of the insurer for the sum of the liability.

(b) An allegation which a reinsurer may allege toward an insurer may be alleged toward the Fund.

(c) A reinsurance contract and action of the insurer will not derogate from the rights provided to the Fund under this Law.

12D.(a) In this section and section 12E “cost of service delivery” – the cost of medical services that the victim of the road accident receive from the health funds.

(b) The Minister of Finance will publish not later than the thirteenth of Tishrei (October 1, 2009), the notice in the Official Gazette, in respect of the cost of service delivery.

(c) Cost of service delivery will be updated every year in the same way the cost of the basket of health services under section 9 (b) of the National Health Insurance is updated; The Minister of Finance will publish a notice in the Official Gazette each year and close to the date the update, about the cost of service delivery.

12E.(a) In order to finance the cost of service delivery, the insurer will transfer to the fund, in the 10th of each month,  rate that will be set by the Minister of Finance, in order, from the insurance premiums that have been collected by the insurer in the previous month, and for all the policies that  issued under the Insurance Ordinance; in this subsection, “premiums” – the total payments that already collected from an  insurer in the motor insurance sector, excluding the finance supplement to the Fund according to Section 15.

(b) By the end of March of each year, the insurer shall provide to the Minister of Finance and to the Fund Accountant’s approval the full amounts that have been transferred by him under subsection (a), about the previous year.

(c) The Fund may require from any insurer to review and provide within the time specified, any necessary information in her opinion for the purpose of checking the amounts that the insurer had to transfer to the Fund under subsection (a), and if the Minister of Finance Ordered to the fund to hand over the any available information under this subsection, whole or in part – the fund will transfer this information under the conditions that has been set in the same provision. in  this subsection “information”- except for the information as defined in section 7 of the Privacy Protection Act, 1981.

(d) The Minister of Finance may issue instructions concerning the information that each insurer to transfer to any factor as will be determine by those provisions, and with regard to data transfer format and the transfer dates; This subsection shall not derogate from the powers conferred by law, including the Supervision of Financial Services (Insurance), 1981.

(e) The Minister of Finance may prescribe regulations regarding the implementation of this subsection.

12F. (a) The Fund shall transfer the received amounts under section 12E to the NII immediately after admission.

(b) The National Insurance Institute will forward the health funds the received  amounts under subsection (a) at the time of the first transfer occurred and after the time that they received the funds under that subsection, In accordance with the allocation rules in section 17 of the National Health Insurance; In this paragraph, “transfer date” –one of the dates which the National Insurance Institute transfers to the health funds the received amounts from the financing of health services provided under the said Law.

(c) The Minister of Finance may prescribe regulations regarding the implementation of this section; Provisions concerning paragraph (b) shall be determined by agreement with the Minister of Social Services.

(b ) The first Board will be appointed not later than six months from the date of the adoption of this Law by the Knesset.

(c)   The existence and powers of the Fund and the validity of its decisions will not be affected by the vacancy of the seat or a defect in the appointment or continued tenure of a member of the Board.

13A. (a) Member of administration who is not a civil servant, employee of funded body, employee of supported body or employee of a body which he represent him in the administration, Entitled to receive compensation from the fund about participating in meetings of administration, under the provisions of subsection (c), and provided that he is not entitled to receive compensation for participation from another source.

(b) A member of the administration who is not entitled to compensation under the provisions of subsection (a), is entitled to receive reimbursement of expenses from the Fund according to his participation in the administration meetings, according to the provisions of subsection (c), and provided that he is not entitled to receive reimbursement of expenses from another source.

(c) Minister of Finance, with the consent of the Minister of Justice, shall determine the rules and conditions which shall be paid the remuneration and reimbursement of expenses to a Friend of  the administration under this section and their amounts.

(d) In this section, “civil servant”, ” “employee of

funded body”, and “employee of supported body” –

as defined in Article 32 of the foundations budget

for 1985.

(b)   The Articles of Association and any variation or amendment thereof will require the approval of the Minister of Justice and the Constitution, Legislation and Juridical Committee of the Knesset and will be published in Reshumot (the official gazette).

(1) the percentage of the insurance premiums or the amount out of the insurance premiums in New Israeli Shekels, which every insurance company will transfer to the Fund directly or through any insurer to the Fund’s account;

(2) the percentage or the amount out of the insurance premiums in New Israeli Shekels which entities exempt from the duty of insurance under Section 4 to 6 of the Insurance Ordinance, will transfer to the fund.

(b) The Minister of Finance is authorized to prescribe by order in accordance with Subsection (a), the terms, dates and instructions on all aspects of transfer of amounts in participation of the Fund’s financing.

(c)   The Fund will receive the amounts specified in the Agreement from the Palestinian Fund, as defined in the Agreement.

(d) (1) The Authority found as defined in the    Insurance Orrdinance (in this section – the Authority) that in the Fund account an amount in excess of the amount required for funding its activities and ensuring its stability as mentioned in sub- clause (a) (in this clause – the excess amount),
The Authority is therefore permitted to order the Fund to transfer to insureds in the motor vehicles insurance section an amount in NIS, directly or otherwise determined by the Authority, and in general to reduce the amount of premiums, and all with the consent of the Minister of Justice;

(2) The Authority found that the excess amount of over NIS 350 million  shall order the Fund, with consent of the Minister of Justice, to transfer to insureds the excess amount or part thereof, unless the Committee for the Consitution Law and Justice of the Knesset, approves not to do so, and only if this said approval will be handed down by 1st October  of the year prior to the year in which said transfer is not expected.

(e) The Authority will report to the Committee for the Constitution Law and Justice of the Knesset on May 1 of every year, concerning the following:

(1) the amount which existed in the Fund account on December 31 in the year preceding the report, and including the amount that was saved for funding its activities and for ensuring its stability as mentioned in sub-clause (a) and the excess amount;

(2) The amount which the Fund transferred to the insureds according to sub-clause (d) in the year preceding the date of the reporting and the manner in which it was transferred;

(3) The amount  which is expected the Fund will transfer to Insureds according sub-clause (d) in the year of the report and themanner in which it is expected  to be transferred.

Amendment
no. 25 – 2016

Amendment
no. 25 – 2016

15A1. (a) The fund will deliver information received according to clause 15, concerning the name of the insurer of the vehicle and its policy number, according to the license plate number of the vehicle, to the victim or to the party which will determine, according his request  includinginformation which is required for fulfilling his rights, in connection with the road accident; un addition to the aforementioned information, the Fund will deliver to Israel police the license plates numbers and insurance period of the motor vehicle investigation into, the accident and enforcement of legal provisions relating to it and to enforce the provisions of the Insurance Regulation.

(B) the  Minister of Finance, in consultation with the Minister of Justice and with the approval of the Committee for the Constitution Law and Justice of the Knesset, will determine the
parties entitled to receive information according to sub-clause (a), and the manner, the date, and the conditions for delivery of the information from the Fund to the injured, to the said party, and to the Israel Police, as well as the payment which the Fund is permitted to to collect for its delivery, and Minister of Finance is permitted  to
determine various directives in respect of the various parties requesting information.

Provision of information from the Fund (Amendment No.21) 5768-2008

(b)   The authority vested in the District Board of the Chamber of Advocates by the closing passage of Section 82 of the Chamber of Advocates Law –-1961 will not vest in it in respect to a tariff prescribed under this Section.

(1)          the expression “(Third-Party Risks)” in the title thereof will be deleted;

(2)          in Section 1, the definition of “public road” is hereby repealed and the definition of “motor vehicle” will be replaced by the following definition:

“motor vehicle” means a vehicle propelled by mechanical power and includes a motorcycle with a side-car, a motor tricycle, a bicycle or tricycle assisted by a motor, a vehicle draw on or supported by a motor vehicle;”

(3) in Section 2 –

(1)                 the words “against third-party risks” in the marginal note will be deleted;

(2)                 the words “in a public road” and “in respect of third-party risks” in  Subsection (a) will be deleted;

(4) section 3 will be replaced by the following Section:

“Requirements in respect of policy.

(a) A policy meeting the requirements of this Ordinance is a policy issued by an insurer who was authorized at the time of issue and which insures –

(1)             the owner and the driver of the vehicle against any liability they may incur under the Road Accident Victims Compensation Law, 1975 (hereinafter – “the Law“) and against any other liability they may incur in respect of the death or bodily injury of a person caused by or consequent upon the use of a motor vehicle;

(2) the owner of a vehicle driving the same and any person driving it with his permission in respect of bodily damage caused to him in road accidents within the meaning of the Law.”;

(b) A person insured under  Subsection (a)(2) will be entitled to the same compensation as another injured person would be entitled to receive under the Law.”;

(5) the following Section will be inserted after Section 6:

6A. “Duty to make compensation: a person exempt under Sections 4 to 6 from the duty of insurance will be liable to make every compensation which an insurer would have to make if an insurance policy under Section 3(a) existed.”;

(6)          the words “and to compensate the insured person who was driving the vehicle or a person who was driving it with the permission of the insured person for bodily damage caused to him in a road accident in the meaning of these terms in the Law” will be added at the end of Section 12;

(7)          section 14(b) is hereby repealed;

(8)          the closing passage of Section 16, beginning with the words “and any sum paid by an insurer” will be deleted;

(9)          the words “For the purposes of this Section, “insurer” includes the Road Accident Victims Compensation Fund under the Road Accident Victims Compensation Law, 1975″ will be added at the end of Section 19;

(10)  Section 22 is hereby repealed;

(11)        the words “on a public road” in Sections 39 and 40 will be deleted.

(b)   In circumstances where the State has no liability for damages under one of the Sections 5 – 7 of the Civil Wrongs (Liability of the State) Law, 1952) it will also be exempt from liability under this Law as well, or under the Insurance Ordinance, and this will apply to whoever is exempt from damages under Section 7B of the aforesaid Law.

(c)   This Section will apply to an action or failure which occurred prior to the date of its coming into force, however this will not derogate from a final ruling given prior to said date.

(b)   Upon the coming into force of this Law, the property of the Road Accident victims Fund managed by the Israel Union of Insurance companies will pass to the Fund, and the handling of the claims arising out of road accidents which occurred before the coming into force of this Law will be continued by the Fund in accordance with the conditions and procedures of the said body.