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On the Deduction of National Insurance Payments from Tort Victims' Claims | The Federmann Center for the Study of Rationality

On the Deduction of National Insurance Payments from Tort Victims' Claims

Abstract:

In CA 1093/07 Bachar v. Fokmann [2009] (request for additional hearing denied, 2010) , the Israeli Supreme Court has formed a formula for calculating the deduction of NII payments from a tort victim's claim, when only some of the victim's impairment is causally linked to the tortious act in question. Overall, six Supreme Court Justices have reviewed and affirmed this simple formula. However, this formula is incorrect, as it contradicts some of the most basic tort premises, ignores the way impairment is calculated, and necessarily leads to the under-compensation of the victim, and to an unjust enrichment of either the tortfeasor, the National Insurance Institute, or both. This Article, therefore, calls for the adoption of a different formula that is both legally and arithmetically correct.

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