By: Adv. Moshe Taieb

Uninsured Motorcycle Accident – Entitlement to Compensation from Karnit Fund

This ruling examines a complex legal scenario: when a motorcycle rider causes an accident while riding without valid compulsory insurance, does the injured party retain the right to claim compensation from the Karnit Fund (the Israeli Motor Vehicles Compensation Fund)? The answer turns on Section 7A of the Road Accident Victims Compensation Law.

Section 7A of the Road Accident Victims Compensation Law

Section 7A restricts or eliminates the right to Karnit Fund compensation for victims who are themselves responsible for the absence of insurance — for example, the vehicle owner who allowed the vehicle to be driven without compulsory insurance. The court carefully analysed the scope of this provision and the conditions under which it applies.

The Case Facts

The claimant was injured in an accident involving a motorcycle operated without valid insurance. A key question was whether the claimant fell within the category of persons excluded under Section 7A, and whether the cumulative statutory conditions for exclusion were satisfied.

Court’s Ruling

The court conducted a detailed purposive analysis of Section 7A, holding that the exclusion applies only when all statutory conditions are cumulatively met, and must be construed narrowly in favour of injured parties. Where the claimant was not at fault for the absence of insurance, Karnit Fund liability was upheld.

Practical Importance

This ruling clarifies the protections available to innocent road accident victims even when the at-fault vehicle was uninsured, and delineates the limits of the Section 7A exclusion.