Mr. Levy, in his early 40s, finally realized his dream. He set up an elaborate workshop dealing with delicate engravings on metals. This was a modern workplace with many facilities.
Mr. Levy created for tax purposes, a “limited liability company” (Chevra Baam) where he was the CEO. In Israel it’s possible to have a limited liability company where 100% of the stocks belong to the same person and in this case to Mr. Levy, who was an employee of his own company, received a monthly salary, had the company pay his monthly contribution to the National Insurance (Bituach Leumi) and had of course a pay stub every month.
Mr. Levy had few workers and he supervised every aspect of his workshop including work safety procedures. He was very demanding with his employers but liberal concerning himself in this respect.
The Accident:
While working on the engraving machines, small sparks flew in all directions and therefore it was necessary to always use protective glasses all the time that employees operated the machines. Mr. Levy used to supervise every step of the process and was always walking around among the machinery.
One day while walking not far from one the machines being operated, some sparks flew directly into his eye causing deep pain and what he thought a scratch in his eye.
After being treated at the hospital by an eye doctor he was informed that he apparently lost sight in one eye forever. After a year of different treatments trying to recover his sight, Mr. Levy realized that he would never see again with that eye.
The legal procedures:
Mr. Levy contracted with a lawyer who assisted him in suing his own company because his own company was his legal employer. Mr. Levy’s company had a good insurance policy covering this kind of liability (personal injury caused to a worker as was the case of Mr. Levy who worked for his own company) therefore the insurer defended the company against Mr. Levy’s claim!
Mr. Levy succeed in convincing the court that he was entitled to compensation because of the company’s negligence (he should have been wearing protective eye wear) but the judge divided the responsibility between the company and the employee. The employee was found responsible for 30% for the accident.
A total of 1.2 million shekels were awarded to Mr. Levy who became legally disabled for the loss of sight – 50% disability recognized by the National Insurance Institute (NII). As a result Mr. Levy received nothing from the insurer – absolutely nothing. Why – you may be asking?
For any compensation benefits granted to the injured, the insurance company deducts the amount paid by the NII to the injured person. The insurance company has to reimburse the NII for a sizable portion of what the NII pays the injured person who is also an insured of the NII. In our case, Mr. Levy had a good income and paid fully to the NII, therefore he was granted a large monthly sum from the day he was injured until the age of 65.
As a result, the sum awarded as monthly payments by the NII (until the age of 65) was higher than 1.2 million therefore Mr. Levy would not receive any direct extra payment from the insurance company!
Mr. Levy’s lawyer appealed, knowing he would not receive any lawyer’s fees for his many years of intensive work because he had an agreement with Mr. Levy stipulating 20% of whatever amount Mr. Levy received as compensation would be paid to the lawyer. 20% of zero meant no fees at all.
Mr. Levy partially won the appeal and was granted and extra 200 hundred thousand shekels paid by the insurance company so the lawyer would receive at least something for 6 years of work and Mr. Levy would have some extra cash for his special needs.
A word of wisdom:
Israel and Israelis have a tradition of disregard for safety rules at work and Israel is not considered a “safe employee country”. We have more accidents than we should and most could be avoided by simply following common sense safety rules.
If you, as a new immigrant, feel uncomfortable about safety in your work place, don’t feel intimidated. Talk to the person responsible for safety and security at your workplace. If you don’t receive a positive or satisfactory response you should contact the government body responsible for safety at work: “Workplace safety & health in Israel”.
I wish you a pleasant and safe day at work.
