Michael was involved in a car accident caused by a client of the Harel insurance company who ignored the Give Way sign. He contacted the company for compensation but received 20,000 shekels less than required. The insurance company claimed that he was partially to blame for the accident and could receive VAT payment from the state as an individual entrepreneur.
However, a small claims court ruled in favor of Michael, stating that the insurance company wrongly blamed him for the accident without evidence. The court emphasized that Michael’s relationship with the tax authorities had no bearing on the insurance company’s liability. As a result, Harel was ordered to pay full compensation to Michael, along with legal costs, compensation for moral damages, and a fine to the state treasury for wasting legal resources.
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