Insurance Tips
Back to Tips Index | Good Intentions #1
Mr. Z. B. worked for the same firm for 30 years In that period of time, he had a Bituach Menhalim policy that did not include permanent disabaility cover. He then moved to a new employer who took over the original Bituach Minhalim and agreed to carry on paying the premiums. The new employer also added an extra 2½% ostensibly to add on disability cover. However, neither the employer or his bookkeeping staff specified what the extra money was meant for. The insurance company (Migdal) simply added the extra amount to the savings part of the policy.
Unfortunately, Mr. Z.B. was then diagnosed with a brain tumor and was
totally unable to work.
The family claimed for the disability and this was rejected on the grounds
that no one had ever asked for the disability cover to be added on, and
that at least two yearly reports had been sent both to Mr. Z.B. and his
employer.
Mr. Z.B. in turn claimed that there was obvious intent to add on the cover and in fact an additional amount of money had been paid in each month. The judge in the case criticized Migdal for using "Rosh Katan". However, this was not sufficient to counterbalance the fact that mere intention is not enough. Without some form of written request, there was simply no basis for the claim.
Moral: Check your own Biutuach Menhalim – do not assume things
and do not rely on the "yihiye beseder" syndrome!