Insurance Tips

Back to Tips Index | When does "No" mean "not quite yet "?

 

This was the strange situation that came before the Tel Aviv Regional Court. Mr. G. asked his insurance agent to cancel his Personal Accident insurance policy on 14.7.98. The agent duly had Mr. G. sign a formal cancellation request and sent this in to the insurance company (Ofek). They received it 3 days later and duly cancelled the policy on the same day 17.7.98. On 29.7.98, Mr. G was seriously injured in a work accident and duly claimed from the policy. The insurance company (you guessed it!) promptly refused to pay displaying the legal cancellation request.

However, amongst the small print in all policies in Israel there lies buried a clause which is meant to benefit all consumers (i.e. those insured). The clause states that any policy is not immediately cancelled, but there is a mandatory 15 day waiting period and only then is the cancellation in force. This clause was meant for 2 reasons:

  • to give a person a chance to reinsure him/herself somewhere else
  • to give a person a chance to reconsider

In this particular case, the accident occurred 9 days after the "cancellation" and therefore the policy was legally still in force. Ofek (the insurance company) did not appreciate this fine point and took the case to the Appeals Court where the Judge Dan Arbel once again upheld Mr. G’s case and he was paid out.

Moral:
"It’s is not over until…."

A few words about accidents in which there are injuries.

  1. If someone is injured, the police must be notified either immediately or within
    48 hours. You have to report to the relevant police department in the city where the accident took place. (In Jerusalem, it is the station next to Binyanei Ha’Uma.)
    You need: the insurance company and policy number of your car, including
    your Bituach Chova and driver’s license.
  2. If a pedestrian or cyclist has been injured, he/she must supply the insurance details of the car involved and the police will issue a "doch nifgaim".
    In cases of hit-and-run, the accident must be reported to the police and also to the government insurance office Karnit 03-560 2662.

All medical treatment is covered in full by the Bituach Chova of the car in which the injured were traveling, or in the case of pedestrians, the car involved.