Glossary

Glossary of Important Hebrew Insurance Terms

Achrayut Klalit L’Tzad Gimmel: General Third Party Liability

Third Party – What does it mean?

In the standard homeowner’s policy, there is cover for any accident caused by you or your property which results in death or injury to someone else or damage to his/her property. The amount of this cover varies from company to company and is usually between NIS 500,000 – 1,000,000.

A few examples:

You open your umbrella in Safed and hurt someone – you are covered.
Your bath overflows and ruins the carpet of the neighbor below – you are covered.

The big question is – What is not covered? The following is a partial list:

a) Damage caused willfully by you.

b) Damage caused by you in your professional capacity – i.e. a doctor, who by mistake injures a person he is treating at home is not covered under this policy.

c) Guns – you are covered for damage or injury, but not if you are using the weapon as part of your miluim or if you are a policeman or security guard. In other words, if carrying the weapon is part of your job – the standard policy does not cover you.

d) Damage caused by dogs, cats, etc. – Domestic animals are covered on condition that they are tied up or muzzled as required.

e) “Shiputzim” – contractors’ work in your home is not covered and requires a special policy.

f) Members of your family who live in your home cannot claim against the policy as Third Party. However, if they do not live at home permanently, they are like any other Third Party.

g) Someone employed by you or working for you.

To sum up:

Neighbors – Yes

Patient – No

Cat – Yes

Unmuzzled Rotweiler – No

Your live-in son – No

Your visiting mother-in-law – Yes

P.S. If you need a certain level of cover which is not covered under the standard plan, you must contact your agent. There are separate Third Party policies to cover all eventualities.

Bituach Chova: Compulsory Auto Insurance

Compulsory Motor Insurance.

Bituach Chova

What is it?

The policy covers all bodily injury (including death c”v) which is the result of a motor accident. The policy provides cover for the driver, passengers and pedestrians that are injured in an accident.

What is it not?

The policy does not cover any damage to cars or property.

How does it work?

In practice, the insurance risk is covered by the insurance company that issues the policy. In case of an accident, bituach chova will cover all those injured in your car irrespective of who was at fault.

What happens in the case of a “hit and run” accident?

This is covered by a special fund called “Karnit” which pays out the claim and then tries to find (and sue) the driver. The same principle applies to an “illegal” driver (e.g. a driver without a license, an underage driver, etc.) – the injured party would be paid out and then the driver would be sued.

Common Questions:

Question: When I buy a car, can I use the old bituach chova until I organize things?

Answer: Don’t do it! In case of an accident, it could mean that you are not covered. Make sure your own insurance is in place before you drive away.

Question: I’m selling my car, can I get insurance for a few days?

Answer: Not simple! Call us for possible solutions.

Question: I’ve forgotten to pay the chova and need to get to work. What should I do?

Answer: Many companies (and agents) have options for you to pay directly by credit card and have a paid bituach chova in minutes. This can then be faxed or e-mailed to you. If this option is not available – catch a bus!

Question: Can anyone use my car and be covered?

Answer: Yes, as long as he/she is doing so with your permission and has a license valid in Israel. (Residents in Israel for more than a year must change over their foreign licenses.)

Question: Can I take money for people using my car (e.g. a car pool)?

Answer: This is not covered by the standard chova. (This does not apply to someone offering to share petrol costs, etc.).

Question: If my car is stolen and then causes injuries to a pedestrian, am I liable?

Answer: Because you did not give permission, the injury is covered by “Karnit” and if found, the thief will be sued.

Last but not least, never forget to say Tefilas Haderech.

Bituach Leumi

Israel’s National Insurance Institute

Bituach Makif

Comprehensive Motor Insurance (this includes damage to your own car caused by accident, arson, fire as well as theft of your car. It also covers damage to another car or property).

Bituach Mashkanta

Mortgage Insurance. Required by all mortgage providers, and includes life and property insurance.

Bituach Rechev Tzad Gimmel

Third Party Motor Insurance (includes damage to a Third Party car or property only)

Kupat Cholim

Israel’s Private Health Funds (there are 4 main ones), which all Israeli citizens are entitled to join.

Siudit

Long-term nursing care

Glossary

Glossary of Important Hebrew Insurance Terms

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Pre-existing conditions (not included in the basic policy) Details of Coverage.

Pre-existing conditions (not included in the basic policy) Details of Coverage.