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The New Class Actions Law 


 
     
 

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Chapter Eight: Discontinuance of Services

 

79. In this chapter, "employees' strike" means any organised complete or partial stoppage of work of a group of employees and includes a go-slow and any other organised disruption of the normal work process.

 
  Definition

80. (a) Where the Commissioner after consultation with the Committee is satisfied that a particular Insurer is unable to manage its business properly owing to a strike of its employees, he may declare that the Insurer has discontinued giving services, and the declaration may provide that it will apply to all or part of the services of the Insurer.

  Declaration of Discontinuance of Services.

(b) The declaration will be published in Reshumot (the Official Gazette) and at least four daily newspapers published in Israel.

   

(c) The declaration will determine the date at which the Insurer discontinued giving services and may determine different dates of discontinuance for different services.

   

(d) In canceling the declaration, it will be lawful to determine different dates of cancellation for different services.

 
   

81. (a) Where an Insurer-in-discontinuance and any person have agreed upon the doing of any act or the discharge of any liability which the Insurer or that person will or may do or discharge at a date between the declaration and its cancellation, the date will be postponed until the expiration of three business days from the date of cancellation of the declaration. Provided that the act of discharge of the liability belongs to the services to which the declaration relates.

  Postponement of Dates

(b) A postponement. under this section will also apply to a date prescribed by a judgment or other decision of a court or of any other judicial or quasi-judicial authority under Law.

 
   

82. (a) Where a liability the discharge of which is postponed under section 81 bore interest before the discontinuance. it will continue to bear interest until the new date of discharge at the rate which applied to the period before the discontinuance.

  Interests and Linkage differentials

(b) Where a liability the discharge of which is postponed under section 81 is value-linked, the duty to pay linkage differentials as agreed upon will apply during the period of discontinuance. For this purpose, value-linked liability, means a liability the whole or part of the amount of which is linked to the rate of exchange of the currency, to the cost-of-living index or to the increase of the price of any other thing.

   

(c) The Commissioner may direct that in the period of discontinuance a person may pay to a banking institution any amount due from him to the Insurer-in-discontinuance and that the payment will be treated as payment to the Insurer-in-discontinuance. The Commissioner may issue directions as to the modes of payment and the modes of publishing the special direction.

 
   

83. Where under an Insurance contract the period of Insurance expires during the period of discontinuance. it will be deemed to be extended, by  consent of the parties, until the expiration of thirty days from the date of cancellation of the declaration unless before the declaration one of the parties disclosed that he or it did not intend to continue the contractual. Relationship or unless the insured person has entered into an Insurance contract with another Insurer, In respect of the period of extension. Insurance premium will be paid in proportion to the length of the period at the rate prescribed in the Insurance contract.

 
  Validity of Policies

84. An Insurer-in-discontinuance will not bear criminal or civil responsibility for an act or omission arising directly out of the discontinuance of the services to which the declaration relates.

 
  Limitation of responsibility
 
 

 
 
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