On 20th January 2019 the Supervisor published a draft circular regarding transfer of funds by Israeli Insurers to Non-Israeli Reinsurers (hereinafter: New Draft Circular). History: Until 2012, the Control over Financial Services Regulations (ways of investing capital and undertakings of Insurers and management of its liabilities) (hereinafter: the Regulation) stipulated in Clause 25 how much
The Manufacturer may be Summoned to Legal Proceedings in Israel The Global World of Commerce which enables orders through the Internet creates a situation where the manufacturer of the product does not always know the destination of his product. In addition, a machine that was originally purchased by a plant in Arizona, may find its
On 15th October 2018, the Israeli Supreme Court dismissed the appeal of the Hachshara Insurance Company (hereinafter: “Hachshara” and/or “the Insurer”) and declined its allegation that it should be exempt from liability towards a third party when the Insured drove the vehicle under the influence of alcohol (Leave to Appeal 2843/18, Hachshara v. Israel Polikov
Adv. Nitzan Shmueli, liquidator of Shem Tov Ltd. (in liquidation) (hereinafter: the Company) v. Menorah Insurance Co. Ltd (hereinafter: Menorah). In July 2018, the District Court of Jerusalem dismissed a Liquidator Claim against Menorah, based on a Claims Made Policy that was issued 20 years ago and expired 16 years ago. Background: The Liquidator of
In 1991 an amendment to the Israeli Companies Act was enacted, which allowed companies to insure their D&Os. In 1993 less than 15 claims were notified to Insurers under the D&Os' liability policies. In 2017 there were about 520 D&O claims in Israel notified under D&O policies, out of which app. 5% were liquidators/ special
The connection between the legal duty to report a cyber-breach and the exposure to liability claims arising from a cyber-attack has already become common knowledge. In the past year, several developments occurred in the Israeli law increasing the duty to notify a cyber-breach, and thus the exposure to liability claims. Until May 2018, the
In RCA 1219/18 Shay Peretz v. (1) Shlomo Insurance Company (2) Ron Zohar (18 June 2018), the Supreme Court dealt with the issue of whether Article 25 of the Insurance Contract Law, 1981 which discharges the Insurer in case the Insured or the beneficiary submitted a fraudulent claim, applies also to the third party's direct
Dror Zamir Adv. & Hadas Adler, Adv. C.C 3168/09 The Third Step Ltd. v. the Israel Phoenix Insurance Co. Ltd General Background Plaintiff is a company engaged in the business of import and marketing of women's footwear. In December 2006 a fire broke out in Plaintiff's rented storeroom and totally destroyed it and its contents.
Peggy Sharon, Adv. & Alon Katz, Adv. Introduction: Prior the Insurance Contract Law (1981) (also: "the law") failure to take protective measures could lead to a complete loss of benefits. Since then, most court rulings have applied Article 21 of the law, which provides that if the insured fails to take measures for mitigation of
Israel published a new directive draft designed to ensure quick and fair claim settlements of long term care insurances Tammy Greenberg, Adv. & Guy Shmueli During the last few years the Israeli media published many stories of Insureds who purchased Long Term Care policies and who became involved in a lengthy and complex process when trying
C.A 8776/15 Ayalon Insurance Company Ltd v. Malibu Construction Company (December 2017). Background In 2006, the Malibu Construction Company (hereinafter - "the contractor") won a tender for the construction of an underground passage under the railway tracks in Akko. Attached to the tender there was a professional opinion of a soil engineer stating that groundwater
SUBROGATION CLAIM ONLY IN THE NAME OF THE INSURED Peggy Sharon, Adv. On 23 January 2017 the Supreme Court dealt with the question of whether a non-admitted insurer is entitled to file a subrogation claim in Israel in its own name and answered the question in the negative (C.A. 8044/15). The Court upheld the
Adv. Peggy Sharon Adv. Keren Marco Introduction: The Aviation Services Law (Compensation and Assistance for Flight Cancellation or Change of Conditions), 2012 (ASL), defines a "cancelled flight" as: “Any one of the following, however, a change to the flight number will not be deemed to be a flight which has been cancelled: A flight which
Adv. Peggy Sharon and Adv. Keren Marco Introduction In February 2017, the Tel Aviv Magistrates Court declined a passengers' monetary claim for bodily injury damages after it reached the conclusion that the occurrence which was the subject matter of the clam is not considered as “accident” as required by the Convention.[1] The Claim Plaintiff, a
A fine line differentiates between act or omission of a torfeasor which could be covered by Professional Indemnify Policy and act or omission that could be covered by Public Liability Policy. For example, if a pedestrian falls due to a broken pavement – is the Municipality where the pavement is situated covered by its
Hadas Adler, Adv. C.C 3168/09 The Third Step Ltd. v. the Israel Phoenix Insurance Co. Ltd General Background Plaintiff is a company engaged in the business of import and marketing of women's footwear. In December 2006 a fire broke out in Plaintiff's rented storeroom and totally destroyed it and its contents. The storeroom was insured
by Guy Shmueli During the last few years the Israeli media published many stories of Insureds who purchased Long Term Care policies and who became involved in a lengthy and complex process when trying to exercise their rights to obtain said insurance benefits. The issue raised awareness when during a recent meeting of the Israeli
Adv. Moshe Abady, Adv. Yael Navon and Adv. Adi Margalit D&O Liability Team; December 2017 What is the most significant change in D&O Litigation in Israel in the last few years? The increase in the number of motions filed with the Court requesting to certify the filing of Derivative Actions against D&Os. Whereas between the years
Peggy Sharon, Adv. C.A 8776/15 Ayalon Insurance Company Ltd v. Malibu Construction Company (December 2017). Background In 2006, the Malibu Construction Company (hereinafter - "the contractor") won a tender for the construction of an underground passage under the railway tracks in Akko. Attached to the tender there was a professional opinion of a soil engineer