Court Orders National Insurance to Refund Erroneously Collected Debts

The Regional Labor Court in Tel Aviv has ordered the National Insurance Institute (Bituah Leumi) to refund all sums that were offset from unemployment and disability benefits, and to return funds that were collected in installments. The ruling stems from a case where debts were collected for over seven years without proper authorization.

The court determined that the prolonged period of collection, exceeding seven years, mandates the complete cancellation of all old debts under the institute's procedures. This decision addresses a long-standing issue where individuals continued to have funds deducted from their benefits, sometimes for years, without a clear legal basis or proper administrative process.

The ruling emphasizes the importance of adhering to established procedures for debt collection and benefit offsets. It requires the National Insurance Institute to not only refund the improperly collected amounts but also to return any installment payments made by individuals towards these debts. The court's directive aims to rectify past administrative errors and ensure fair treatment for benefit recipients.