National Insurance to Reimburse Benefits After Court Rules on Old Debts

An Israeli regional labor court in Tel Aviv has ordered the National Insurance Institute to immediately return benefits that were offset due to old debts. The ruling came after a woman, who had lived abroad for approximately 20 years and returned to Israel, had significant sums deducted from her unemployment and disability benefits. These deductions were based on old debts dating back to previous years.

The court found that the National Insurance Institute had not taken proper collection action for over seven years, a period that, according to the Institute's own procedures, should lead to the cancellation of the debt. The last collection action discussed in the case occurred in 2011, while the benefit offsets were carried out in 2024.

The court rejected the National Insurance Institute's arguments regarding the claimant's conduct, stating that bad faith on her part was not proven. The judges noted that after so many years, it is unreasonable to expect a citizen to prove the history of a debt, especially when the Institute itself failed to act according to its procedures during that time.

Consequently, the court fully accepted the woman's lawsuit. It mandated the National Insurance Institute to refund all amounts deducted from her unemployment and disability payments, cancel any charges stemming from payment arrangements, and erase the remaining debts in question.