Clal Insurance to Grant NIS 83 Million in Discounts in Long-Term Care Insurance Class Action Settlement

Central District Court Judge Avi Gurman has approved a settlement in a class-action lawsuit, requiring Clal Insurance to provide NIS 86 million in discounts to insured individuals. The settlement specifically benefits members of Maccabi Healthcare Services who were covered by collective long-term care insurance and also purchased individual long-term care policies from Clal.

Under the agreement, the representative plaintiff, Yariv Aaron, will receive NIS 1.6 million, while attorneys Yaniv Statis and Shlomi Mushkovitz will receive NIS 10 million. The lawsuit, filed in 2016, alleged that Clal Insurance violated its commitment to provide a 20% discount on individual policies to these members. Clal Insurance had argued that the discount was conditional, applying only to policies purchased directly and not through agents, and only to lifelong coverage, not fixed terms, and based on approved rates, not the lowest premium charged.

The legal process involved several stages, including preliminary hearings in 2017, failed mediation attempts with the late attorney Ram Caspi, and evidentiary hearings in 2019. The request for class action was approved by Judge Yechiel Kiner in 2021. Further mediation efforts with attorneys Amos Gabrieli and Vered Elkabetz in 2023 led to the appointment of accountant Regina Unger as an expert.

The settlement, submitted in May 2025 and amended after the Attorney General's response a year later, divides the compensation into two groups. Policyholders who previously paid the full rate for individual policies will receive a 16% discount, totaling NIS 35.3 million. They will also receive an 18% discount until their policies expire, amounting to NIS 50.9 million. Procedures for returning past discounts to the heirs of deceased policyholders are also included.

Judge Gurman noted that the settlement provides a significant benefit to a group of policyholders who had not received any advantages for many years. He acknowledged that it is a compromise, reflecting the assessed risks and chances of success, and highlighted the importance of resolving the decade-long case to prevent further delays in providing relief to policyholders and their heirs.