Israeli Court Approves $7.8 Million Settlement in Class Action Against Insurance Firm
Translated & summarized from Ice by baba
An Israeli court approved a NIS 29 million class-action settlement against Clal Insurance for improperly withholding funds due to uncashed checks. The settlement covers policyholders from July 2017 and mandates digital payments as the default for future reimbursements. Unclaimed funds will be largely directed to a state-managed fund, and the company will pay fees to the applicant and their legal counsel.
The story in 6 lines · by baba
- An Israeli court approved a NIS 29 million class-action settlement against Clal Insurance.
- The lawsuit concerned insurance payouts and premium refunds sent via uncashed postal checks.
- Clal Insurance will now default to digital payments for reimbursements.
- Policyholders owed over NIS 76 will be contacted to update bank details for payment.
- 70% of unclaimed funds will go to a state-managed distribution fund.
- The settlement covers policyholders from July 1, 2017, until the ruling is final.
An Israeli court has approved a class-action settlement of approximately NIS 29 million (about $7.8 million) against the insurance company Clal Insurance. The Tel Aviv District Court, presided over by Judge Oded Maor, greenlit the agreement on Thursday, resolving a lawsuit concerning unpaid insurance payouts and premium refunds. The core of the lawsuit alleged that Clal Insurance improperly sent these funds to policyholders via postal checks that were never cashed, instead of using the default methods of bank transfer or credit card refund as mandated by the Capital Markets, Insurance and Savings Authority. The plaintiffs argued that by not cashing the checks, the funds were unlawfully retained by the company.
The settlement, reached before Clal Insurance filed a formal response, covers group members from July 1, 2017, until the court's ruling becomes final. As part of the agreement, Clal Insurance has committed to adhering to regulations by defaulting to digital and direct payment methods for all future reimbursements. Policyholders eligible for more than NIS 76 will be proactively contacted by the company via text message, email, or mail with a secure link to update their bank details. Those who update their information within 120 days of being contacted will receive their full entitlement plus linkage and interest.
Funds that remain unclaimed after the notification period, along with amounts below NIS 67, will not be kept by the company. Instead, 70% of these unclaimed sums will be transferred to a fund for managing and distributing funds established under the Class Actions Law. The court also awarded the applicant a NIS 2.28% fee (plus VAT) from the settlement amount and their legal counsel 14.22% (plus VAT) for their services, to be paid as advances and the remainder upon full implementation of the settlement. Recognizing the early resolution and judicial time saved, the court waived the company's second installment of the court fee and ordered public announcements of the settlement.
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 2
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
