Israeli Insurance Company to Refund 29 Million Shekels to Customers
Translated & summarized from Cursorinfo by baba
Clal Insurance will refund approximately 29 million shekels to thousands of Israeli customers for unclaimed insurance payouts, following a Tel Aviv court's approval of a class-action settlement. The company's practice of sending checks via mail led to many uncashed payments. Customers have 120 days to update their banking details to receive their funds, with specific provisions for unclaimed amounts and compensation for the lawsuit's initiator and their lawyer.
The story in 6 lines · by baba
- Clal Insurance will refund 29 million shekels to thousands of Israeli customers for unclaimed payouts.
- The Tel Aviv District Court approved the settlement on Thursday, October 29.
- The lawsuit stemmed from the company's practice of sending payments via uncashed checks.
- Customers have 120 days to update banking details to receive their full refunds.
- Unclaimed funds will largely be directed to a special fund under class-action law.
- The lawsuit's initiator and their lawyer will receive a percentage of the settlement.
Clal Insurance has agreed to a settlement of approximately 29 million shekels to refund unclaimed insurance payouts to thousands of Israelis. The Tel Aviv District Court approved the agreement on Thursday, October 29, following a class-action lawsuit concerning the company's practice of sending payouts and refunds via regular mail as checks. Many of these checks were never cashed, leaving the funds with the insurance company.
Under current regulations from the Capital Markets Authority, insurance companies must default to direct bank transfers or card payments. Mailing checks is permissible only if banking details are unavailable or upon customer request. The lawsuit covers clients who were due payments from July 1, 2017, until the court's decision.
Clients owed over 76 shekels will receive notifications via SMS, email, or mail from Clal Insurance, including a secure link to update their banking details. They will have 120 days to provide this information to receive the full amount, potentially with additional interest. Unclaimed funds, even small amounts, will largely go to a special fund managed under class-action law, with 70% allocated to this fund.
Clal Insurance is also mandated to change its payment procedures to prioritize direct and digital methods. The lawsuit's initiator will receive 2.28% of the settlement, and their lawyer will receive 14.22%, both plus VAT. The court acknowledged the early settlement reduced legal costs and process duration. The company must also publish details of the decision in the press and on its website.
This settlement occurs amid increased scrutiny of customer rights in the insurance sector. A recent report indicated that Israeli insurance and related organizations paid out about 21.5 million shekels to customers in 2025 due to complaints, with 16.2 million shekels from insurance companies specifically. Customers are advised to check for notifications and update their bank details within the 120-day window to ensure full reimbursement.
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