Luxury Car Dealership Battles Insurance Company Over Arson Damage Payout
In late March, security cameras at the Auto Premium luxury car dealership in Rishon Lezion recorded an arson attack. At around 4 a.m., a motorcyclist arrived, poured a flammable liquid on two BMW vehicles, and after an initial failed attempt, returned with gasoline to successfully ignite the fire. Eight luxury cars were damaged, including four completely burned (two BMWs, a Mercedes, and a Land Rover) and four partially scorched (Porsche, Audi, Land Rover, and BMW). The total damage, including harm to the lot, was estimated at 4.8 million shekels.
Weeks later, police arrested 38-year-old Yitzhak Revivo from Kiryat Malakhi, who denies the charges. In May 2026, the Central District Prosecutor's Office filed an indictment against him. The motive remains unknown, and there is no evidence suggesting insurance fraud in the police investigation.
The dispute now centers on the insurance claim. Migdal Insurance, which insured the vehicles for up to 13 million shekels with a monthly premium of 49,000 shekels, refuses to compensate Auto Premium. Migdal claims the insurance policy does not cover intentional damage or arson, citing a clause they say was mistakenly omitted from the 2025 policy due to human error. Migdal argues this exclusion was never requested or agreed upon by the insured.
Auto Premium contests this refusal, arguing that under contract law, ambiguities in a contract drafted by one party should be interpreted against that party. The dealership accuses Migdal of bad faith by attempting to retroactively insert an exclusion clause. Migdal plans to invoke the "Apharoff ruling" to seek judicial interpretation that would support their position, while Auto Premium insists on enforcing the policy as written.
Migdal stated it will respond fully in court, while Auto Premium's attorney, Chen Gilad, criticized insurance companies for using claim denials as leverage to force lower settlements. The dealership calls on the Capital Market, Insurance and Savings Authority to tighten regulations and impose effective sanctions to prevent unjust claim rejections becoming standard practice.
