Israeli National Insurance Demands 15 Million Shekels Back from Terror Victims for Misused Alternative Therapy Funds

The Israeli National Insurance Institute (NII) has requested approximately 2,700 recognized victims of terror attacks to return around 15 million shekels. These funds were originally allocated for alternative medical treatments but were instead used to purchase items such as airline tickets, smartphones, jewelry, sportswear, and electronics. Since October 7, 2023, about 86,000 civilian terror victims have been recognized in Israel, with the NII providing immediate reimbursements for alternative therapies like acupuncture, surfing therapy, and therapeutic horseback riding to aid rehabilitation.

During the national emergency declared after October 7, hundreds of thousands of receipts were submitted for reimbursement of alternative treatments, a benefit extended through March 2025. However, upon reviewing these receipts, the NII found discrepancies involving roughly 2,700 claimants who declared receiving complementary medicine treatments but submitted receipts for unrelated purchases. The NII emphasized that only treatments from a specific approved list qualify for reimbursement, as outlined on their website and claim forms.

Investigations also uncovered fraudulent schemes where criminals encouraged victims to submit falsified receipts in exchange for payments, submitting these counterfeit documents to the NII. Following a thorough audit, the NII sent refund demands to the 2,700 individuals whose receipts did not comply with regulations. Those asked to repay have 45 days to provide proof that they indeed received the declared alternative treatments.

The NII stated that the funds for alternative therapies are intended solely for the physical and mental rehabilitation of terror victims. It condemned the misuse of these public funds for personal shopping, stressing that such actions harm both the victims and Israeli society. The institute affirmed that the misused money will be recovered and redirected exclusively to eligible beneficiaries.