Ayalon delayed payment to an insured and got hit: court unusually doubled the compensation

The Magistrate's Court in Kiryat ruled that Ayalon delayed payment to an insured in bad faith, and doubled the compensation using a special interest rate of ten times. The student, born in 2004, will receive about 88,000 shekels.

The Magistrate's Court in Kiryat ruled that Ayalon Insurance delayed payment of benefits to an insured in bad faith, and doubled the compensation using a special interest rate. The case involves a former student, born in 2004, who was injured three times during activities at a school in the Misgav Regional Council, and was insured under Ayalon's personal accident policy. The student approached the company in 2024 demanding benefits. An expert appointed by Ayalon determined a permanent disability of 10% from the first accident, but the company did not pay. Judge Moti Cohen ruled that Ayalon acted in bad faith, among other things by not providing the insured with the expert opinion until the statement of defense was filed, six months after the lawsuit was filed. The judge applied an exceptional clause in the Insurance Contract Law allowing special interest of up to 20 times the linked interest rate. The student is entitled to compensation of 47,000 shekels for the disability, and with the special interest – about 88,000 shekels. Ayalon responded that in its opinion an error was made in the ruling and it is working to overturn it.