Mass Refund — What Insurance Companies Were Hiding

The Tel Aviv District Court approved a class-action settlement against the insurance company Hachshara, which will refund clients 1.8 million shekels for an illegally charged 20-shekel fee in 2021 for extending coverage to additional drivers. The company stopped charging the fee in July 2022.

The Tel Aviv District Court approved a class-action settlement against the insurance company Hachshara. The company will refund clients approximately 1.8 million shekels — 85% of the illegally collected amounts. The lawsuit was filed over the collection in 2021 of an additional 20-shekel fee for extending insurance coverage to additional drivers. The fee had no legal basis, was not stipulated in the policy, and contradicted instructions from the insurance market regulator. The company stopped charging the fee in July 2022. Current clients will receive compensation credited to their policies, while former clients will receive funds via bank transfer. Unclaimed amounts will be directed to a public fund for reservists and their families. The judge noted the high rate of return. Attorney Yitzhak Aharonov stated that the decision sends a clear signal to the market: insurers have no right to charge fees not specified in the offer, not approved by the regulator, and not agreed upon with the insured.

Mass Refund — What Insurance Companies Were Hiding