The settlement he offers: Harel will pay millions to policyholders – who will get the money?

A class-action settlement against Harel Insurance: the company will pay 78.3 million shekels to policyholders who received insurance benefits late without interest. The settlement also includes a change in the way required documents are published for claims, to prevent future delays. The Tel Aviv-Jaffa District Court has not yet approved the settlement.

A class-action settlement against Harel Insurance and other insurance companies, initiated in 2013, has been submitted to the Tel Aviv-Jaffa District Court. Under the settlement, Harel is expected to pay 78.3 million shekels to policyholders, beneficiaries, and third parties who received insurance benefits from it without the interest required by law. The main dispute concerned the start date of the 30-day payment period: insurance companies argued that the count begins only after all documents are submitted, while the plaintiffs argued it begins with the initial claim. The District Court accepted the plaintiffs' position, and the Supreme Court rejected the appeal. The settlement also includes a change in how required documents are published for claims, to prevent future delays. Distribution of funds will be based on a mechanism considering the delay duration and benefit amounts. Funds that cannot be directly transferred, as well as amounts under 75 shekels, will be transferred to the class action fund. The parties estimate the total public benefit at approximately 133.1 million shekels, including 78.3 million shekels for past compensation and about 54.8 million shekels for expected future changes in claim handling. Attorney fees are estimated at about 13 million shekels plus VAT, and compensation for representative plaintiffs at about 3.25 million shekels. The settlement requires court approval.