Insurance, Levitan, Sharon & Co updates


Contributed by Levitan, Sharon & Co
Ministry of Finance eases requirements to obtain insurer's licence in Israel
  • Israel
  • February 20 2018

With the aim of increasing competition in the insurance market, the parliamentary finance committee recently approved a proposed Ministry of Finance regulation that will reduce the minimum capital required for a new insurance company, thus enabling new players to enter this confined market. The change in equity requirements is notable and increases the opportunity for new investors to consider establishing insurance activities in Israel.

Is groundwater flooding a foreseen event in a construction policy?
  • Israel
  • January 23 2018

In a recent Supreme Court case, the insurer argued that it had been known that groundwater existed at a construction site before work commenced. Any damage caused as a result of groundwater was therefore foreseeable and not covered. The insured denied this and claimed that the insurance policy included no exclusion for groundwater damage. The court examined the contract's language to search for the contract's purpose based on the parties' intention before the insurance event.

Insured's disclosure duty versus insurer's obligation to conduct independent investigations
  • Israel
  • December 19 2017

A recent Tel Aviv Economic District Court case examined the issue of an insured's disclosure duty versus an insurer's obligation to conduct independent investigations. The court determined that an insured has a broad disclosure obligation during the underwriting of a policy, and that an insurance contract is subject to duties of good faith and fairness. Therefore, an insurer is entitled to rely on the information provided to it by an insured and is not obliged to conduct additional independent investigations.

Court declines jewellers' block claim, accepting argument of fraud
  • Israel
  • October 24 2017

The Central District Court recently declined a jewellers' block policy claim after the insurers proved that the claim had been filed with fraudulent intent. The case concerned an Israeli diamonteer who claimed that $10 million worth of diamonds had been stolen from him under the threat of violence. However, following an investigation by the insurers, it was revealed that a number of the stolen diamonds were still in the claimant's possession after the alleged robbery.

Third-party liability or professional indemnity – which policy should apply?
  • Israel
  • July 18 2017

There is a fine line between whether the act or omission of a tortfeasor is covered by a professional indemnity or public liability policy. To complicate the situation in Israel, professional indemnity policies are issued on a claims-made basis and public liability policies on an occurrence basis. The Tel Aviv Magistrates Court recently addressed these matters.

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