In a recent case the plaintiff had purchased tickets through a travel agency to fly with EL AL Israel Airlines. The price had been calculated in Israeli shekels according to the 'cash rate', rather than the lower 'transfers and cheques rate'. The plaintiff alleged that there was an agency and trust relationship between the travel agency and the carrier, and that thus the travel agency's actions should be attributed to EL AL.
The controversy over whether electric bicycles are motor vehicles and are hence subject to the Law of Compensation to Victims of Road Accidents recently came to an end with a Supreme Court ruling. Since electric bicycles are involved in many accidents, the question of whether the law applies has become important because if electric bicycles were to be considered motor vehicles, there would be a duty of insurance.
Recent precedents have ruled that the limitation period for a subrogation claim by the National Insurance Institute (NII) against a tortfeasor is time barred seven years after the date of occurrence. However, a new amendment to the NII Law has extended the limitation period to 15 years. Insurers should prepare for possible NII claims as a result.
The Tel Aviv District Court recently handed down a guiding court decision regarding directors' and officers' policies, in which several important issues relating to the interpretation of liability insurance policies were decided on for the first time. Although the judgment is not a binding precedent, as it was not issued by the Supreme Court, it will act as a guiding decision for the lower courts (which deal with most insurance cases).
Disputes regarding the interpretation of the wording of bankers' blanket bond policies are rarely brought before the Israeli courts. In a recent case, after 23 years of wrangling, the Supreme Court finally issued its judgment on whether such a policy would apply when notification was given after the policy period had expired and a third party discovered the occurrence.