Latest updates

Lightning damage to aircraft on incoming flights – Aviation Services Law special circumstances
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 13 November 2019

In most cases, flights are operated by aircraft that arrive at an airport from a previous flight. As such, flights are sometimes delayed or cancelled due to a delay or cancellation of the previous flight. The Tel Aviv District Court recently denied a motion for leave to appeal filed by a passenger whose claim regarding the cancellation of his flight due to lightning damage to the aircraft which had occurred during the previous flight was denied by the Tel Aviv Small Claims Court.

Court redefines relationship between insureds, tortfeasors and National Insurance Institute
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 15 October 2019

Employees in Israel are automatically insured for work accidents by the National Insurance Institute (NII). Until recently, if an insured filed a claim against a third party and the claim was settled, such a settlement was perceived as an admission of liability with regard to the NII's subrogation. A recent Tel Aviv District Court judgment has changed this perception.

Insurance, diamonds and fraud: court declines insured's appeal regarding fraudulent jewellers block claim
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 27 August 2019

The Supreme Court recently declined an appeal filed by an insured and several companies controlled by him against the insurers Allianz Versicherungs, Menorah Mivtachim Insurance Company and HDI-Gerling Industrie Versicherungs. The insurers had argued and proved in the district court that the claim was fraudulent. The Supreme Court stated in the appeal that the factual basis determined by the district court was sufficient to conclude that the insured event had not occurred.

What is considered a cancelled flight under the Aviation Services Law?
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 14 August 2019

The Small Claims Court recently rejected two passengers' claim that their flight should be considered a cancelled flight under the Aviation Services Law. The case examined whether an airline should pay compensation for a missed connecting flight when passengers book two flights from the same company with a short connection time.

Insurer liable for extra-contractual damage
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 23 July 2019

The Rishon LeZion Magistrate's Court recently addressed the extent to which insurers are responsible to their policyholders and whether this responsibility is limited to matters included in a policy. The case concerned a claim filed by an insured against an insurer for damages caused as a direct result of a water leak. The court ruled that the insurer had acted negligently as its representative had misled the policyholder regarding the insurance coverage offered.

Courts underline passengers' duty to arrive at departure gate on time
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 29 May 2019

Under the Aviation Services Law (Compensation and Assistance for Flight Cancellation or Change of Conditions), passengers who are denied boarding are entitled to compensation. However, in two recent district court judgments concerning passengers that were denied boarding, the courts found that passengers must arrive at the boarding gate on time. As this duty had not been fulfilled in either case, the airlines were not obliged to pay compensation.

No-fault system and compensation for road accidents
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 21 May 2019

Israel has a no-fault system for road accident compensation under the Road Accident Victims Compensation Law. According to the law, drivers must have a valid insurance policy that covers all bodily injuries. This mandatory insurance system ensures that drivers, passengers and any third parties receive compensation when injured in a road accident. Further, it provides compensation to pedestrians who have been hit and injured by an insured motor vehicle.

Court has jurisdiction over recovery claim filed by Israeli insurer against foreign reinsurer
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 26 March 2019

The Tel Aviv District Court recently acknowledged jurisdiction over a claim filed by an Israeli insurer against a foreign reinsurer that had refused to participate in a settlement agreed by all of the other reinsurers. The court noted that there was no dispute that the reinsurers' agreement included an exclusive jurisdiction clause referring to the Israeli courts and ordered a statement of claim to be served on the reinsurer.

When are technical malfunctions considered special circumstances?
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 27 February 2019

The Beit Shean Small Claims Court recently declined a claim for compensation under the Aviation Services Law due to a delayed flight. The plaintiff had booked a return flight from Tel Aviv to Amsterdam with Arkia Airlines, which arrived in Amsterdam late after a nine-and-a-half-hour delay due to a technical fault. The court dismissed the claim and found that Arkia had proved that the technical malfunction had been caused by a fault in the aircraft's wing shelving, which had been beyond the airline's control.

Sporting event organisers should reconsider scope of coverage
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 26 February 2019

Insureds purchase insurance coverage for their potential liability according to the level of their exposure towards third parties. In a recent judgment, the organisers of a cycling competition were found liable towards a cyclist who had been injured during a competition, and their insurance coverage was well below the damages that the court imposed. Following this judgment, sporting event organisers should reconsider the scope of their insurance coverage.

Overseas product manufacturers may be liable for damages caused in Israel
Levitan, Sharon & Co
  • Product Regulation & Liability
  • Israel
  • 07 February 2019

Under a recent amendment to the Civil Procedure Regulations, manufacturers that produce products outside Israel can still be sued in Israel. As a result, a claim against a foreign defendant can be dealt with by an Israeli court following a service of suit issued by a court outside Israel. This service applies Israeli jurisdiction to the foreign defendant, thus obliging it to file a defence to the claim in an Israeli court and attend the proceeding as a defendant.

Are insurers exempt from liability towards third parties where insured driver was drunk?
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 18 December 2018

The Supreme Court recently dismissed the appeal of an insurer, declining its allegation that it should be exempt from liability towards a third party as the insured had driven under the influence of alcohol. The court determined that the standard motor vehicle insurance policy is aimed at protecting the insured. Further, an insurer's liability should not be narrowed and damage caused by a driver who drives under the influence of alcohol should not be excluded from coverage.

Aviation Services Law does not apply to domestic flights outside Israel
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 28 November 2018

The Tel Aviv Small Claims Court recently declined a passenger's claim for compensation against Qantas and Worldwide Travel and Tourism Ltd, concluding that as the flight in question was a domestic flight within New Zealand, Israeli law did not apply. The court stated that a 'flight operator' is defined in Clause 1 of the Aviation Services Law as an operator that operates flights to and from Israel. Therefore, the law does not apply when connecting flights to Israel are operated by a different airline.

Duties to notify cyber breach updated
Levitan, Sharon & Co
  • Tech, Data, Telecoms & Media
  • Israel
  • 23 November 2018

The Israeli Securities Authority (ISA) recently published a position statement, according to which, in cases of significant cyberattack, public companies must examine the need to issue an immediate report to their investors notifying them of the attack. While the position statement was meant only to clarify the ISA's view regarding the law and not to change the legal situation, it highlights the challenges involved in dealing with cyber events.

Denial of liquidator claim based on 20-year-old claims-made policy
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 09 October 2018

The Jerusalem District Court recently dismissed a liquidator claim against an insurer based on a claims-made policy that had been issued 20 years previously and expired four years later. The court stated that it could not accept a claim filed 16 years after a company had stopped paying its claims-made insurance premiums as doing so could create a situation in which a policy never ends, which would be unreasonable.

How does insured's fraudulent claim affect third-party insurance rights?
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 21 August 2018

The Supreme Court recently examined whether Article 25 of the Insurance Contract Law, which discharges an insurer of liability where an insured or beneficiary submits a fraudulent claim, also applies to third-party claims made in good faith. The court's decision clarifies that fraud by an insured will also affect bona fide third-party claims and that the total discharge of an insurer does not require a causal connection between the fraud and the insurer's liability to be proven.

Passenger's responsibility to arrive at departure gate on time
Levitan, Sharon & Co
  • Aviation
  • Israel
  • 25 July 2018

The Tel Aviv Magistrates Court recently declined a passenger's claim that Turkish Airlines should compensate him for being denied boarding. The court concluded that the plaintiff had failed to arrive at the departure gate on time and that he had known, or should have known, the final boarding time for passengers.

Importance of providing insurance policies to insureds
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 19 June 2018

An insured recently filed a claim against its insurer with the Jerusalem Magistrate Court, which dismissed the claim based on policy exclusions. The insured then appealed to the district court, which found that the insured was entitled to insurance benefits as there was no proof that it had received a copy of the policy and been aware of the exclusions. The insurer requested leave to appeal to the Supreme Court, which dismissed the appeal and ordered the insurer to bear the insured's expenses.

Withdrawal of class action due to lack of individual cause of action
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 24 April 2018

The plaintiff in a recent case filed a claim and a motion to certify the claim as a class action against the insurer. The insurer paid the plaintiff only 85% of the actual damage and notified her that following the examination of the parties' versions and the damaged parts of the cars involved, it had deducted the plaintiff's contributory negligence at a rate of 15%. The insurer argued, among other things, that the plaintiff had no individual cause of action.

Is insured obliged to pay deductible despite objection to settlement?
Levitan, Sharon & Co
  • Insurance
  • Israel
  • 03 April 2018

A recent Haifa Magistrate's Court decision concerned Hachshara Insurance Company's claim that its insured must pay the deductible despite objecting to the settlement agreement signed between the insurer and a third party. The insured had claimed that she was not required to pay the deductible as the insurer had reached the settlement without informing her and she had objected to it. The court rejected both claims and ordered the insured to pay the deductible plus legal fees.