Clal Insurance Approves NIS 86 Million Class Action Settlement for Long-Term Care Discounts

The Central District Court has approved a revised class action settlement valued at approximately NIS 86 million involving Clal Insurance, concluding nearly a decade of legal proceedings regarding private long-term care insurance discounts for Maccabi Healthcare Services members.

The lawsuit alleged that the insurance company failed to grant Maccabi members a guaranteed 20% discount on private long-term care policies. The finalized settlement comprises approximately NIS 35.3 million in retroactive cash refunds, including interest and linkage differentials, alongside future premium discounts valued at roughly NIS 50.9 million.

Scope and Implementation of the Settlement

The plaintiff class encompasses individuals who purchased a private long-term care policy from Clal between October 30, 2009, and December 31, 2018, featuring lifetime benefit eligibility, while simultaneously insured under the "Maccabi Siudi" group policy without receiving the stipulated 20% discount.

For past periods, the framework establishes a refund mechanism based on a 16% premium discount covering the timeframe from October 30, 2009, until the judgment becomes final. Clal is mandated to identify eligible policyholders and calculate reimbursement amounts within 60 days of the ruling becoming final. Current policyholders will receive notifications via email or text message within 90 days, with funds transferred directly to their updated payment methods. Former policyholders and heirs will similarly be notified through digital channels or mail.

Looking ahead, eligible class members will receive an 18% discount on ongoing premium payments for the duration of their active policies. Judge Avi Gorman emphasized that the resolution concludes a complex decade-long litigation while providing direct and substantial financial relief to affected consumers.