"Exploited public funds": National Insurance Institute demands millions of shekels from October 7 victims
"Whoever used the benefit did so knowingly": The National Insurance Institute is demanding back about 15 million shekels from victims of hostilities who submitted unrecognized receipts for alternative treatment, including purchases of private consumer goods.
The National Insurance Institute (Bituach Leumi) contacted approximately 2,700 victims of hostilities today, Sunday, requesting refunds for money spent on flight tickets, smartphones, portable speakers, and other items, instead of the intended alternative treatments. The total amount requested is approximately 15 million shekels.
Since October 7, about 86,000 civilian victims of hostilities have been recognized in Israel. At the beginning of the war, the National Insurance Institute provided, as part of "immediate responses" — even before disability percentages were determined — reimbursements for alternative treatments for rehabilitation, including acupuncture, surfing, therapeutic horseback riding, Tuina, and more.
Following the national state of emergency declared after October 7, hundreds of thousands of receipts were sent to the National Insurance Institute for reimbursement — a benefit provided until March 2025.
Upon checking the hundreds of thousands of receipts, it was found that there were discrepancies between the declarations of about 2,700 victims claiming they received treatment within the framework of complementary medicine, and the receipts they presented for the purchase of flight tickets, jewelry, sportswear, shoes, electronic devices, supermarket purchases, and more. It should be emphasized that the complementary treatments are from a defined and known list published on the National Insurance Institute website and in the claim form that every victim submitted and declared.
Furthermore, criminal actors were found who promoted fraudulent procedures, approaching victims of hostilities to forge receipts in exchange for payment. Out of hundreds of thousands of valid receipts for which the National Insurance Institute paid reimbursements, about 2,700 citizens were found to have sent receipts unlawfully, totaling more than 15 million shekels.
The National Insurance Institute sent refund requests to the 2,700 insured individuals after a careful review of the receipts that do not comply with the law. The repayment of the funds can be made through several means, and those who received a request for a refund were given the option to provide proof within 45 days that they indeed received alternative treatment as they declared.
"They did it knowingly"
"The October 7 disaster added tens of thousands of victims to the circle of hostilities, who were recognized and treated by the National Insurance Institute. Reimbursements for alternative treatments were intended for the health of the body and mind and the rehabilitation of the victims. Whoever used these benefits to buy jewelry, a smartphone, furniture, and clothing — did so knowingly."
"This money comes from the public and was earmarked for alternative treatments — not for a personal shopping spree. Such conduct harms the victims of hostilities, the vast majority of whom are honest and need these treatments. Such exploitation of public funds harms the victims and the entire Israeli society. These funds will be returned and will continue to be intended for those eligible only."
