Court reprimands insurance company for lack of sensitivity toward Sderot evacuee

The Deputy President of the Magistrate's Court in Ramle, Judge Abigail Frey, has issued a sharp rebuke to the insurance company "Ayalon" for withholding benefits from a victim of hostilities involved in a car accident.

"When dealing with a resident of Sderot who was evacuated from his home due to the events of October 7, experienced proven trauma, and was recognized as a victim of hostilities, it was expected that the defendant would show extra sensitivity," the judge wrote. She ordered the company to pay the full damages claimed—106,752 shekels—plus legal expenses.

The plaintiff returned to his home in the Gaza envelope only last May. In November 2024, he was involved in a car accident that resulted in his vehicle being declared a total loss. His claim for insurance benefits was rejected by "Ayalon" on the grounds that his driver's license was invalid at the time of the crash.

Represented by attorney Ori Vininger, the plaintiff argued that due to his evacuation, he never received any notice regarding the suspension of his license. The plaintiff, who has been recognized by the National Insurance Institute as a victim of hostilities suffering from temporary mental disability, sought full compensation for the vehicle.

"Ayalon," represented by attorney Amitai Savion, argued that the denial of benefits was lawful, relying on the "presumption of delivery," which holds that a registered letter sent to a person's address is legally considered received. The company further contended that the plaintiff could have returned to Sderot as early as April 2024 and should have proactively checked his accumulated penalty points.

Judge Frey rejected this defense, emphasizing that the company failed to cite any legal basis for its demand that the plaintiff actively monitor his license status under such circumstances. She noted that according to the Sderot Municipality, the return of residents was based on their subjective sense of security and fear, rather than a mandatory deadline.

"The court cannot help but express deep dissatisfaction with the defendant's conduct. As a central player in the insurance market, the defendant bears an increased responsibility to act in good faith and with discretion, especially in complex cases arising from war and terror," the judge stated. She added that the company's rigid, formalistic approach demonstrated a fundamental misunderstanding of the reality faced by citizens during the war.

The claim was accepted in full. "Ayalon" was ordered to pay the vehicle's value of 106,752 shekels, along with 23,000 shekels in legal fees and expenses.