By: Adv. Moshe Taieb

Insurance Claims: NIS 360,000 Awarded Despite Delayed Notification

A civil court ruling addressed the frequently disputed question of what constitutes reasonable notification timing in property insurance claims. The court held that a 5-day delay in reporting an apartment fire to the insurer was reasonable, and that the insurance company could not rely on the delay to avoid liability without proving actual prejudice to its investigation.

The Notification Obligation in Insurance Law

Israeli insurance law requires policyholders to notify their insurer of an insured event within a reasonable time. However, the mere fact of delay does not automatically release the insurer from liability — the insurer must demonstrate that it suffered actual prejudice as a result of the late notification, for example, the loss of the ability to investigate the cause of the loss.

The Court’s Ruling on Delay

The court found that a 5-day period to report a fire in an apartment, during which the policyholder was dealing with the immediate aftermath of the event, constituted reasonable notification timing. The insurer failed to demonstrate that the delay had impaired its ability to investigate the claim.

Compensation Awarded

The court awarded NIS 360,000 in total compensation comprising: insurance benefits for the property damage, compensation for alternative accommodation costs, and an award for distress and inconvenience caused by the insurer’s unjustified refusal to honour the policy.

Key Principle

Insurers cannot use technical delays in notification as a blanket defence to avoid paying legitimate claims. The obligation to prove actual prejudice from any delay lies with the insurer.