The Association of Israeli insurance companies appealed to the Supreme court of justice with a request to cancel initiated by the Ministry of Finance on the reform of the market of compulsory insurance of vehicles as illegal and unprofessional.
According to the statement of claim, the reform creates an absurd situation in which insurance companies will be forced to compete with ourselves. In addition, it is argued that the decision to lower fares was made on the basis of incomplete data and without conducting a professional actuarial valuation.
The Ministry’s representatives called the lawsuit baseless, noting that the profits of insurance companies from mandatory insurance of vehicles is 1 billion shekels in shekels 5 billion turnover.
We will remind that on January 27, Finance Minister Moshe Kahlon and the inspector of the insurance market, Dorit Selinger approved the decision to lower the cost of policies of obligatory insurance of the car by 40%. This tariff will be offered by a pool of insurance companies, which is still, by law, was obligated to insure drivers, which the company refused to insure separately.
The decision applies to policies coming into force on March 1, and they can be purchased, starting in February.