What information am I required to disclose when making an insurance policy in Israel?
An informational article by Shmuel Weinstein, owner and manager of Best Insurance Agency (2013) Ltd.
The Law of Insurance Contracts 1981 requires you to answer all questions that you are asked truthfully, completely, and with good intent. Furthermore, you are required to reveal – even if you are not asked – any information regarding matters where it is reasonable to assume that an insurance company would consider such matters “substantive”.
“Substantive” matters (ענין מהותי in Hebrew) are any matters which may increase the insurance company’s risks or influence the willingness of the insurance company to insure or not, and if so, at what terms. In addition to your legal responsibilities mentioned in the paragraph above, the law requires you to notify the insurance company immediately of any changes that occur in any “substantive” matters.
Not fulfilling these requirements may affect your insurance benefits in a claim.
