Insurance Claim — Breach of Good Faith Duty in Petach Tikva

What is the Duty of Good Faith in Insurance and Why is it Critical to Your Claim?

The duty of good faith in insurance is a legal obligation imposed on the insurance company to act honestly, transparently, and fairly toward the insured (claimant) throughout the entire claims process. This is not merely a moral requirement — it is a legal duty rooted in Israeli common law and the principle that insurance companies hold significant power over the insured, and must therefore exercise that power in a fair and proper manner.

When an insurance company breaches the duty of good faith, it may expose itself to an additional legal claim — a claim not for the coverage itself, but for damages caused as a result of this breach. This means you may be entitled to monetary compensation beyond the original coverage, due to how the company conducted itself.

In Petach Tikva and throughout the central region, we repeatedly see cases where insurance companies delay payments, reject claims without reasonable justification, or make unfair demands of the insured. If you suspect that your insurance company's conduct is unfair, it is important that you know how to protect yourself.

Common Examples of Bad Faith Breach in Insurance Claims

Bad faith violations in insurance can manifest in many different ways. Below are some of the most common examples we encounter in our representation of claimants in Petah Tikva and the surrounding area:

• Arbitrary Claim Rejection: The insurance company rejects a claim without reasonable explanation or without conducting a thorough examination of the details. This includes rejecting claims too hastily, without considering evidence submitted by the insured.
• Unfair Delay in Payment: A claim is approved, but the insurance company delays payment for months without legal grounds or justification. This constitutes a breach of the duty of good faith, especially when the insured requires funds following damage or injury.
• Unfair Demand for Document Completion: The insurance company demands documents that are irrelevant or do not exist, deliberately in order to delay the claim or alter its status.
• Unilateral Assessment of Damages: The insurance company assesses damages unreasonably low, without considering the opinions of independent experts.
• Concealment of Information or Lack of Transparency: The insurance company fails to clarify your rights, their terms and conditions, or the procedure you must follow.
• Pressure to Accept an Unfair Settlement: The insurance company exerts significant pressure on the insured to accept a financial settlement lower than fair, while threatening further delays or refusal to participate in legal proceedings.

Each of these examples can serve as the basis for a bad faith claim. The key is to prove that the insurance company acted in an unfair manner, and that some damage resulted as a consequence.

The Claims Process — What You Can Expect?

When you file a claim regarding a breach of good faith duty against an insurance company, the process typically follows several clear stages. Understanding these stages can help you prepare and know what to expect along the way:

Stage 1: Legal Consultation and Case Assessment

At this stage, you meet with your attorney (such as the experienced professionals at Mandelbum, Gor, and Witzman-Gor law firm) to discuss your evidence, the insurance company's conduct, and the basis of your claim. We review all relevant documents — the insurance policy, correspondence with the company, denials, and anything else related to your case. At this stage, we also assess the strength of your claim and the type of compensation you may be entitled to receive.

Stage 2: Filing the Formal Claim

After preparing your case, we send a formal notice to the insurance company, detailing your allegations, your evidence, and your demand for compensation. At this point, the insurance company must respond within a specified timeframe (usually 30–60 days, depending on circumstances).

Stage 3: Negotiation and Document Exchange

Often, the insurance company will respond to your claim with counterarguments or requests for additional evidence. At this stage, we cooperate with the insurance company to exchange documents, answer questions, and attempt to reach a settlement. Effective negotiation at this stage can save you months of legal proceedings.

Stage 4: Settlement or Full Legal Proceedings

If negotiation is successful, you may reach a financial settlement with the insurance company. If not, your case may proceed to full legal proceedings, in which evidence will be presented before a court or other judicial body. In these proceedings, your attorney will stand by your side to protect your rights.

Stage 5: Judgment or Final Settlement

Finally, the court or other judicial body will need to decide your claim. This may result in a judgment in your favor, in favor of the insurance company, or a settlement dividing the damages between the two parties. Following this, the decision becomes legally binding.

Comparative Table — Common Scenarios in Insurance Claims

Below is a table presenting common scenarios in which injured parties file claims against insurance companies regarding breach of good faith obligations:

Your Rights as an Insured — What You Need to Know

As an insured person in Israel, you have clear legal rights against your insurance company. These include:

• Right to Transparency: The insurance company must explain to you the terms of your policy, your rights, and the claim filing process.
• Right to a Reasoned Response: If the insurance company rejects your claim, it must provide you with a detailed and clear explanation for the rejection.
• Right to Timely Payment: After claim approval, the insurance company must pay you within a reasonable timeframe. Unreasonable delays may serve as grounds for an additional claim.
• Right to Object: You are entitled to oppose the rejection of a claim, file an appeal, or file a legal claim if you suspect the insurance company acted unfairly.
• Right to Legal Representation: You can hire an attorney to represent you in your claim, and the insurance company must recognize this right.

If your insurance company has violated one or more of these rights, you may have grounds for a claim based on breach of good faith obligation.

Why Choose Mandelbaum, Gur, and Witzman-Gur Law Firm in Petach Tikva?

When it comes to insurance claims and breach of good faith duty, you need an attorney who understands the complexities of insurance law in Israel, has experience dealing with insurance companies, and represents claimants only. This means we do not represent insurance companies — we stand on your side alone.

Mandelbaum, Gur, and Witzman-Gur Law Firm was founded in 2008 by attorney Karen Mandelbaum, and since then we have represented victims in tort claims, including insurance claims. In Petach Tikva, located in the heart of the country, we are close to your life and can offer you personal and dedicated legal counsel. Our branch in Petach Tikva (8 Yoni Netanyahu Street) is easily accessible and ready to meet with you at a time that is convenient for you.

What makes us unique:

• Years of Experience: Many years of experience in insurance claims and dealing with insurance companies means we know how they think, how they operate, and how to counter their tactics.
• Representation of Claimants Only: We do not represent insurance companies. We stand by your side alone, which means we are dedicated to advancing your interests.
• Personal and Dedicated Approach: We believe that every case is important, and every client deserves personal attention. We do not treat you as a number in a file — we treat you as a person.
• First Consultation Free of Charge: We offer a first consultation free of charge, where you can discuss your case without any obligation.