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Loss of Working Capacity Insurance: how to tell if you have it and how to claim

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In short

  • Loss of working capacity insurance (אובדן כושר עבודה) pays monthly compensation when you cannot work because of illness or injury.
  • You may have it as a private policy or through managers' insurance at work. A comprehensive pension fund includes similar cover: the disability pension.
  • Find your policies on the Ministry of Finance's Har HaBituach.
  • The policy pays under its own terms, separately from Bituach Leumi. You can receive both.

What to check in the policy

  • The definition of incapacity: your own job only, or any suitable job.
  • The compensation rate and insured salary.
  • The waiting period: how long after the event payments start.
  • Exclusions: pre-existing medical conditions that are not covered.
  • Whether the policy offsets payments from other sources, such as Bituach Leumi.
  • Whether partial incapacity is paid.

How to claim

  1. Check Har HaBituach for your policies and ask the insurer for the full terms.
  2. Notify the insurer of the event and ask for a claim form.
  3. Attach medical documents, a description of your job, payslips and Bituach Leumi decisions if you have them.
  4. The insurer must start checking the claim at once and pay within 30 days of receiving all the documents it needs.

Deadlines

  • Claims for insurance benefits expire 3 years after the event.
  • For disability caused by illness or accident, the clock starts on the day you became entitled to claim under the policy terms.

If your claim is rejected

  • Ask for the reasons in writing and compare them with the policy terms.
  • You can complain to the Capital Market Authority or consult a lawyer.

Frequently asked questions

I receive a Bituach Leumi disability allowance. Does that change anything?

These are separate rights. Some policies offset payments from other sources, so check the terms.

I went back to work part-time.

Some policies also pay for partial incapacity. Check the definitions in your policy.

  • Pension Fund Disability Pension

    A comprehensive pension fund pays a monthly pension if you lose at least 25% of your working capacity. Separate from Bituach Leumi.

  • Har HaBituach: all your policies

    A Ministry of Finance registry where you see all your insurance policies. The starting point for any claim from an insurer.

  • General Disability Allowance

    A monthly allowance for people whose earning capacity fell by at least 50% because of illness, injury or a birth defect. Up to ₪4,711 a month.

Sources

This is general information, not legal advice. Amounts are correct as of the review date and change every January.