Shimon Cohen – Insurance

Summertime (and the Living is Easy!)

Summertime (and the Living is Easy!)

We offer you our summer insurance check list:
1) Travelling overseas?
□ Enjoy!
□ Make sure you have travel insurance (including coverage for various things you might need – maternity, skiing, trip cancellation, etc.). We are travel insurance experts and will personally deal with your claims!
□ Make sure that overseas jewelry cover has been extended and issued on your home contents policy. Without this there is no cover overseas.
□Leaving your house empty? Make sure to turn off water and gas. If you are leaving for more than two months, you must inform your insurance company.

2) Staying here?
□ Enjoy!
□ Young drivers using your car? With all your kids home, it’s essential to check that your policy has been extended to cover young/new drivers. (Most insurance companies have relatively cheap options to add on young drivers for short periods of time.)
□ Overseas visitors using your car – is an overseas license valid?
A tourist or temporary resident can drive a private car in Israel for up to a year following arrival. If the person lives in Israel but returns frequently to חו”ל, this may also be acceptable (the law states: “In case of multiple exits and entries from and to Israel, each case will be judged individually” – what that means, go figure!).
In general, if one is living in Israel, even if you haven’t made formal Aliyah, you must transfer your overseas license to an Israeli one.
□ Did you know? If your kid starts a campfire and causes damage to someone’s new car in the camping ground on the Kinneret (or anywhere in Israel, for that matter)–don’t panic! Your home policy’s Third Party Liability covers you and your family anywhere in Israel (don’t give him any ideas, though!).

Know Your Rights and Obligations
One of the “dark” areas for many English speakers is that bastion of Israeli bureaucracy – Bituach Leumi.
Insuring your domestic workers
Do you have a cleaning woman, gardener or a nurse that cares for a sick family member? In all these cases, you (the employer) are required to pay National Insurance (Bituach Leumi). The benefits to the worker include: maternity leave, work accident, permanent or temporary disability, unemployment, pension, medical insurance etc. If you do not pay, and the worker makes a claim, Bituach Leumi will pay the claim and sue you for the money.
How much does one pay:
a) For an Israeli worker between ages of 18 and 65?
The amount is 7.5% of the salary (of which 2% should be deducted as the worker’s portion).
b) For a foreign worker or Arab worker who is not an Israeli resident?
The amount to pay is 2% of the salary.

*If a few people employ one worker, the salaries can be combined, and the Bituach Leumi is paid as if one salary.

When and how do I pay?
Payments are made twice yearly; in July (for months January to June) and in January (for months July to December).
Call Bituach Leumi and they will provide you with form 614, which can then be paid at any bank.
Simple, but very important for all concerned.


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