Class action motion filed against Menora Mivtachim's Shomera: Claims of car insurance claim rejections totaling ₪2.4 million

Menora Mivtachim's subsidiary, Shomera Insurance, is facing a class action motion alleging an improper pattern of denying insurance claims due to driver's license issues. Estimated damages to the class: ₪2.43 million.

A motion to approve a class action has been filed against Shomera, a subsidiary of Menora Mivtachim Holdings. The lawsuit, amounting to ₪2.43 million, claims that Shomera systematically rejects car insurance claims in cases of license revocation or failure to complete a defensive driving course, contrary to law and policy terms. The company stated it is reviewing the details of the lawsuit.

Menora Mivtachim Holdings, one of Israel's largest insurance and finance groups, reported the filing of a motion to approve a class action against its subsidiary, Shomera Insurance Company Ltd. The motion, filed in the Magistrate's Court in Beit She'an, alleges an improper and systematic practice of rejecting car insurance claims, with total damages to the insured class estimated at ₪2.43 million. This event puts the company's claims handling policy to the test and exposes it to legal and financial risk.

According to the report received at Shomera's offices on October 11, 2026, the core of the lawsuit is the claim that the company "adopted an improper practice of removing insurance coverage" in cases related to the driving license status of the insured driver. Specific cases cited in the motion include driver's license revocation, failure to deposit a license as required for a set period, or failure to complete a defensive driving course that led to license suspension. According to the applicant, Shomera routinely refrains from compensating insured parties or third parties in these situations, "in complete contradiction to what is required by law and/or according to the terms of the standard policy and/or according to the defendant's own policy," as stated in the motion.

The class that the plaintiff seeks to represent is broad and includes "anyone who submitted a claim to the respondent for insurance benefits and/or tort compensation," whether an insured party or a third party, whose claim was rejected against the background of the driver's license issues. The relevant period for the lawsuit spans the seven years prior to the filing of the motion. The personal damage of the applicant himself, which served as the basis for filing the lawsuit, stands at ₪13,698, while the estimated cumulative damage for all members of the alleged class reaches ₪2,430,000.

The central causes of action detailed in the motion are diverse and include breach of a statutory duty, breach of the duty of good faith in contract performance, unjust enrichment, negligence, and even fraud. Accordingly, the remedies sought by the plaintiff are combined: a declaratory judgment determining that Shomera's conduct is illegal and contradicts the Insurance Supervision Regulations; a financial remedy obligating the company to return the rejected insurance benefits plus interest, linkage, and special interest to class members; and an injunction ordering the company to refrain from similar conduct in the future.

At this stage, Menora Mivtachim notes that Shomera is "studying the lawsuit and the motion," as is expected at this preliminary stage of the legal proceedings. The decision on whether to approve the lawsuit as a class action will be made by the court after Shomera submits its response and the parties present their arguments. Approval of the motion would constitute a significant milestone in the proceedings and open the door to an in-depth review of the company's procedures.