Insurance company Israel Phoenix and its general director Dr. Itamar Borovitz, today rejected the plea bargain offered as part of the insurance cartel affair. The board of directors of the Phoenix made the decision on Sunday, and an official announcement has been submitted to the State Attorney’s office. The insurance company decided not to request a hearing, and will instead attempt to defend itself in court.
At the same time, insurance companies Menorah and Zion may decide not to join the plea bargain arrangement. Menorah general manager Shabtai Angel, refused to comment on the matter. Zion general manager Rami Tiber told “Globes” he will consult on the matter with the heads of Phoenix, and hear their reasons for the decision not to join, before making a final decision.
"Globes" has also learned that, in light of the new development, Sahar Insurance may not join may not join the plea bargain agreement. Chairman of Sahar parent company the Harel group Yair Hamburger told “Globes” that the Phoenix’s decision had created a new situation, and the company would consider its moves.
The three other companies, Clal Insurance, Migdal, Hamagen, have agreed to the plea bargain terms, and will pay fines of up to NIS 6 million. The manager of each company will be sentenced to imprisonment and a suspended sentence. Clal will in any case agree to the plea bargain. The Ayalon insurance company has already announced it will not participate in the plea.
The Phoenix says that, in its opinion, it did not break the law, and there is no reason it should admit guilt in court to crimes it did not commit. The company feels that a hearing at the Jerusalem district court will reveal the true state of the insurance field at that time, and will bring in expert witnesses from abroad, among them managers of reinsurance firms, who will prove to the court that the company’s activities met accepted insurance industry standards.