Sources inform ''Globes'' that In the past two years, Migdal Insurance gave preferential treatment and life and health insurance policies to thousands of employees of large companies.
The benefits apparently violate 1983 regulations issued by then Supervisor of Insurance Dr. Ben-Ami Zuckerman, forbidding tariff discrimination between life insurance policy holders. The Ministry of Finance spokesman confirmed that the regulations are still valid.
The benefits were awards to employees of Sapiens International NV (Nasdaq: SPNS), Tecnomatix Technologies (Nasdaq: TCNO), Minet Information Technologies, Dansher Maabarot, Netcom, Lidor Chemicals and other companies. At Lidor Chemicals, the benefits were given only to senior executives.
The benefits included giving life insurance policies without a health declaration, increasing coverage by 20% without a health declaration, paying amounts to the policy holder without offsetting amounts the policy holder received from the National Insurance Institute, free coverage for transplants and special medical treatments, increased loans at reduced interest, and in at least one case, at an interest rate 0.25% higher than normal.
Migdal Insurance deputy general manager and head of life insurance Dr. Nehemia Asher said in response that he could not comment on the matter, since business contracts with customers were confidential.
Asher added that the benefits, if granted, were not at the expense of other policy holders, but at the expense of the agent or company, and that Migdal Insurance was solid and profitable.
Published by Israel's Business Arena on 13 February 2002