Key Legal and Regulatory Updates Amid the Ongoing State of Emergency
As Operation Rising Lion continues, government ministries and authorities are continuing to announce regulatory reliefs in various areas.
Following are the latest updates and new forms of relief:
- Fast-tracked compensation claims – The Israel Tax Authority has expanded the fast track for individuals and businesses to file claims for compensation in respect of direct war-related property damages of up to ILS 30,000. This fast track enables individuals and businesses to file claims to the Compensation Fund and receive approvals up to seven days after the claim filing date, without having to wait for an appraiser. This applies to claims for damages to buildings, contents, business equipment, and inventories up to a maximum of ILS 30,000 per individual or business (the property owner or party that proves it bears the property rehabilitation expenses or the owner of the damaged contents, including tenants).
Claimants can file claims via this fast track through the ITA’s digital services system (after completing requisite identity authentication) by uploading documents and evidence (such as price quotes and photos) and affidavits attesting that all uploaded documentation is true and accurate. The payment of compensation is contingent upon claimants submitting payment receipts by no later than 30 days after the payment date. Filing via the fast track is in lieu of filing via the regular track and is limited to one claim only.
- Updated guidelines to supervised entities – The Capital Market, Insurance and Savings Authority has issued updated emergency guidelines to supervised entities providing essential services to the Israeli economy (institutional entities and financial service providers) about the need to ensure business continuity, including instructions on how to provide services to the public. In relation to institutional entities, inter alia, the Director General informed all insurance companies that it expects them to automatically extend the period of travel insurance for policyholders stranded abroad until they are able to return to Israel. In relation to war-related property damage, the Director General instructed insurance companies to cancel policies upon receiving claims of damage to an insured’s property, thereby entitling insureds to a refund of their insurance premiums and termination of collections as of that date. The Director General also instructed institutional entities to take measures to ensure that customers are aware of the expiry date of insurance coverage in order to avoid situations whereby they are left without insurance coverage as a result of the state of emergency.
- Extension of the emergency format in the courts system – The Ministry of Justice has extended the validity of the emergency regulations ordering the court system to switch to an emergency format until June 25, 2025. During this emergency period, the entire judicial system in all jurisdictions in Israel is not holding any hearings, apart from urgent hearings specified in the law (urgent appeals to the High Court of Justice, criminal offenses pertaining to the special state of emergency, administrative detentions, detention hearings and releases on bail, and motions for urgent temporary relief in civil proceedings). Due to the damage to the court in Haifa, all urgent court activities were transferred to the court in Hadera. In addition, all time frames stipulated in legislation or by court ruling are automatically extended according to the validity of the emergency regulations. For example, if a statement of defense responding to a statement of claim must be filed within 60 days, this deadline is automatically extended by one week. However, it is important to note that if a court ruling stipulates a specific date, such as filing a response by July 1, 2025, the regulations do not extend this date and the deadline remains in effect (unless the court issues a different ruling).
- Enforcement and Collection Authority switches to an emergency format – Like with the judicial system, the state of emergency in the Enforcement and Collection Authority has also been extended until June 25, 2025. All execution offices, fine collection centers, and all other authority units are shuttered. As a rule, the authority is not serving or executing any habeas corpus or arrest warrants, the registering or vacating of chattels, vehicle seizures, or eviction proceedings. All time frames stipulated in legislation or by court ruling are automatically extended according to the validity of the emergency regulations. Only urgent applications for proceedings may be submitted, and only those specifying the reasons why they are being submitted during the state of emergency will be considered by the Execution Registrar.
- Laboratories as essential enterprises – The Ministry of Economy has defined approved laboratories as essential enterprises, thereby enabling laboratories approved pursuant to the Standards Law of 1953 to continue their activities. Standardization laboratories are responsible for testing products for import and export purposes, including medical devices, electrical goods, infrastructure, hazardous substances, food products, etc., and are therefore deemed essential to maintaining business continuity in the economy. The laboratories must operate in strict compliance with the Home Front Command’s defense directives as publicized.
- Automatic extension for expiring vehicle licenses – Anyone whose vehicle license expires between June 13, 2025, and July 13, 2025, receives an automatic 90-day extension to renew their license.
Our firm’s various departments are at your service to answer any questions and provide advice and assistance in relation to the topics covered in this update and, of course, in relation to any other matter requiring legal support during this complex period.