Palestinian Authority Blames Israel in 553 Million Shekel Car Theft Lawsuit
The Palestinian Authority blamed Israeli authorities for car thefts in a legal defense against a 553 million shekel lawsuit filed by Phoenix Insurance. The court hearing is set for November.
The phenomenon of vehicle thefts from Israel to the Palestinian Authority will soon be addressed in Israeli courts. Following a lawsuit filed in January by Phoenix Insurance seeking approximately 553 million shekels from the Palestinian Authority for damages caused by vehicle thefts, a defense statement has recently been submitted. In its defense, the Palestinian Authority places the responsibility for failing to prevent car thefts squarely on Israeli law enforcement authorities.
The Palestinian Authority argued that all border crossings and checkpoints between Israel and the territories under its control are the exclusive responsibility of Israel, with not a single Palestinian police officer stationed at these checkpoints. According to the defense statement, vehicles are stolen from within sovereign Israeli territory without any involvement, knowledge, or notification by Israel to the Palestinian Authority. Consequently, the Authority claims that the failure and responsibility lie entirely with Israel, while reserving the right to issue a third-party notice against the state.
The Lawsuit and Expert Testimony
The Phoenix lawsuit was filed over insurance payouts disbursed for car thefts. The claim asserts that the Palestinian territories serve as a central hub for the theft industry, from which the Authority financially benefits while turning a blind eye. The lawsuit includes an expert opinion by former Israel Police Commissioner Roni Alsheich, who stated that vehicle theft from Israel into the Palestinian territories is a formalised, organized, and sophisticated industry.
The lawsuit asks the court to order the Palestinian Authority to pay the insurance company approximately 553 million shekels, representing total damages incurred between 2018 and 2025 due to the theft of 6,103 vehicles.
Palestinian Response and Cooperation
The Palestinian Authority counters that it previously maintained close security cooperation with Israel to combat the phenomenon, including a joint task force between the Israel Police and Palestinian police. However, it claims this cooperation was terminated years ago by the Israeli side. Furthermore, the Authority asserts that Israeli restrictions prevent it from operating in Area C, where most chop shops are located.
In response, Phoenix Insurance strongly rejected the defense claims, calling the filing evasive and arguing that it attempts to deflect from the direct and independent responsibility of the Palestinian Authority. A court hearing on the case is scheduled for late November.
