One in 100 Life Insurance Cases Involves 'Claim Denial'

[Asia Economy Reporter Oh Hyung-gil] It has been reported that 1 out of every 100 life insurance claims did not receive the insurance payout.

The Financial Consumers Federation announced on the 16th that, after investigating the non-payment rate against the number of life insurance claims in the first half of last year, 6,569 out of 737,216 claims were not paid.

The companies with the highest non-payment rates were DGB Life, KDB Life, and NH Nonghyup Life, all at around 1.5%. They were followed by Orange Life, Heungkuk Life, and Samsung Life at around 1.2%.

Samsung Life had the highest number of unpaid claims with 1,444 out of 119,370 claims (1.21%), followed by LINA Life with 1,400 cases, Kyobo Life with 802 cases, and NH Life with 718 cases. Mirae Asset had only 46 unpaid claims out of 13,429 claims, accounting for just 0.34%.

The main reasons life insurers denied payouts were violations of the duty of disclosure at 51.6%, exemption clauses in the policy at 41.8%, contract invalidity at 5.3%, lawsuits and disputes at 0.9%, and insurance fraud at 0.1%.

Bae Hong, Director of the Insurance Department at the Financial Consumers Federation, said, "Insurance payout dissatisfaction is an objective indicator showing consumer satisfaction after filing claims, so consumers should be cautious when choosing companies with high denial rates."

This content was produced with the assistance of AI translation services.