Insurance Companies Establish Measures to Prevent 'Abuse of Litigation Targeting Minors'
[Asia Economy Reporter Oh Hyung-gil] Institutional measures will be established to prevent insurance companies from abusing lawsuits against minors or cases where the statute of limitations has expired.
The Financial Services Commission announced on the 8th that the Litigation Management Committee, which reviews whether to file lawsuits against consumers, will expand its review to include subrogation lawsuits against vulnerable groups such as minors and subrogation lawsuits on claims past the statute of limitations.
After the committee's review, when making the final decision on whether to file a lawsuit, approval from executives or higher and consultation with compliance officers will be required to ensure sufficient prior examination of the appropriateness of filing the lawsuit.
Additionally, the Insurance Association's website will expand the scope of comparison and disclosure related to lawsuits to include the number of Litigation Management Committee meetings, the number of cases reviewed, and the review results (number of approvals, disapprovals, and disapproval rates).
The insurance industry has also agreed to share internal consumer protection control measures such as debt reduction and lawsuit deferral for vulnerable groups, which some insurers operate independently, and to strengthen their own efforts to protect vulnerable groups through debt reduction, prohibition of statute extension lawsuits, and debt forgiveness on claims with expired statutes of limitations.
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A financial authority official stated, "We will discuss and promote revisions to individual insurers' internal regulations within this year to expand the scope of the Litigation Management Committee's review and strengthen protection measures for vulnerable groups," adding, "The expansion of comparison and disclosure of lawsuit status will be pursued through revisions to insurance business supervision regulations, enforcement rules, and association disclosure regulations in the first half of next year."
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