Immediate Annuity Subscribers Win First Victory in Joint Lawsuit Against Insurers for Unpaid Amounts Returned

[Asia Economy Reporter Park Jihwan] Immediate annuity subscribers won their first victory in two years in a class action lawsuit against life insurance companies, claiming that insurance payments were underpaid.

The Financial Consumers Federation announced on the 10th that the first favorable ruling was made in the lawsuit demanding the return of unpaid immediate annuity funds.

According to the Federation, the Civil Division 3 of the Seoul Eastern District Court ruled in favor of the plaintiffs in the lawsuit filed by two Mirae Asset Life Insurance immediate annuity subscribers against the insurer for the return of unpaid funds.

In 2018, the Federation organized a class action lawsuit against life insurers including Samsung Life Insurance, alleging that they arbitrarily underpaid insurance benefits to immediate annuity subscribers. The insurers deducted maturity insurance payment resources without clearly stating this in the policy terms or properly informing subscribers, calculated the monthly annuity amount accordingly, and the Federation argued that the insurers should return the deducted amounts.

The Federation stated, "This ruling is the first time the plaintiffs have won in the immediate annuity class action lawsuit," urging life insurers to make voluntary payments.

Mirae Asset Life Insurance said it will thoroughly review the ruling before deciding whether to appeal.

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