'Heavier Penalties for Insurance Workers Involved in Fraud'... Amendment to the Special Act on Prevention of Insurance Fraud Proposed

Assemblyman Kim Han-jung Establishes Basis for Sharing Information Between Public and Private Insurance

[Asia Economy Reporter Oh Hyung-gil] A bill to impose heavier penalties on insurance fraud involving insurance industry workers has been proposed.

On the 23rd, Kim Han-jung, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, introduced a revision bill to the Special Act on the Prevention of Insurance Fraud containing these provisions.

The amendment establishes a basis for information sharing between public insurance such as the National Health Insurance and private insurance companies for the efficient investigation of insurance fraud, and grants the Financial Services Commission the authority to request data from institutions related to insurance fraud.

It also requires insurance companies to strengthen their authority and responsibility in investigating insurance fraud by establishing dedicated organizations for insurance fraud and setting investigation procedures and standards for fraudulent acts. Additionally, if found guilty of insurance fraud, the insurance company may terminate the insurance contract related to the fraudulent act and claim the return of paid insurance benefits.

To protect the rights of policyholders, sanctions can be imposed on insurance companies that unjustly delay insurance payments or fail to promptly notify customers of refunds in cases where insurance premiums were unfairly increased due to automobile insurance fraud.

The bill prohibits solicitation of insurance fraud and imposes heavier penalties on insurance industry workers, medical professionals, and automobile management business operators who lead, conspire, or aid insurance fraud by abusing their professional positions or expertise.

Rep. Kim said, "Insurance fraud causes enormous damage not only to the majority of honest policyholders but also affects national finances due to leakage in the National Health Insurance. I hope that the effectiveness of insurance fraud investigations will be enhanced, reducing incentives for fraud and promoting consumer rights."

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