Punishment for Recruiting Insurance Fraud... Insurance Fraud Prevention Special Act Passes Judiciary Committee
The amendment to the Special Act on the Prevention of Insurance Fraud has passed the National Assembly's Legislation and Judiciary Committee (Law Committee).
On the afternoon of the 24th, the Law Committee held a plenary meeting to review the agenda and passed the amendment to the Special Act on the Prevention of Insurance Fraud.
The amendment focuses on △prohibiting the solicitation and recommendation of insurance fraud △granting the Financial Services Commission the right to request data △establishing criteria for reviewing the appropriateness of hospitalization △requiring disclosure of damage facts such as premium surcharges for victims of intentional accidents △strengthening punishments including combined imprisonment and fines for insurance fraud, and filling blind spots.
While insurance fraud has become more sophisticated, the Special Act on the Prevention of Insurance Fraud has not been amended since its enactment in 2016, leading to ongoing controversies over blind spots.
Accordingly, the amount detected for insurance fraud in 2022 steadily increased by 14.7% compared to the previous year, reaching 1.0818 trillion won.
With this legal amendment, grounds for punishment have been established for those involved in soliciting, recommending, or advertising insurance fraud. Previously, there was no prohibition clause on solicitation or recommendation related to insurance fraud, so even if such acts were detected, they could only be treated as accomplices.
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On the other hand, the 'enhanced punishment for insurance industry personnel,' considered one of the key provisions, was excluded. This was due to concerns about fairness in enhanced punishment raised during the Law Committee's agenda review held on the 8th. Insurance industry personnel include not only insurance company executives and employees but also insurance planners, loss adjusters, medical institution workers, and automobile repair shops.
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