| Samsung Life Sanctions Contents / Source = Financial Supervisory Service |
Samsung Life Insurance was sanctioned by the Financial Supervisory Service for not paying insurance money unfairly and terminating insurance contracts.
According to the sanctions plan released by the Financial Supervisory Service on the 12th, Samsung Life was fined 228 million won and 149 million won in fines along with an institutional warning. At the same time, dispositions such as salary reductions and reprimands were imposed on nine Samsung Life employees.
The Financial Supervisory Service (FSS) said that as a result of the inspection, Samsung Life had found non-payment of insurance money, unfair termination of insurance contracts, unfair job exemption from premium payment, delayed payment of insurance payments, and violation of the obligation to secure the safety of electronic financial transactions.
According to the Financial Supervisory Service, Samsung Life did not unfairly pay inpatient insurance for cancer patients who were hospitalized in a nursing hospital from January 2015 to June 2019 without complying with the insurance terms and conditions. The insurance policy states, ‘The company interprets the insurance policy fairly in accordance with the principle of good faith, and pays the contracted cancer hospitalization insurance money when the insured person is diagnosed with cancer and is hospitalized for more than 4 days for the direct purpose of cancer treatment. It was supposed to be done, but it was not followed.
In order to prove that the beneficiary has a cause for payment of insurance money, the FSS submitted the insurance accident certificate, such as a cancer diagnosis certificate and cancer hospitalization certificate, which are required documents when claiming insurance money specified in the insurance policy, and made a claim in accordance with the insurance policy. He explained that the insurance money was not paid without objective and reasonable grounds for the case.
In addition, Samsung Life Insurance was found to have underpaid insurance premiums, such as reducing insurance premiums despite the doctor’s opinion that the insured’s traumatic disc herniation had a causal relationship to the accident. Even if an injury and disease are co-factors or there is a history of medical history, the insurance premium should be paid but underpaid. .
From April 2015 to May 2019, there were also cases where insurance contracts were canceled even though they did not fall under the reasons for termination under the insurance policy. According to the Financial Supervisory Service, Samsung Life has canceled a number of insurance contracts that cannot be canceled due to a breach of the pre-contract notice because no cause for payment of insurance money has occurred for two years from the date of initiation of the insurance policy, according to the Financial Supervisory Service.
In addition, when the disability payment rate is 50% or higher, or when a diagnosis of cancer is confirmed, insurance premiums are exempted from payment of insurance premiums. There were also cases where payment was delayed up to 110 business days.
In addition, the Financial Supervisory Service (FSS) reported that Samsung Life provided false information to the Korea Credit Information Service regarding the number of hospitalization days, sickness and accident insurance payments, insurance claims collection, injury benefits, and disability claims for policyholders from June 2017 to October 2019. We uncovered a number of cases where registrations or omissions were made.
The FSS also found that Samsung Life did not physically separate the information processing system inside the computer room from the server on the external Internet, and imposed sanctions for ‘violation of the obligation to secure the safety of electronic financial transactions’.
Yoo Ji-seung, reporter for Money Today Broadcasting MTN
