The amendment bill to the Special Act on Prevention of Insurance Fraud (the “Bill”), aimed at prohibiting acts such as mediating, soliciting, and advertising insurance fraud in an effort to more effectively respond to insurance fraud crimes, which are becoming better organized, more cleverly executed, and larger in scale, was passed in the Plenary Session of the National Assembly on January 25.
The Bill, which provides for punishment not only on those who directly engage in insurance fraud and commit crimes, but also on those who solicit or advertise insurance fraud, thereby strengthening the punishment compared to general fraud crimes. However, the final Bill does not include elements of the original Bill concerning aggravated punishment of the insurance industry people involved in the insurance fraud and the disclosure of a list of criminals upon final decision of insurance fraud. More details of the Bill are as follows:
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1. |
Prohibition and Punishment of Insurance Fraud Mediation or Advertising |
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2. |
Strengthening the Financial Authorities’ Authority to Investigate Insurance Fraud |
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3. |
Establishment of Criteria for Review of Adequacy of Hospitalization |
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4. |
Legalization of Remedies for Victims of Car Insurance Fraud |
The Bill will take effect six months after the date of promulgation.
