Financial authorities have decided to extend the special reporting period for insurance fraud, originally set to end this month, by seven months and expand the scope of reports to include auto insurance fraud alongside existing actual expense insurance fraud. As a result, individuals who report medical institutions or brokers involved in fraud related to actual expense or auto insurance by late October can receive a maximum reward of 50 million Korean won.
On the 24th, the Financial Supervisory Service (FSS) and the insurance industry announced that the deadline for the special reporting and reward period would be extended from the 31st of this month to the 31st of October. This adjustment aligns the reporting period with the police’s special crackdown on insurance fraud. Additionally, the scope of reports has been expanded from actual expense insurance to include auto insurance, targeting cases such as intentionally staged car accidents to claim insurance payouts.
Reports can be submitted to the FSS or insurance companies if medical institutions issue false diagnosis certificates to facilitate fraudulent claims under actual expense insurance or if brokers mediate such fraudulent activities. For auto insurance, key targets include traditional Korean medicine hospitals that keep patients hospitalized for extended periods without proper treatment, as well as repair and rental car companies that falsely claim costs for intentionally staged accidents.
Reporters must submit...
Financial authorities have decided to extend the special reporting period for insurance fraud, originally set to end this month, by seven months and expand the scope of reports to include auto ins...