Supreme Court: "Housewife who took out dozens of insurance policies and pocketed 500 million KRW acted with improper intent... must return insurance money"

[Asia Economy Reporter Kim Hyung-min] The Supreme Court ruled that a housewife who repeatedly admitted and discharged herself unnecessarily while holding dozens of insurance policies and collected about 500 million won in insurance money must return the insurance money, stating that "the purpose of taking out insurance was improper."

The Supreme Court's First Division (Presiding Justice Kwon Soon-il) announced on the 1st that it overturned the lower court's ruling, which dismissed the lawsuit filed by Hanwha General Insurance against housewife A for the return of unjust enrichment, and sent the case back to the Changwon District Court.

The court stated, "Considering A's occupation, assets, and circumstances before and after signing the insurance contracts, it cannot be seen that A entered into the insurance contracts purely to prepare for accidental risks to life or body. Rather, there is sufficient reason to believe that A had the purpose of fraudulently obtaining insurance money by taking out multiple insurance contracts and feigning insurance accidents. The lower court's ruling failed to conduct the necessary examination."

From 2005 to 2016, A signed 36 insurance contracts with 15 insurance companies, including Hanwha General Insurance. The monthly insurance premiums amounted to 1.53 million won.

Among these, in November 2009, A signed an insurance contract with Hanwha General Insurance that paid 30,000 won immediately upon hospitalization, and from December 2013 to May 2016, she was admitted and discharged 20 times, receiving 24.39 million won in insurance money. At the time of admission and discharge, the diagnosed illnesses were esophagitis, gastric ulcers, and other conditions that could be sufficiently treated with short-term outpatient care. A collected a total of about 530 million won in insurance premiums in this manner.

Among the insurance companies from which A collected insurance money, Hanwha General Insurance took the lead in filing a lawsuit demanding the return of the insurance money. Hanwha General Insurance argued that "A's actions violate good morals and other social order in insurance contracts, and all insurance contracts with A are invalid," and claimed that the 24.39 million won paid to A must be returned.

The first trial court rejected Hanwha General Insurance's claim due to lack of evidence.

The second trial court also ruled against the plaintiff, stating, "The evidence submitted by the insurance company alone is insufficient to recognize that A had the purpose of fraudulently obtaining insurance money."