Guidelines from the Financial Supervisory Service
on Precautions for Mobile Insurance Subscription
Office worker Mr. Oh was persuaded by an insurance agent who promised to compare and analyze good insurance products, and he provided the authentication code received on his mobile phone. Later, Mr. Oh found out that his existing insurance had been canceled and an insurance contract he did not agree to had been concluded without his handwritten signature. He requested the cancellation of the insurance contract unfairly signed by the insurance agent and the reinstatement of the existing insurance contract. The Financial Supervisory Service confirmed that the subscription was conducted without meeting the contract holder in person and instructed the insurance company to comply with the complainant's request.
On the 20th, the Financial Supervisory Service provided guidance on complaint cases and precautions related to mobile insurance subscriptions.
Mobile subscription is a method of applying for insurance by accessing an internet address sent to the contract holder’s mobile phone. After the initial electronic signature, repeated signatures are replaced by clicks, allowing for easy subscription. However, the contract holder must meet the insurance agent in person to hear important details about the insurance product and receive guidance on matters to be notified at each subscription stage, and personally proceed with the subscription process. If the guidance text message, internet address, or authentication code for the insurance subscription is shared with the insurance agent, it may be misused to conclude an insurance contract without the contract holder’s consent, so caution is required.
Mr. Min saw an advertisement on a smartphone application promising coverage of 800,000 KRW for prosthetic treatment and subscribed to dental insurance via mobile subscription. However, after subscribing, he found that the actual coverage amount was 500,000 KRW, which differed from the advertisement. The advertisement Mr. Min saw was for the 'General Plan,' but he had selected the 'Basic Plan' during the actual insurance subscription process. Mr. Min filed a complaint claiming insufficient product explanation by the insurance company, but it was not accepted because the insurance premium and coverage details of the plan he selected were provided on the mobile subscription screen.
In mobile subscriptions, insurance products are often plan-type products (such as General, Premium, Basic) pre-set by the insurance company with selectable types of coverage and coverage limits. If the contract holder selects a product type without checking whether the necessary coverage is included or if the coverage amount is sufficient, they may not receive compensation or the coverage amount may be insufficient in the event of an actual insurance claim.
Mr. Noh mistakenly entered the wrong phone number to receive insurance expiration notifications when subscribing to direct automobile insurance. Later, Mr. Noh was fined for not having mandatory insurance. He demanded compensation from the insurance company, claiming they did not properly inform him, but his request was denied because it was confirmed that the contract holder had entered the wrong phone number and did not receive the notification message.
When subscribing to insurance via mobile, the personal information entered by the contract holder affects the insurance company’s liability for compensation and the delivery of important notifications. Therefore, care must be taken when entering personal information. If the contract holder enters personal information such as phone number and date of birth incorrectly, the insurance company does not separately verify the authenticity of the information, so caution is necessary.
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