Financial Supervisory Service Issues 'Consumer Alert' on Auto Insurance Fraud
Resist the Covert Temptations of Brokers
Rewards Offered for Reporting Insurance Fraud
The Financial Supervisory Service issued a consumer alert (caution) on September 30, warning that there has been a recent increase in cases where hospitals and clinics attract traffic accident patients through brokers and admit them under false pretenses for minor accidents.
Broker A approached delivery worker B, who had been involved in a minor rear-end collision while making deliveries, and encouraged B to be admitted to C Korean Medicine Hospital under false pretenses. A tempted B by saying that admission could be arranged over the phone without a direct consultation with a doctor, and that being admitted would increase the settlement amount for personal injury. A also claimed that upon admission, B could receive Gongjindan, Gyeongokgo, or pre-prepared herbal medicine, which would help with physical recovery.
C Korean Medicine Hospital admitted B under false pretenses, even though there was no need for hospitalization, and falsified documents to make it appear as if B had not left the hospital or stayed out overnight. During the 14-day hospitalization, B left the hospital without permission and continued to work as a delivery person. Broker A received department store gift certificates (worth 50,000 won per patient), Gongjindan, and free treatment vouchers from C Korean Medicine Hospital as referral fees for bringing in patients.
Cases of insurance fraud related to car accidents disclosed by the Financial Supervisory Service on the 30th. Mr. B fabricated hospitalization documents and then worked as a delivery person. Financial Supervisory Service
Insurance company D learned of these facts through a tip-off regarding insurance fraud and reported A, B, and C Korean Medicine Hospital to investigative authorities on suspicion of insurance fraud and related charges.
The Financial Supervisory Service emphasized that consumers should firmly reject proposals from insurance fraud brokers who recommend unnecessary hospitalization for minor traffic accidents that can be treated on an outpatient basis. Being admitted to a hospital without a face-to-face consultation with a doctor, or receiving pre-prepared herbal medicine, can also involve you in insurance fraud. Hospitalized patients should be aware that leaving the hospital without permission to engage in delivery or taxi work can result in being reported for insurance fraud.
An official from the Financial Supervisory Service stated, "If you suspect false claims for insurance benefits, such as being encouraged to be hospitalized under false pretenses or manipulation of treatment records after a traffic accident, please actively report it to the insurance company or the Financial Supervisory Service." The official also warned, "The moment you comply with such a proposal, thinking 'it should be fine since the hospital told me to do it,' you could become involved in a serious crime-insurance fraud."
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