In the future, insurance companies must notify victims of automobile insurance fraud about the refund of their surcharged premiums within 15 business days. The financial authorities will have more resources to request from related agencies for investigations into insurance fraud.
The financial authorities noted on the 24th that they have decided to adopt regulations and implementation guidelines to prevent insurance fraud during a regular meeting of the Financial Services Commission and that these will take effect immediately.
According to the new regulations, insurers must notify victims of insurance fraud about the refund of surcharged premiums within 15 business days, and if unable to notify, must post the information on their website for more than 30 days. If the victim's address changes, this must be verified through the Ministry of the Interior and Safety, and a re-notification must be made.
The Financial Supervisory Service will receive monthly reports on the refund status from insurers and will oversee the prompt and accurate compensation for victims of automobile insurance fraud.
Insurers must confirm the facts of insurance fraud suffered by automobile insurance fraud victims through the court's definitive verdict and the prosecutor's non-indictment notice, and must notify the Korea Insurance Development Institute of this.
The authority for the financial authorities to request information for insurance fraud investigations will also be strengthened. The financial authorities can request the Health Insurance Review and Assessment Service to provide information on the opening and closing dates of medical facilities, staff, and other status data to enhance investigations into insurance fraud related to medical institutions. They can also request the Ministry of Land, Infrastructure and Transport for automobile registration documents for investigations into fraudulent vehicle theft reports. The report format for suspected insurance fraud by insurers has also been standardized.