The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Fri, July 1, 2022 | 01:40
Economy
Nine life insurers reject FSS's order to pay suicide insurance
Posted : 2014-10-01 17:19
Updated : 2014-10-01 19:59
Print Preview
Font Size Up
Font Size Down
By Chung Ah-young

Nine life insurers, including Kyobo and Hanwha Life Insurance, have rejected the financial regulator's order to pay insurance money to beneficiaries of policyholders who committed suicide, sources said Wednesday.

Instead, they will likely bring the case to court to find out if they are obligated to pay the money.

The Financial Supervisory Service (FSS) sent an official notice last month to 12 life insurers to settle complaints filed by survivors of policyholders who killed themselves, demanding accidental death benefits, by Sept. 30. Their estimated payments amount to a combined 200 billion won.

Only two insurers ― Hyundai Life and Ace Life Insurance ― submitted a report to the FSS that they will pay the insurance money. Their payouts amount to a combined 170 million won, which is relatively low compared to the other insurers.

Samsung Life Insurance said that it will decide what it will do after the court hands down a ruling on the ongoing lawsuit filed by a customer in August.

Nine others ― Kyobo, Hanwha, ING, Tongyang, Dongbu, Allianz, Nonghyup, Met Life, Shinhan Life Insurance ― will bring the case to court to find out whether or not they are obliged to pay the insurance.

"We are considering a lawsuit against the customers who filed complaints demanding accidental death payouts to beneficiaries of policyholders who committed suicide. We need to see how the court will rule on the case as it is very sensitive," an official of a life insurer said.

He said that given the staggering amount of the payments, life insurers might suffer severe financial damage if they follow the FSS ruling.

The watchdog decided in August to sanction ING Life Insurance for failing to pay some 56 billion won in accidental death benefits for survivors of policyholders who killed themselves from 2003 to 2010.

Most life insurers paid general death benefits to the families of the suicide victims, as the amount for general deaths is half that for accidental deaths.

However, the contract's clause stipulates that insurers should pay accidental death benefits for suicides if more than two years have passed after the issuance of the policy.

The FSS received some 40 complaints asking for the insurance payments, citing the ING Life case. That clause was eliminated through a 2010 revision, but the regulator says that the insurers should take responsibility for policies issued before the revision.

The insurance companies argue that suicides are not accidental deaths and thus they have no obligation to pay insurance money for suicides because the accidental-death provision was "mistakenly stipulated."

The insurers claimed that if they pay more for suicides, it might encourage people to kill themselves as Korea has had the highest suicide rate among OECD member nations for years.

According to data submitted to Rep. Kim Gi-juhn, a lawmaker of the New Politics Alliance for Democracy (NPAD), ING Life Insurance holds the largest amount of unpaid insurance money with 65.3 billion won, followed by Samsung Life Insurance with 56 billion won, Kyobo Life Insurance with 22 billion won and Allianz Life Insurance with 15 billion won. Hanwha Life Insurance failed to pay 7.3 billion won.

The FSS is planning to expand its special inspection on other life insurers which used
the same clause.

The Supreme Court ruled that insurers should pay the insurance money in accordance with the contract terms even though the provision was wrongly stated in 2007.


Emailchungay@koreatimes.co.kr Article ListMore articles by this reporter
 
LG
LG
  • Will Japanese PM Kishida accept Yoon's olive branch?
  • Minimum wage for next year increased 5% to 9,620 won
  • Major expressway in Seoul closed off due to heavy downpours
  • Hole-in-one golf insurance policy exploited by fraudsters
  • Heavy downpour hits central regions [PHOTOS]
  • 'Tangible outcome' in arms deal with Poland expected soon
  • Jill Biden advises first lady Kim: "Just be yourself"
  • Samsung chief's daughter to attend Colorado College in fall
  • LG, Hanwha, LS eye EV charging biz for future growth
  • [INTERVIEW] 'New order takes root in fashion e-commerce industry'
  • [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake
  • 'Money Heist: Korea' ranks No. 2 on global Netflix chart 'Money Heist: Korea' ranks No. 2 on global Netflix chart
  • [INTERVIEW] Park Chan-wook says 'Decision to Leave' is sexy without sex scenes [INTERVIEW] Park Chan-wook says 'Decision to Leave' is sexy without sex scenes
  • Korean studies struggle to grow despite success of K-pop, K-dramas Korean studies struggle to grow despite success of K-pop, K-dramas
  • Frieze Seoul unveils list of galleries, programs for upcoming inaugural edition Frieze Seoul unveils list of galleries, programs for upcoming inaugural edition
DARKROOM
  • Afghanistan earthquake killed more than 1,000 [PHOTOS]

    Afghanistan earthquake killed more than 1,000 [PHOTOS]

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group