As insurance subscription channels are extending from offline to online-insurance companies, TV home shopping, telemarketing and bankasurance, so is the number of relevant consumer damages.

 

Year	2003	2004	2005	Total
Number of Cases	124	86	123	333

 

Classification	Life Insurance		General Insurance		Total
	Number of Cases	%	Number of Cases	%	Number of Cases	%
Discreet agreements/changes	75	35.5	26	21.3	101	30.3
Contracts signed under fake names	32	15.2	22	18.0	54	16.2
Promising returns	34	16.1	5	4.1	39	11.7
Unfair insurance premium rates	1	0.5	32	26.2	33	9.9
Wrong description of insurance products	12	5.7	19	15.6	31	9.3
Embezzlement/inappropriate use of insurance premium	22	10.4	4	3.3	26	7.8
Signature of the insured missing	11	5.2	3	2.5	14	4.2
Unfulfillment of services (prizes)	6	2.8	2	1.6	8	2.4
Lending liaison services	4	1.9	-	0.0	4	1.2
Others	14	6.7	9	7.4	23	7.0
Total	211	100.0	122	100.0	333	100.0

 

 

-Discreetly determining the premium payment period

-Getting a consumer to terminate previous insurance contact and subscribe to another insurance product

-Failing to provide services (physical checkups) as promised

-Getting a consumer to sign an insurance contract that was discreetly drawn up

-Different maturity repayment and monthly interest rates applied than originally explained

 

Based on the above findings, KCPB plans on making a proposal to the Financial Supervisory Service (FSS) ▲to tighten subscription procedures ▲to obligate the description of contract terms by insurance companies and ▲to acquire legal status and establish management system related to insurance subscription.

 

Furthermore, KCPB reminded consumers ▲to refuse subscription requests if they don’t want to ▲to check with the insurance company on high interest rates or maturity repayment ▲to fill out insurance contracts in their own handwriting and signature and ▲to pay the insurance premium through automatic transfer service.