Financial supervision service, which strictly regulates the ‘institutional warning’ to Samsung Life … New business interruption expected

Input 2020.12.04 00:17

Samsung Life is in danger of “institutional warning” because it did not adequately pay the hospitalization fee for cancer insurance specified in the terms and conditions and unfairly argued the majority shareholder.

On March 3, the Financial Supervisory Service’s Sanctions Resolution Committee announced that it had decided to take action following the full inspection of Samsung Life Insurance. The measure included a recommendation to the Financial Services Commission to impose fines and penalties on Samsung Life Insurance and measures such as three-month salary cuts and employee reprimands.

On this day, the sanctions hearing was held for the second time since last month. Previously, on November 26, the sanctions trial discussed whether Samsung Life would sanction non-payment of hospitalization fees to a number of cancer patients as a breach of their obligation to comply with the insurance policy. base).

Samsung Life’s position is that admission to a nursing hospital cannot be seen as a “direct cancer treatment”. Samsung Life said it did not pay insurance for long-term nursing hospitalization not directly related to cancer treatment. For each patient, payment or non-payment was decided based on the treatment received at the nursing hospital and all nursing hospital admissions were considered cancer admissions and could not be decided as a lump sum payment.

The sanctions also included the fact that Samsung Life violated its obligation to limit transactions to major shareholders. It is that Samsung Life has not received compensation for the delay from Samsung SDS for not meeting the deadline for building the computer system. Under the Insurance Business Act, an insurance company must not provide, directly or indirectly, tangible or intangible assets of economic value to the principal shareholders (including particularly related persons) of the insurance company free of charge.

The Sanctions Review is an advisory body to the FSS and has no legal effect on the results of the review. Each subject to follow-up measures is finalized after approval by the FSS and a resolution by the Financial Services Commission. If the warning institutional sanctions are finalized, Samsung Life will not be able to enter new businesses that require the approval of financial authorities for the next year. Samsung Card, which is Samsung Life’s largest shareholder, also faces a setback in obtaining authorization for its credit information management business (My Data).