FSC slaps KR₩155m fine to Samsung Life over unpaid insurance claims

FSC found the insurance firm in violation of the Insurance Business Act.

Korea’s Financial Services Commission has fined Samsung Life Insurance KR₩155m ($130k) for unfairly refusing to pay a subset of cancer insurance claims.

According to FSC, they found Samsung Life guilty in violating the Insurance Business Act for rejecting a number of claims for cancer hospitalisation, arguing instead that it did not fall directly under its ‘direct cancer treatment’ policy.

This decision comes a year and two months after the Financial Supervisory Service issued a warning to Samsung Life in December 2020 for refusing to pay for cancer insurance to patients treated at a nursing hospital

Aside from the fine, FSC will also restrict Samsung Life from entering new businesses that will require their approval for the next year.