Court penalises agent for premium theft

A client paid $7,693 to the agent, which was later misappropriated.

A former licensed insurance agent has been sentenced to three months and two weeks in prison by the Magistrates’ Court, following a conviction for misappropriating a client’s insurance premium, warned the Hong Kong Insurance Authority (HKIA). 

The agent was also ordered to pay compensation equivalent to the misappropriated amount.

The case dates back to 2020 when the client paid $7,693 (HK$60,000) in cash to the agent for the renewal of an insurance policy. However, the agent misappropriated the funds, leading to the policy’s lapse in 2021. 

After the incident was reported to the Police and the HKIA, the agent was arrested and subsequently pleaded guilty to an offence under Section 9 of the Theft Ordinance (Cap. 210) on 22 April 2024.

The HKIA underscored the gravity of mishandling or misappropriating premium payments, emphasising that such breaches of trust have severe consequences. The HKIA also reminded policyholders to make payments through official channels provided by insurers to avoid similar incidents.

($1.00 = HK$7.80)