FSC extends ‘suicide cause’ to combat fraudKorea’s financial regulators are stepping up their efforts to tamp down insurance fraud by extending to three years an exclusion clause for people who take their own lives, the Financial Services Commission (FSC) said yesterday.
At present, insurance policies are not valid if the holder takes their own life within two years of signing up. The one-year extension will further block families of the bereaved from attempting to cash in their dead relative’s claim, the FSC said.
Japan extended its exclusion period by the same degree in 2004, said Jeong Ji-won, an official at the FSC. Seoul has kept the deadline at two years since 1979, when it moved it up from one year.
“After examining the cases of other countries and collecting public opinion, we will also look into the prospect of allowing insurers to avoid making insurance payouts, even when subscribers commit suicide after the exclusion period,” he added.
The FSC expects the measure to lower the number of financially motivated suicides in the country. One of its studies showed that the suicide rate is significantly higher among its policy holders within the first two years of them becoming its clients than among longer-serving clients.
By Kim Mi-ju [email@example.com]
More in Finance
CU gets into the foreign exchange transaction business
Kospi hits another record high despite Covid spike
5-day winning streak ends as Kospi drops 0.62 percent
Debt is the latest hot product being pushed into the market
China's WeChat Pay and Seoul's Zero Pay now interoperable