Insurance Attorney | Assisting a Client With a Wrongful Insurance Fraud Charge and Concluding the Matter With a Non-prosecution Decision

The Special Act on Prevention of Insurance Fraud is a law enacted to set forth matters concerning the investigation, prevention, and punishment of 🔗insurance fraud, so as to protect the rights and interests of policyholders, the insured, and other interested parties, and to contribute to the sound development of the insurance business and the promotion of public welfare.

If insurance proceeds are obtained through an act of insurance fraud, a person may be punished by imprisonment for not more than 10 years or a fine not exceeding 50 million won under the Special Act on Prevention of Insurance Fraud.

The insurance attorney emphasized that the client had not caused the traffic accident intentionally.

The insurance attorney argued that, while the sheer number of the client's accidents could give rise to a suspicion of insurance fraud, these were genuinely accidents that occurred through sheer misfortune.

At the time this incident occurred, the client believed that he was also at fault and considered the damage minor, so he left without filing an insurance claim.

However, the client and the other party had the same insurance company, and the other party's insurance adjuster assessed the ratio of fault between the other party and the client at 100 to 0. As a result, even though the client had not filed an insurance claim, the company automatically paid driver's insurance proceeds to the client.

The insurance attorney emphasized that the client had never even filed an insurance claim and that this was by no means an accident caused intentionally to defraud insurance proceeds.

The insurance attorney also submitted dashcam footage of the earlier accidents as evidence and argued that those accidents had likewise occurred through misfortune.

The insurance attorney argued that the client had no motive whatsoever to cause an accident intentionally in order to defraud insurance proceeds.

The client currently serves as a professor at a university.

The client's wife is also a high school teacher, and the client leads a financially very stable life.

The insurance attorney emphasized that the client, who leads a financially stable life and is recognized for his abilities in society, had no motive whatsoever to commit such a fraudulent act in order to defraud insurance proceeds.