Deals & Cases

Violation of the Special Act on Prevention of Insurance Fraud
Violation of the Special Act on Prevention of Insurance FraudNon-referral (police)

Insurance Fraud Lawyer Assistance Case | Client Charged With Insurance Fraud, Non-referral

The insurance fraud attorney was approached by a client who, upon becoming subject to a police investigation on suspicion of insurance proceeds fraud, sought out an attorney with extensive experience in insurance fraud cases for legal assistance.

1. The Client Who Came to an Insurance Fraud Lawyer

Daeryun insurance fraud attorney insurance fraud police investigation assistance

The client, who sought out an insurance fraud attorney, needed legal assistance ahead of a police investigation on charges of insurance fraud related to automobile insurance, and through the attorney’s assistance received a non-referral decision.

The Client Charged With Insurance Fraud

This is the background of the case as understood by the insurance fraud attorney.

The client, who operated an orthopedic clinic, often performed surgery on or treated patients from traffic accidents.

Because insurance proceeds for automobile accidents are paid afterward, it sometimes happened that a receipt was issued first and the patient paid the treatment costs after receiving the insurance proceeds.

However, one day the insurance company reported the client to the police, claiming that the client's conduct violated the Special Act on Prevention of Insurance Fraud.

Feeling that this was unjust, the client sought out an insurance fraud attorney and requested help in order to defend against punishment with legal assistance.

2. Insurance Fraud Explained by an Insurance Fraud Lawyer

Daeryun insurance fraud attorney, defense leading to non-referral of an insurance fraud charge

The client who came to the insurance fraud attorney was suspected of 🔗insurance fraud.

Insurance fraud refers to conduct in which a person falsely reports the occurrence and circumstances of an insured event and claims insurance proceeds, which is recognized as fraud.

If insurance fraud is found, the person may receive heavier punishment than for ordinary fraud, as a violation of the Special Act on Prevention of Insurance Fraud.

The statutory provisions on the punishment of insurance fraud are as follows.

Special Act on Prevention of Insurance Fraud Article 8 (Insurance Fraud)

(1) A person falling under any of the following shall be punished by imprisonment for up to 10 years or a fine of up to 50 million won.
1. A person who, through an act of insurance fraud, acquires insurance proceeds or causes a third party to acquire insurance proceeds

One should note that, if a person is found to have committed the act as a habitual offender of insurance fraud, the punishment may be aggravated by up to one half of the sentence.

What Are the Types of Insurance Fraud?

In the client's case, the issuance of receipts before treatment or surgery was performed gave rise to a suspicion that an insurance accident had been disguised.

Beyond this, there are certain types of conduct classified as insurance fraud.

Representative Types of Insurance Fraud


▶ Conclusion of a fraudulent insurance contract

▶ Intentional causation of an insured event

▶ Disguising and fabricating an insured event

▶ Exaggeration of an insured event

To accurately determine whether such an insured event is established, it can be advisable to seek advice from an attorney with experience and expertise in the relevant field.

3. The Insurance Fraud Lawyer's Assistance

The insurance fraud attorney conducted a legal analysis of the elements of insurance fraud and gathered evidence showing that the client's conduct did not amount to staging an insured event, then presented the defense.

Insurance Fraud Defense Strategy (1): Issuing a Receipt Is Not Insurance Fraud

According to the Special Act on Prevention of Insurance Fraud, disguising or fabricating an insured event itself is regarded as insurance fraud.

However, the act of issuing the receipt first had no direct causal relationship with the insured event, that is, the injury caused by the car accident.

The attorney emphasized that it was difficult for the client's charge to be established, on the ground that there was no actual connection between the insured event and the act of issuing the receipt.

Insurance Fraud Defense Strategy (2): There Was No Intent to Deceive

One of the important elements for establishing fraud, including insurance fraud, is that there must be an intentional act of deception and resulting financial loss.

Because the client had merely provided treatment in good faith, it was difficult to establish any act of deception at all.

The attorney, relying on the relevant statutes and other grounds, emphasized that merely issuing the receipt first could hardly be interpreted as deception.

Insurance Fraud Defense Strategy (3): There Was No False Medical Treatment

The client had only issued a receipt in advance and had never provided false treatment or issued a false medical certificate.

This also did not in any way correspond to disguising or fabricating an insured event.

The attorney emphasized that, because the client did not engage in any false treatment, insurance fraud was not established at all.

4. Result of the Insurance Fraud Lawyer's Assistance: “Non-referral”

Daeryun insurance fraud attorney, evidence collection and defense for violation of the Insurance Fraud Prevention Act

Accepting the insurance fraud attorney's arguments, the police issued a non-referral decision, finding that no crime was established.

If You Are Involved in Insurance Fraud

This was a case in which a client who had been reported by an insurance company and become involved in a charge of the crime of fraud successfully defended against punishment by obtaining a non-referral decision through the help of an attorney.

As such, in insurance fraud cases, one must combine deep expertise in the relevant laws with knowledge of related fields such as medicine, so the help of a specialist attorney is important.

At Daeryun Law Firm, based on expertise in criminal law, we operate an all-around response system by forming task forces with experts in fields related to the case.

In particular, numerous insurance specialist attorneys are affiliated with the firm, and we also have attorneys who have handled numerous insurance fraud cases.

If you are experiencing a similar problem, we hope you will seek help at any time through a 🔗legal consultation reservation.

보험사기변호사

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
Unauthorized reproduction, copying or distribution may result in legal action under applicable laws.

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