Gov`t to toughen crackdown on insurance scams

By Shim Sun-ah
SEOUL, Jan. 22 (Yonhap) -- The government said Friday it will expand
investigations into fake insurance claims as such crimes have increased in recent
years amid an economic slowdown.
The government also decided to resume the operations of a joint team dedicated to
looking into insurance scams and insurance swindlers.
These moves are part of government measures jointly unveiled by Cabinet
ministries in a policy coordination meeting presided over by Prime Minister Chung
Un-chan.
The government launched the joint team of Seoul prosecutors, police offers and
tax and public insurance officials in June last year for a six-month operation to
stem insurance scams.
Police arrested 15,387 people on charges of making false insurance claims last
year, nearly three times the 2008 tally of 5,468. Among those accused were
transport business operators, medical doctors and accountants, according to
police tallies.
Under the measures, the team will expand the scope of investigation to include
insurance for covering workplace accidents, Chung's office said.
The Financial Supervisory Service, the nation's financial watchdog body, will
maintain an upgraded blacklist of hospitals and car repair shops which have been
involved in insurance frauds, to prevent repeated crimes, it said.
"Many people still have a weak sense of guilt about insurance fraud, with the
crime felt more akin to winning a lottery prize," Chung said. He instructed
officials to take thorough measures to promote the seriousness of insurance
crimes, his office said.
sshim@yna.co.kr
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