For Cancer Patients Treated at Nursing Hospitals
The Financial Services Commission (FSC) has decided to slap a fine of 155 million won on Samsung Life Insurance for violating the Insurance Business Act.
In the past, Samsung Life Insurance refused to pay for cancer hospitalization insurance uniformly, arguing that cancer patients' admission to a nursing hospital did not fall under "direct cancer treatment."
The FSC's decision came one year and two months after the Financial Supervisory Service (FSS) issued a warning to Samsung Life Insurance in December 2020 for its refusal to pay for cancer insurance to patients who are treated at a nursing hospital.
The FSS and FSC judged that the life insurer's practice constituted a violation of the Insurance Business Act.
The FSC's action will restrict Samsung Life Insurance from entering new businesses that require financial authorities’ approval over the next one-year period. This will make it difficult for Samsung Life to promote its digitalization strategy.
Samsung Card and Samsung Asset Management, major affiliates of Samsung Life Insurance, will also be subject to the same restrictions.
Earlier, the FSC suspended its review of a MyData business license application from Samsung Card as the eligibility of its major shareholder is called into question.