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China Life gets penalty for employee fraud – SHINE

China Life gets penalty for employee fraud

Imaginechina

Administrative penalties have been imposed on the Nenjiang Branch of China Life Insurance Co and the top industry regulator vows to further crack down irregularities in life insurance sector.

Recently, a video went viral on Sina Weibo as a  woman surnamed Zhang reported in her real name that the managing director of Nenjiang Branch, Heilongjiang Province of China Life Insurance, where she has worked for 16 years, is suspected of premium fraud.

China Banking and Insurance Regulatory Commission said in a media press notice that it has attached great importance to the incident and has asked the Heilongjiang office of CBIRC to set up a special working group to make investigations.

In view of the problems reported by the informants, Heihe Branch of Heilongjiang Bureau of CBIRC has verified relevant violations of laws and regulations and imposed administrative penalties on the malpractice.

Next, the Heilongjiang office will comprehensively investigate the related businesses of China Life in the area, and severely deal with the relevant institutions and responsible persons according to the verified situation, according to the notice.

At the same time, the China Banking and Insurance Regulatory Commission has instructed China Life to conduct a comprehensive self-examination, increase accountability and effectively protect the legitimate rights and interests of consumers and its employees.

At present, China Life has “made specific arrangements” and is stepping up relevant work, the top industry regulator noted.

A similar report also aroused the public attention, with a former employee of Ping An Life Insurance anonymously accusing that office staff and agents at one of its branch colluded with each other and developed the agent team in the form of pyramid schemes.

Following the report, Ping An Life said they had already dismissed relevant responsible persons.

In December, the State Council unveiled measures to promote the steady development of the life insurance industry and CBIRC said it will further deepen reform, strengthen supervision and resolutely rectify market chaos.

 Last year, the watchdog punished 3,178 banking and insurance institutions as well as 4,554 responsible persons, with a total penalty of 2.27 billion yuan (US$350.7 million). 

Source: Google | Insurance News

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