Postal employee suspected of collecting money for fake insurance policies

Employee allegedly collected premiums in lump sum to use as monthly insurance instalments

Postal employee suspected of collecting money for fake insurance policies

Insurance News

By Gabriel Olano

Chunghwa Post, Taiwan’s postal service that also offers insurance products, has said that it has caught an employee collecting money for single-premium insurance policies, which the company does not offer.

Since 2009, an employee surnamed Chang has allegedly collected insurance lump sum payments for insurance from around 300 customers for 800 policies.

An internal probe revealed that Chang had used the money to make monthly payments for insurance policies on behalf of his customers, the China Post reports.

Chunghwa Post spokeswoman Lan Shu-jhen revealed that Chang had already paid NTD200 million (US$6.6 million) in monthly instalments, and he still had NTD400 million (US$13.2 million) in payments yet to be made. An investigation is currently underway into Chang’s accounting to determine how much he benefited illegally from his collections.

At a press conference, Chunghwa Post apologised to its policyholders, saying that Chang’s actions were a serious violation of company policy. It also promised to send staff to the affected policyholders to explain the situation and provide a full refund of their money.

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