A man in Taipei has been sentenced to two years in prison after he intentionally inflicted frostbite on his legs with dry ice in an attempt to claim NT$41 million in insurance benefits.
The case, which involved coordination with a former schoolmate and multiple insurance providers, has raised new questions about claim validation processes and risk management oversight in Taiwan’s insurance market.
According to the Taiwan High Court, the man – surnamed Zhang – conspired with a former classmate – surnamed Liao – to fabricate an accident that would qualify for a substantial payout under several insurance policies.
Zhang had accumulated health, accident, life, long-term care, and travel policies from five insurers between 2003 and 2023.
In January 2023, the two individuals purchased dry ice in New Taipei City and brought it to Liao’s residence in Taipei.
Zhang then placed his feet into a container filled with dry ice while Liao secured him with plastic restraints to ensure prolonged exposure.
The exposure lasted from approximately 2am to midday, during which time Liao documented the act using video and photographs.
Zhang sought emergency medical care two days later at Mackay Memorial Hospital, where doctors diagnosed him with severe frostbite, tissue necrosis, and infection-related complications.
The damage led to the surgical amputation of both legs below the knee.
According to the Indian Express, Zhang and Liao submitted insurance claims stating the injuries had occurred during a late-night motorcycle ride in cold weather.
One of the five insurers disbursed a payment of NT$236,427 before discrepancies in the account led to further investigation.
The remaining companies rejected the claims and reported the incident to law enforcement.
Following a police investigation, prosecutors charged both men with insurance fraud and deliberate self-injury resulting in permanent harm.
The High Court handed down sentences on June 20, assigning a two-year term to Zhang and six years to Liao, whom the court identified as the principal architect of the scheme.
The case has emerged at a time when Taiwan’s insurance market is showing uneven performance.
Insurance Bureau data for the January to May 2025 period indicates a total pre-tax loss of NT$49.5 billion across the industry.
Life insurers recorded a collective pre-tax loss of NT$61.7 billion, down 137.6% from the same period last year.
Conversely, the non-life sector posted NT$12.2 billion in pre-tax profits, a modest 2.4% decline year over year.
The New Taiwan dollar’s appreciation – up 9.53% against the US dollar since late 2024 – has affected investment returns and capital positions, particularly for life insurers with foreign assets.
The foreign exchange valuation reserve declined by NT$200.8 billion, closing at NT$18.8 billion, of which NT$63.9 billion was attributed to a one-time reserve adjustment.
Total foreign exchange-related losses reached NT$263.8 billion.
