Insurers Have Authority to Reject Application Before Policy Issued: FSC 防疫險拒重複保? 金管會:核保階段有權拒保

Insurance companies are tightening regulations for claiming disease prevention compensation, which has led to numerous disputes and complaints.

Kuo Kuo-wen, Legislator (DPP): “The Financial Supervisory Commission's explanation makes you think they're throwing the game.”

Claims for disease prevention insurance compensation have surged since the epidemic began wreaking havoc across Taiwan, along with the controversies surrounding double, or even multiple insurances. The Financial Supervisory Commission's Insurance Bureau said insurance companies have the authority to reject an application before the policy is issued.

Chen Ching-yuan, Director, Non-Life Insurance Supervision Div., IB: “We respect the choice of companies to issue two insurance policies based on their overall risk appetite.”

Fubon Insurance was the first to stipulate that it would not pay out to people with multiple policies, and many insurance companies have followed suit. Cathay Century Insurance's website has an explanation on how claims are processed. It said it has made conditions stricter as the number of policy applications has exceeded its risk appetite capacity, and the limit is one policy. However, there are cases when companies have refused to insure people who have already paid premiums and are only waiting for a guarantee slip and have refunded them.

Chen Ching-yuan, Director, Non-Life Insurance Supervision Div., IB: “If there are individual disputes, then we will ask the policyholder to file a complaint or mediate. There will be so-called emergency relief in the follow-up.”

Legislators have received complaints from parents who had to stay home with their quarantining children after their classmates tested positive. The FSC believes these parents are "voluntarily quarantining" and are not eligible to apply for claims. The Centers for Disease Control says home quarantine notices are administrative sanctions and not quarantine certificates.

Lin Chiung-fang, Section Director, Acute Infectious Diseases Div., CDC: “Those who need to be administratively sanctioned are given a written certificate. In principle, it's the result of disease prevention investigations or risk assessments.”

Chen Ching-yuan, Director, Non-Life Insurance Supervision Div., IB: “If policies are opened (legally), then insurance companies will of course have to settle claims based on contracts.”

The FSC says it has met with insurance companies to make sure they know what documents are needed to process disease prevention insurance claims and that there is consistency. The Non-Life Insurance Association is expected to publish an explanation soon.