South Korea’s financial watchdog has ramped up pressure on local life insurers to pay contracted money to the families of policyholders who commit suicide, but insurance companies are weighing taking the case to court, industry sources said Tuesday.
More than 10 life insurers were ordered by the Financial Supervisory Service to pay the insurance money in arrears by the end of the month, according to the sources.
The insurers had sold policies for accidents that cover disaster-caused deaths as well as suicides between 2003 and 2010 before it changed the terms of the policies to exclude suicide.
Under the previous contract terms, the families of policyholders who committed suicide would receive far higher accidental death benefits than payments from general death. (Yonhap)
