26 August 2024
The Insurance Authority (IA) draws public attention on a recent conviction handed down by the Magistrates’ Court that involves a former licensed insurance agent being sentenced to imprisonment for three months and two weeks as well as ordered to pay compensation equivalent to the misappropriated premium.
A client purchased an insurance policy from the agent in 2020 and passed HK$60,000 to the agent in cash for settling the renewal premiums, which was misappropriated and caused the policy to lapse in 2021. After a report was made to the Police and the IA, the agent was arrested and pleaded guilty for an offence under Section 9 of the Theft Ordinance (Cap. 210) on 22 April 2024.
Mishandling or misappropriating premium payments is a serious breach of trust and an unforgivable act of duplicity. We remind all industry practitioners that committing an offence of this nature will lead to dire consequences and urge policy holders to pay their premiums through official channels provided by the insurer.
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