Ex-Insurance agent charged by ICAC admits fraud over inflated premium
2022-10-10
A former insurance agent, charged by the ICAC, today (October 10) admitted at the Eastern Magistrates’ Courts he had conspired with another person to deceive a button manufacturer into renewing its products liability insurance policy on several occasions at inflated annual premiums involving a total of about $240,000.
Luk Kam-wai, 61, former insurance agent of AIG Insurance Hong Kong Limited (AIG), pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. The prosecution offered no evidence to three other similar charges against him.
Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to December 29 for mention and the defendant was granted bail.
At the material time, the defendant was the handling agent of a products liability insurance policy taken out by Dmark Metal Button Company Limited (Dmark) with AIG. According to the policy of AIG, the defendant was allowed to collect premium payments from Dmark on behalf of AIG, deduct his entitled commissions, and return the remaining sum to the insurer.
The court heard that on three occasions between October 2013 and November 2018, AIG issued renewal quotations to the defendant in respect of Dmark’s policy. On each occasion, the defendant issued an invoice with premium amount of about $79,000 to Dmark. During the period, Dmark paid a total of about $240,000 to a company of Luk as premiums for renewing the insurance policy.
The defendant admitted that he had overstated the premiums by a total of about $88,000. Had Dmark known the overstatements, it would not have approved the premium payments.
The then co-owner of Dmark, Leung Kwok-wai, 46, was also charged by the ICAC earlier. He pleaded not guilty to six counts of conspiracy to defraud today and had his trial fixed for February 9 next year.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). The IA and AIG had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Alen Ho.
Luk Kam-wai, 61, former insurance agent of AIG Insurance Hong Kong Limited (AIG), pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. The prosecution offered no evidence to three other similar charges against him.
Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to December 29 for mention and the defendant was granted bail.
At the material time, the defendant was the handling agent of a products liability insurance policy taken out by Dmark Metal Button Company Limited (Dmark) with AIG. According to the policy of AIG, the defendant was allowed to collect premium payments from Dmark on behalf of AIG, deduct his entitled commissions, and return the remaining sum to the insurer.
The court heard that on three occasions between October 2013 and November 2018, AIG issued renewal quotations to the defendant in respect of Dmark’s policy. On each occasion, the defendant issued an invoice with premium amount of about $79,000 to Dmark. During the period, Dmark paid a total of about $240,000 to a company of Luk as premiums for renewing the insurance policy.
The defendant admitted that he had overstated the premiums by a total of about $88,000. Had Dmark known the overstatements, it would not have approved the premium payments.
The then co-owner of Dmark, Leung Kwok-wai, 46, was also charged by the ICAC earlier. He pleaded not guilty to six counts of conspiracy to defraud today and had his trial fixed for February 9 next year.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). The IA and AIG had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Alen Ho.