Insurance policy holder jailed for fraud over HK$160,000 compensations
2019-4-30
An insurance policy holder, charged by the ICAC, was today (April 30) sentenced to 11 weeks’ imprisonment at the Eastern Magistracy for conspiracy and attempting to defraud six insurance companies of compensations amounting to about HK$160,000.
Chim Kwong-shun, 36, earlier pleaded guilty to 11 charges – two of conspiracy to defraud, contrary to Common Law; two of fraud, contrary to Section 16A of the Theft Ordinance; and seven of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance.
In sentencing, Principal Magistrate Peter Law Tak-chuen reprimanded Chim for being the main culprit for the premeditated insurance fraud, which lasted a long period of time, and said the offences committed by him were serious.
The principal magistrate stressed that the insurance companies simplified claim procedures for claimants’ convenience and to save costs. Chim, however, abused such weakness to make false claims.
The principal magistrate also said he reduced the starting point of 21 weeks in jail to 11 weeks after taking into account Chim’s guilty plea, his repayments to the insurance companies and his willingness to assist the prosecution in testifying against a co-defendant.
Upon the principal magistrate’s order, Chim was required to repay the insurance companies via court about $14,900 that he received as a result of the false claims.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that Chim and Tsang Hin-yeung had known each other for 10 odd years.
In May 2014, Tsang took out a home insurance policy from Dah Sing Insurance Company (1976) Limited (Dah Sing). With Chim’s assistance, Tsang filed two claims with Dah Sing by falsely representing that he had suffered property loss in Hong Kong, and asked for compensations totalling HK$11,650 and 25,480 Renminbi (about HK$31,850).
As a result, Tsang received compensations of HK$8,500 in total from Dah Sing, and paid Chim over HK$2,800 as rewards for his assistance in making the false claims.
The court heard that between September 2015 and January 2017, Tsang took out four home or travel insurance policies from AXA General Insurance Hong Kong Limited (AXA), Bank of China Group Insurance Company Limited (BOC) and MSIG Insurance (Hong Kong) Limited (MSIG).
Tsang later filed four claims to the insurance companies for compensation of over HK$53,000 in total. On the claim forms, he falsely represented that he had suffered property loss in Shenzhen. To support his claims, Tsang also submitted to the insurance companies an explanatory statement on the purported lost incident, which was prepared by Chim. However, the four claims were rejected by the insurance companies.
The court heard that in October 2014, Chim’s younger brother took out a home insurance policy from Hong Leong Insurance (Asia) Limited (Hong Leong), which covered personal properties of Chim.
Chim later filed a claim with the insurance company, and asked for compensations of HK$20,180 and 10,950 Renminbi (about HK$13,680). On the claim form, he falsely represented that he had suffered property loss. However, his claim was rejected.
The court heard that in September 2016, Chim took out three home or travel insurance policies from AXA, BOC and Chubb Insurance Hong Kong Limited (Chubb). He later filed four claims with Hong Leong and the aforesaid three insurance companies, asking for compensations totalling HK$26,360. On the claim forms, he falsely represented that he had suffered property loss in Shenzhen.
AXA and Hong Leong rejected his claims, while BOC and Chubb accepted his claims and released over HK$7,600 and HK$4,480 as compensation to him respectively.
Tsang, 29, a casual worker, who was also charged by the ICAC for his role in the scam, earlier pleaded guilty to nine charges – three of conspiracy to defraud; four of attempted fraud; and two of conspiracy to make a false report of commission of offence, contrary to Section 64(a) of the Police Force Ordinance and Section 159A of the Crimes Ordinance. He was earlier sentenced to eight weeks’ imprisonment at the Eastern Magistracy.
Dah Sing, AXA, BOC, MSIG, Hong Leong and Chubb had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Justin Tung.
Chim Kwong-shun, 36, earlier pleaded guilty to 11 charges – two of conspiracy to defraud, contrary to Common Law; two of fraud, contrary to Section 16A of the Theft Ordinance; and seven of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance.
In sentencing, Principal Magistrate Peter Law Tak-chuen reprimanded Chim for being the main culprit for the premeditated insurance fraud, which lasted a long period of time, and said the offences committed by him were serious.
The principal magistrate stressed that the insurance companies simplified claim procedures for claimants’ convenience and to save costs. Chim, however, abused such weakness to make false claims.
The principal magistrate also said he reduced the starting point of 21 weeks in jail to 11 weeks after taking into account Chim’s guilty plea, his repayments to the insurance companies and his willingness to assist the prosecution in testifying against a co-defendant.
Upon the principal magistrate’s order, Chim was required to repay the insurance companies via court about $14,900 that he received as a result of the false claims.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that Chim and Tsang Hin-yeung had known each other for 10 odd years.
In May 2014, Tsang took out a home insurance policy from Dah Sing Insurance Company (1976) Limited (Dah Sing). With Chim’s assistance, Tsang filed two claims with Dah Sing by falsely representing that he had suffered property loss in Hong Kong, and asked for compensations totalling HK$11,650 and 25,480 Renminbi (about HK$31,850).
As a result, Tsang received compensations of HK$8,500 in total from Dah Sing, and paid Chim over HK$2,800 as rewards for his assistance in making the false claims.
The court heard that between September 2015 and January 2017, Tsang took out four home or travel insurance policies from AXA General Insurance Hong Kong Limited (AXA), Bank of China Group Insurance Company Limited (BOC) and MSIG Insurance (Hong Kong) Limited (MSIG).
Tsang later filed four claims to the insurance companies for compensation of over HK$53,000 in total. On the claim forms, he falsely represented that he had suffered property loss in Shenzhen. To support his claims, Tsang also submitted to the insurance companies an explanatory statement on the purported lost incident, which was prepared by Chim. However, the four claims were rejected by the insurance companies.
The court heard that in October 2014, Chim’s younger brother took out a home insurance policy from Hong Leong Insurance (Asia) Limited (Hong Leong), which covered personal properties of Chim.
Chim later filed a claim with the insurance company, and asked for compensations of HK$20,180 and 10,950 Renminbi (about HK$13,680). On the claim form, he falsely represented that he had suffered property loss. However, his claim was rejected.
The court heard that in September 2016, Chim took out three home or travel insurance policies from AXA, BOC and Chubb Insurance Hong Kong Limited (Chubb). He later filed four claims with Hong Leong and the aforesaid three insurance companies, asking for compensations totalling HK$26,360. On the claim forms, he falsely represented that he had suffered property loss in Shenzhen.
AXA and Hong Leong rejected his claims, while BOC and Chubb accepted his claims and released over HK$7,600 and HK$4,480 as compensation to him respectively.
Tsang, 29, a casual worker, who was also charged by the ICAC for his role in the scam, earlier pleaded guilty to nine charges – three of conspiracy to defraud; four of attempted fraud; and two of conspiracy to make a false report of commission of offence, contrary to Section 64(a) of the Police Force Ordinance and Section 159A of the Crimes Ordinance. He was earlier sentenced to eight weeks’ imprisonment at the Eastern Magistracy.
Dah Sing, AXA, BOC, MSIG, Hong Leong and Chubb had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Justin Tung.