Integrity Focus

Following the prosecution of three people for their alleged roles in a $37.5 million critical illness insurance compensation scam in which cancer patients were posed as relevant policyholders to undergo medical examinations at clinical institutions to obtain the required medical certificates, a policyholder and her sister were earlier (June 3) further charged by the ICAC and brought to the Eastern Magistrates’ Courts this morning (June 5).

Liao Xiaoyi, 44, designer, faced two counts of conspiracy to defraud, contrary to the Common Law; her younger sister Liao Xiaoling, 37, freelance editor, faced three counts of incitement to commit forgery, contrary to the Common Law and section 71 of the Crimes Ordinance.

No plea was taken today. Principal Magistrate Miss Ivy Chui Yee-mei adjourned the case to 17 July 2023 for mention. The two defendants were remanded in the custody of the Correctional Services Department.

In May 2017, Liao Xiaoyi took out a critical illness insurance policy with AIA International Limited (AIA) which was handled by insurance agent Wong Ka-keung.

It is alleged that between October 2017 and December 2020, Liao Xiaoyi conspired together with Wong and other persons to defraud AIA by dishonestly falsely representing that Liao Xiaoyi had been diagnosed with stomach cancer and ovarian cancer, in order to cause and induce AIA to approve her critical illness claims and to pay her compensations in accordance with the insurance policy took out by her.

The ICAC investigation arose from a corruption complaint. It was revealed that two cancer patients were allegedly arranged to pose as Liao Xiaoyi to undergo medical examinations at clinical institutions so as to obtain the required medical certificates.

Enquiries also revealed that the two claims made by Liao Xiaoyi under her insurance policy were either declined or withheld by AIA.

Meanwhile, the charges against Liao Xiaoling alleged that she incited Wong to make three false certificates of sickness with the intention of inducing other persons to accept them as genuine.

In a separate case, Wong was earlier charged by the ICAC with two others – policyholder Lo Chun-kit and Leung Wai-kin, who posed as Lo to undergo medical examinations – for their roles in the scam concerned. The 10 insurance policies handled by Wong involved critical illness and medical expenses claims totaling about $37.5 million. Their case was scheduled for mention next Monday (June 12).

AIA had rendered full assistance to the ICAC during its investigation into the cases. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.

The prosecution was today represented by ICAC officer Jeff Chow. 

The ICAC had assisted the insurance industry in strengthening its corruption prevention capabilities in key operational areas, such as claims verification and collaborated with the industry to produce the “Corruption Prevention Guide for Insurance Companies”. Insurance companies, insurance practitioners and policyholders could also refer to the Ethics Promotion Website for the Insurance Industry.