Integrity Focus

The ICAC today (October 27) charged an insurance intermediary after a corruption investigation revealed that he had allegedly conspired together with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries.

Lalwani Jay Jerome, 34, then referrer engaged by Asia One Asset Management Limited (Asia One), faces eight counts of conspiracy to defraud, contrary to the Common Law.

The defendant was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts next Wednesday (November 1) for plea.

At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders respectively took out an AIA life insurance policy with an accident rider through the defendant.

The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders had to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments and sick leave certificates issued by doctors or physiotherapists.

It is alleged that the defendant had conspired with the two policyholders to defraud AIA by dishonestly falsely representing that the latter had respectively injured his/her back, knees or ankle and that the supporting documents issued by two doctors and two physiotherapy clinics were genuine, thereby inducing or causing AIA to pay insurance compensation totalling at least over $120,000 to them.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.

The two policyholders concerned, Tam Kai-chun, 36 and Lam In-kwan, 32, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to February 2, 2024 for mention.

AIA has rendered full assistance to the ICAC during its investigation into the case.

The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC has recently organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal.