The Insurance Authority (IA) of Hong Kong has enforced disciplinary measures against Ma Chun Kei, a former technical representative of a broker company, by imposing a 4.5-year prohibition on his licence application, following findings that Ma engaged in misconduct and fabricated a certificate of insurance for a professional liability and employees’ compensation insurance policy.
The incident unfolded when Ma assisted a client in obtaining professional liability and employees’ compensation insurance for a four-month interior renovation project, commencing January 13, 2022. Although Ma claimed the client accepted an insurer’s quotation on January 12, and that the insurer was informed, the insurer later confirmed no response to the quotation was received. On January 13, when the client inquired about the insurance policy, Ma assured him it would be provided later.
Under the false belief that the insurer was processing the certificate of insurance, but delayed due to the pandemic, Ma altered an existing certificate from the same insurer, creating a fraudulent document for the client’s insurance. This fabricated certificate was sent to the client in the early hours of January 14.
The malpractice was discovered in March 2022 when a broker company staff member requested a copy of the policy from the insurer, leading to Ma’s admission of his unauthorised action, a breach of the Code of Conduct for Licensed Insurance Brokers issued by the IA.
Ma’s actions gave the client a false sense of security, believing they had a valid insurance policy in place. This exposed the client to potential financial liabilities and criminal prosecution risks for lacking a valid employee compensation insurance policy. Fortunately, these risks did not materialise, with the client completing the project without incurring any loss or facing criminal charges.
The IA highlighted Ma’s failure to relay the client’s acceptance of the insurance quote to the insurer and his subsequent inaction to rectify the situation by completing the insurance application process in March 2022. This omission left the client without valid insurance for the remaining duration of the project.
The IA has emphasised the crucial role of insurance brokers and their representatives in acting in the best interests of policyholders, ensuring their insurance needs are met with integrity and competence. The public’s trust in the integrity of insurance brokers is paramount, and any breach of this trust, particularly through the fabrication of insurance documents, is considered serious misconduct with potential criminal implications.
The IA has also maintained its zero-tolerance stance towards such malpractices and asserts that severe disciplinary actions are necessary to penalise and deter similar misconduct. Just yesterday, the regulator imposed disciplinary measures against another agent after the misappropriation of gift vouchers.
What are your thoughts on this story? Please feel free to share your comments below.
