Audits uncover insurance violations
By Zhang Fengming |
February 1, 2011, Tuesday
|
Print Edition
Print Edition
CHINA'S two Fortune 500 insurers made a combined 3 billion yuan (US$455 million) through fake premium data and other wrongdoings in their 2009 balance sheets, China's top auditor said yesterday.
China Life Insurance (Group) Co, China's biggest insurer, was disclosed with 1.1 billion yuan of irregularities, including pretending individual insurance as group insurance and faking insurance premiums that didn't exist, the National Audit Office said on its website yesterday.
Some branches of Beijing-based China Life were found to have exaggerated premiums by 278 million yuan through asking companies to buy commercial pension policies for employees and then writing off the policies. Through this trick they could fill the quota required by the parent company with non-existing policyholders.
China Life, the biggest Chinese mainland insurer on the Fortune 500 list, was also found out to have falsified its books by claiming compensation on behalf of clients but using the money for company expenditure.
False accounting at China Life also involved 375 million yuan.
The branches involved have corrected their books and paid back 18.46 million yuan in tax and punished 105 people for the wrong-doings, according to the audit office.
China Life, listed in Hong Kong and Shanghai, posted combined assets of 1.6 trillion yuan, or a profit of 40.3 billion yuan, for 2009.
Meanwhile, state-owned People's Insurance Co (Group) of China was disclosed to have 1.95 billion yuan of irregularities.
Seventeen branches of the insurer, better known as PICC, faked agricultural insurance to cheat the government out of subsidies with irregularities valued at 412 million yuan. For instance, the Hunan branch alone illegally claimed 9 million yuan in government subsidies.
Financial irregularities were also disclosed - 13 branches in cities including Beijing and Shanghai were found out to have exaggerated expenditure or falsely claimed for entertaining. For instance, its Yunnan outlets were disclosed to have used fake invoices to claim for dinners or gifts for 16.2 million yuan.
PICC had corrected its balance sheets after the wrongdoings were disclosed and paid 2.45 million yuan tax to authorities. At least 24 individuals were punished, the audit office said.
Irregularities at both companies were posted after they, their branches and subsidiaries were audited from May to July last year.
China Life Insurance (Group) Co, China's biggest insurer, was disclosed with 1.1 billion yuan of irregularities, including pretending individual insurance as group insurance and faking insurance premiums that didn't exist, the National Audit Office said on its website yesterday.
Some branches of Beijing-based China Life were found to have exaggerated premiums by 278 million yuan through asking companies to buy commercial pension policies for employees and then writing off the policies. Through this trick they could fill the quota required by the parent company with non-existing policyholders.
China Life, the biggest Chinese mainland insurer on the Fortune 500 list, was also found out to have falsified its books by claiming compensation on behalf of clients but using the money for company expenditure.
False accounting at China Life also involved 375 million yuan.
The branches involved have corrected their books and paid back 18.46 million yuan in tax and punished 105 people for the wrong-doings, according to the audit office.
China Life, listed in Hong Kong and Shanghai, posted combined assets of 1.6 trillion yuan, or a profit of 40.3 billion yuan, for 2009.
Meanwhile, state-owned People's Insurance Co (Group) of China was disclosed to have 1.95 billion yuan of irregularities.
Seventeen branches of the insurer, better known as PICC, faked agricultural insurance to cheat the government out of subsidies with irregularities valued at 412 million yuan. For instance, the Hunan branch alone illegally claimed 9 million yuan in government subsidies.
Financial irregularities were also disclosed - 13 branches in cities including Beijing and Shanghai were found out to have exaggerated expenditure or falsely claimed for entertaining. For instance, its Yunnan outlets were disclosed to have used fake invoices to claim for dinners or gifts for 16.2 million yuan.
PICC had corrected its balance sheets after the wrongdoings were disclosed and paid 2.45 million yuan tax to authorities. At least 24 individuals were punished, the audit office said.
Irregularities at both companies were posted after they, their branches and subsidiaries were audited from May to July last year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
