Recently individuals who are not allowed to establish medical institutions according to Medical Service Act are hiring medical doctors, and establishing and operating medical institutions (hereinafter referred to as “Administrator Hospital”). These hospitals neglect treatment and safety of patients and are operated solely for making profits, causing public criticism. That is, Administrator Hospitals have been a hotbed of insurance fraud cases such as false and excessive claims of medical costs, leading to side effects such as illicit payouts of public and private insurance money, which ultimately results in an increase of insurance premium payments for insurance subscribers and inflicts damage on many law-abiding insurance policyholders. As for health insurance, Article 57 of the National Health Insurance Act provides that the entire amount of health insurance benefit costs that were paid to medical institutions that were confirmed as Administrator Hospitals can be collected as an unjust profit.
However, with respect to motor vehicle insurance that most vehicle owners purchase, there are no relevant legal provisions on which to collect insurance benefit costs, making it difficult to collect motor vehicle insurance medical fees paid to medical institutions that are found to be in violation of the Medical Service Act.
The Amendment enables insurers, etc., to collect motor vehicle insurance medical fees paid to medical institutions or individuals who opened such medical institutions that were ultimately discovered to be an Administrator Hospital, and prevents medical institutions from filing a claim for payment of medical costs from motor vehicle accident patients, thereby aiming to reduce incentives for promoting the establishment and use of Administrator Hospitals while protecting the interests of law-abiding insurance policyholders (Article 12, paragraphs 6 through 8 newly inserted, etc.).

Claim for and Payment of Motor Vehicle Insurance Medical Fees (Article 12)