Man who severed own arm to collect insurance sentenced to prison

A man in his 30s who deliberately severed his own arm to fraudulently collect 120 million won ($83,300) in workers' compensation and other insurance benefits has been sentenced to prison.

Judge Kang Shin-young of the Wonju Branch of Chuncheon District Court sentenced the defendant, identified only as A, 31, to one year in prison, suspended for two years, on charges of fraud and violation of the Industrial Accident Compensation Insurance Act, Yonhap reported Saturday.

According to the indictment, A used an electric bone saw at a food ingredient store in Asan, South Chungcheong Province, around 7 p.m. on Dec. 21, 2020, to cut off his own left arm while on the job. A month later, on Jan. 19, 2021, he filed a claim with the Korea Workers' Compensation and Welfare Service, falsely representing the injury as a workplace accident. Using this scheme, he fraudulently collected a total of 122.37 million won in benefits through Nov. 19, 2024.

Investigators found that A had intentionally severed his arm to collect insurance money, yet claimed it was an accidental workplace injury.

A had also been tried separately for fraudulently collecting 180 million won from private insurers through the same scheme and was sentenced to one year and two months in prison on Nov. 13, 2024, a sentence that has since been finalized.

At the time, A had attempted to collect 570 million won from multiple private insurance companies but was turned down by each after they grew suspicious of fraud.

The court said it took into account that A admitted to and expressed remorse for the offense, and that he had already served a prison sentence handed down in connection with the fraud against private insurers arising from the same incident.

Under relevant law, a conviction carrying a fine or heavier punishment requires not only imprisonment but also full repayment of the fraudulently obtained benefits, including accrued interest.