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Tue, Mar 20, 2001 - Page 3 News List

Watson's accused again of filing false insurance claims

STAFF WRITER

More accusations were raised yesterday that drugstore chain Watson's (屈臣氏) had employees intentionally damage goods in order to file fraudulent insurance claims.

The allegations follow similar claims last week by independent lawmaker Lin Ruey-tou (林瑞圖) and two former Watson's employees.

According to the third witness -- who is a former assistant manager at a Watson's store in Taipei County -- Watson's ordered branches located in areas that had suffered natural disaster to purposely damage goods that were unsalable and merchandise that had expired. The witness alleges that this behavior was especially prevalent after the 921 earthquake in 1999 and last year's Typhoon Xangsane (象神).

The company would then say the goods had been damaged in the disaster and file a claim with the insurance company.

The witness said he was actually sent to two branch stores located in an area heavily effected by the 921 earthquake to help damage unsalable goods.

"We did this many times," the witness said. "Quite a few employees were forced to quit or were fired because they would not cooperate," the witness added.

Lin also said that the company had required employees to sign a confidentiality agreement. He said many employees are afraid to testify, worrying that they might be seen as accomplices.

A spokesman for Hutchison Whampoa, which owns the chain, would not comment on the case.

Officials at the Taipei branch of Watson's insurers, the French company AXA, said yesterday that they were not sure how much insurance money Watson's has received to date.

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