Friday , 20 September 2019
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Konecranes receives US$11m insurance indemnity for fraud

 Finnish manufacturer Konecranes has announced that it received an insurance indemnity of €10m (US$11.3m) following a fraud which cost the company €17m (US$19.3m) in 2015.

The insurance indemnity received by the company for the fraud, of which one of Konecranes’ foreign subsidiaries had been a victim, is equal to the maximum sum insured, leading to an effective loss of about €7m (US$8m) for the manufacturer.

According to a company statement, in 2015 the fraud’s perpetrators induced the subsidiary to make unwarranted payments for a total amount of up to €17m (US$19.3m) through identity theft and other fraudulent actions.

The total amount lost was booked as a non-recurring cost in the third quarter of 2015, while the insurance indemnity received will be booked as an adjustment to the company’s results for the second quarter of 2016.

Konecranes added in a statement that the insurance indemnity will not have an impact on the financial guidance for 2016 previously published by the company.