Punitive damages or exemplary damages are money damages awarded to a plaintiff in a private civil action, in addition to and apart from compensatory damages, assessed against a defendant guilty of flagrantly violating the plaintiff's rights. On February 4, 2015, Legislative Yuan amended Financial Consumer Protection Act, it provided that the court may, in response to a claim by a financial consumer, award punitive damages by act of financial services enterprise. Could it deterred the willful act of misconduct by a financial services enterprise effectively? This article will focus on the insurance case. It will also discusses the functions of punitive damages, the cases of common law, and Taiwan judicial opinions on punitive damages. This article will have more discussions on these relevant issues.