Busan Police Arrest Large Group for Intentional False Traffic Accident Insurance Fraud
23 Including Insurance Agents Detained, 2 Arrested ... Investigation Team to Be Expanded
There is an increasing number of fraud schemes where drivers deliberately collide with vehicles attempting to change lanes, especially foreign cars, to claim insurance money. The Busan Police have decided to strengthen their response by expanding the Traffic Crime Investigation Team. [Image source=Busan Police Agency]
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] As fraudulent schemes involving collusion with insurance policyholders to stage traffic accidents and claim insurance money have been on the rise, the police have taken strong measures, including expanding investigative personnel.
On the 16th, the Busan Metropolitan Police Agency announced that they had arrested 23 people who intentionally caused traffic accidents or reported false traffic accidents to collect a total of 120 million won from insurance companies, detaining 2 of them and referring them to the prosecution with an indictment opinion.
According to the police, insurance planner A, who was detained, is suspected of recruiting acquaintances as insurance policyholders over the past two years and then intentionally causing traffic accidents or falsely reporting traffic accidents to receive insurance payouts and traffic accident settlement money from specific insurance products, which were then shared among them.
The police identified that they collected 80 million won over 15 incidents.
Additionally, the police referred B to the prosecution with an indictment opinion on charges of intentionally causing accidents by targeting vehicles changing lanes to collect repair costs and other expenses.
Over the past two years, B drove a foreign luxury car and deliberately caused collisions only with vehicles that turned on their turn signals and changed lanes at intersections or congested areas.
B collected 40 million won in insurance money over 21 incidents through repair costs and settlement money.
The police believe B committed these crimes by exploiting the fact that vehicles changing lanes bear greater fault in accidents.
The police explained that recently, automobile insurance fraud patterns have been increasing, involving intentionally colliding with vehicles entering by changing lanes or invading lanes near intersections with heavy traffic congestion.
A police official advised, “If an accident occurs despite sufficiently checking the rear, turning on the turn signal, and changing lanes, or if the other party demands settlement money first instead of going through insurance processing, which raises suspicion of intentional accidents, report it separately to 112 or to the police station in the area where the traffic accident occurred, in addition to notifying the insurance company.”
The Busan Metropolitan Police Agency has expanded and reorganized the Traffic Crime Investigation Team, which was previously one team, into two teams to strongly respond to insurance fraud crimes connected to automobile insurance fraud and violent cases.
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