[Asia Economy Reporter Moon Jiwon] A reporting center that receives tips on suspected insurance fraud cases involving commercial vehicles such as buses, taxis, and freight trucks and conducts investigations will open.
The Ministry of Land, Infrastructure and Transport announced on the 19th that starting from the 20th, it will operate the "Automobile Mutual Aid Insurance Fraud Reporting Center" at the Korea Transportation Safety Authority to improve the detection of insurance fraud related to commercial vehicles enrolled in the Automobile Mutual Aid Association.
The Automobile Mutual Aid Association includes six associations: corporate taxis, freight trucks, buses, individual taxis, charter buses, and rental cars.
Currently, the Financial Supervisory Service's "Insurance Fraud Prevention Center" receives tips and investigates suspected insurance fraud cases, but insurance fraud involving transportation business mutual aid associations such as buses, taxis, freight trucks, and rental cars could not be reported, making detection difficult.
Accordingly, the Ministry of Land, Infrastructure and Transport has been promoting joint investigations with the mutual aid associations since 2019 to enhance the effectiveness of insurance fraud investigations related to automobile mutual aid.
The Ministry also established a reward system for whistleblowers to encourage reporting of suspected insurance fraud cases. A reward of approximately 6 million KRW will be given for detecting insurance fraud amounting to 500 million KRW.
Kim Ki-hoon, head of the Automobile Insurance Team at the Ministry of Land, Infrastructure and Transport, said, "Through cooperation among the Ministry, the Korea Transportation Safety Authority, and the Automobile Mutual Aid Association, reporting of insurance fraud cases involving automobile mutual aid accidents will be activated, and the use of black box footage from commercial vehicles to prove insurance fraud will be strengthened."
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