Exploiting the Loophole Where Insurance Staff Only Verify On-Site Upon Dispatch Request
Embezzled 57.8 Million Won from Four Insurance Companies Over Four Years
[Asia Economy Reporter Ra Young-cheol] Motorcycle quick delivery business owners and delivery workers who collected tens of millions of won in insurance money through intentional traffic accidents were caught by the police in large numbers.
The suspects exploited a loophole where insurance company staff only verify the scene when the reporter requests dispatch upon accident reporting to the insurance company.
On the 17th, the Pocheon Police Station in Gyeonggi announced, "We have arrested 19 people, including quick delivery business owner A (37) and delivery workers, on charges of violating the Special Act on the Prevention of Insurance Fraud and sent them to the prosecution."
A and others are accused of causing or faking 11 traffic accidents in Yangju from December 2017 to November last year, embezzling 57.8 million won from four insurance companies under the pretext of medical expenses and vehicle repair costs.
According to the police investigation, A was found to have operated a motorcycle quick delivery company, hired juniors from the neighborhood as riders, and led the fraudulent activities.
The suspects deliberately caused traffic accidents using their own motorcycles or rental cars, then deceived as if an actual accident had occurred or pretended to have a false traffic accident.
The suspects reportedly used the embezzled insurance money for living expenses and have admitted to all charges.
The Traffic Crime Investigation Team of Pocheon Police Station said, "We received a tip that motorcycle quick delivery workers in Yangju deliberately caused accidents and deceived insurance companies to embezzle insurance money, and started an investigation," adding, "We will cooperate with each insurance company to eradicate insurance fraud."
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