Preventing Intentional Traffic Accident Insurance Fraud... National Police Agency Signs Business Agreement with 5 Organizations

Signing of the 'Intentional Traffic Accident Insurance Fraud Prevention MOU'

On the 26th, the Seoul Metropolitan Police Agency held a business agreement ceremony with the Crime Policy Research Institute, Korea Road Traffic Authority, General Insurance Association of Korea, Tmap Mobility, and Kakao Mobility, agreeing to mutually cooperate to prevent intentional traffic accident insurance fraud and establish a safe traffic culture.

‘Intentional traffic accident insurance fraud’ is an illegal act that threatens traffic safety and legal order, increases the insurance premium burden on the general public, and undermines community trust. The Seoul Metropolitan Police Agency has been conducting strict investigations into insurance fraud cases.

However, recently, automobile insurance fraud crimes have surged mainly among young people, and as the associated social costs increase, there is an urgent need to establish preventive measures. Last year, the amount detected for automobile insurance fraud was 547.6 billion KRW, an increase of 77.1 billion KRW (16.4%) compared to the previous year.

The six institutions participating in this business agreement mutually agreed on the recognition that the public and private sectors must join forces to prevent and eradicate intentional traffic accident insurance fraud, and they agreed to work together on activities to eliminate insurance fraud in the future.

The ‘Intentional Traffic Accident Insurance Fraud Preemptive Prevention Business Agreement (MOU)’ signed on this day includes △identification of areas with frequent intentional traffic accidents △voice guidance service in navigation apps △facility improvements such as installation of colored road surface guide lines △focused crackdowns and strict investigations on intentional accidents △support and promotional projects for victims of intentional accidents.

First, the Crime Policy Research Institute will conduct in-depth analysis based on point network spatial models of data from the insurance industry and police on intentional traffic accidents to identify areas with frequent intentional accidents. Tmap and Kakao will provide navigation voice guidance services to alert drivers upon entering these areas. Additionally, the Seoul Metropolitan Police Agency and Korea Road Traffic Authority will install colored road surface guide lines in these areas to improve facilities concurrently.

Along with this, the Seoul Metropolitan Police Agency plans to thoroughly investigate and punish all involved, from masterminds to simple participants, through meticulous investigations into organized insurance fraud crimes disguised as traffic accidents. The General Insurance Association of Korea also plans to operate a focused reporting period for insurance fraud solicitation and inducement activities, as the revised Special Act on Insurance Fraud Prevention, effective from the 14th of next month, enables punishment for recruiting accomplices in insurance fraud.

Kim Jong-cheol, Head of the Life Safety Traffic Department at the Seoul Metropolitan Police Agency, said, “Intentional traffic accident insurance fraud is a serious crime that threatens citizens’ safety and increases the insurance premium burden on the general public, thereby threatening the community. Thorough investigation of the crime and its prevention are of utmost importance, and we will actively cooperate with private companies and public institutions participating in this agreement to spread a safe traffic culture.”