Dozens of individuals who deliberately caused traffic accidents to fraudulently claim insurance money from insurance companies have been arrested by the police. Among them, there are reportedly insurance agents, causing shock.
On the 5th, Yonhap News reported that the Traffic Division of the Gyeonggi Southern Provincial Police Agency arrested 14 people, including a 20-year-old insurance agent A, on charges of violating the Special Act on the Prevention of Insurance Fraud, and sent five of them to prosecution in custody and nine without detention. Additionally, 39 acquaintances, customers, and automobile repair shop officials related to these agents were booked without detention on the same charges. The police began investigating after receiving a tip from an insurance company about suspicious insurance fraud cases, and after a 1 year and 7 months investigation, they were able to apprehend the group.
Accidents arranged by setting time and place to collide with each other... Unnecessary cast treatment claimed through cast special contract
A and others were insurance agents working at an insurance agency located in Gunpo City. From June 2020 to October last year, they are accused of deliberately causing traffic accidents or exaggerating accident damages in the metropolitan area 66 times, claiming a total of approximately 549 million KRW in insurance money. They prearranged dates, times, and locations, lured customers, and caused accidents by colliding with each other at intersections or colliding with ordinary drivers changing lanes to claim insurance money.
They also encouraged customers to subscribe to a special contract that pays insurance money for cast treatment. Then, even when customers were not actually injured or did not need cast treatment, they received full cast treatment and claimed insurance money about 58 million KRW over 50 times. It is reported that they persuaded customers by saying things like "We know the hospital well, so you don't need to worry," and "It's available immediately, but I recommend doing the full cast treatment two weeks later." Customers who heard this underwent full cast treatment without injury, and as soon as they claimed insurance money, they boldly removed the cast themselves, showing the audacity of the crime.
In group chat, conversations related to fraud such as "Hope you get into an accident," "It definitely doesn't hurt"
Group chat contents of insurance agents involved in insurance fraud schemes. [Image source=Gyeonggi Nambu Police Agency]
In the group chat of the insurance agency where A and others worked, conversations predicting fraudulent acts were found. In the chat room, insurance agents exchanged messages such as "Finally, an accident happened," "There have been many attempts to cause accidents these days, my heart is trembling," and "Hope you get into an accident."
A police official said, "The initial tip was about one suspected insurance fraud case, but after investigating financial transaction details, it was revealed that many insurance agents at the insurance agency were committing insurance fraud," adding, "Insurance fraud is a serious crime that increases the insurance premiums burden on innocent third parties, so we will continue to investigate strictly."
Amendment to the Special Act on the Prevention of Insurance Fraud to be enforced on the 14th of next month... However, no provision for aggravated punishment of insurance agents
Meanwhile, the amendment to the Special Act on the Prevention of Insurance Fraud, which will be enforced on the 14th of next month, newly includes a provision that punishes acts of soliciting, mediating, or recruiting insurance fraud with imprisonment of up to 10 years or a fine of up to 50 million KRW. This is a more specific provision of the existing rule that punishes those who obtain insurance money through insurance fraud or cause a third party to obtain insurance money with imprisonment of up to 10 years or a fine of up to 50 million KRW. However, it is reported that the amendment does not include a provision for aggravated punishment when insurance agents commit insurance fraud.
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