5.2 Billion Won Insurance Payout... Squandered on Entertainment Expenses
4 Arrested for Violating Special Act on Insurance Fraud Prevention
A gang that deliberately caused accidents targeting vehicles violating traffic laws nationwide to extort settlement money was caught by the police, Yonhap News reported on the 3rd.
On this day, the Jeonbuk Jeonju Wansan Police Station booked 21 people on charges including violation of the Special Act on the Prevention of Insurance Fraud, detaining four of them. They are suspected of deliberately causing 67 accidents since 2018 across Seoul, Gyeonggi, and Jeonbuk, embezzling 526 million won in total.
The police believe they deliberately caused accidents by targeting vehicles violating traffic laws. When they saw vehicles not using turn signals or suddenly attempting lane changes, they accelerated to intentionally collide with them.
It is known that they exploited the fact that even minor traffic accidents could lead to large settlement payments by undergoing long-term medical treatment and filing various complaints with insurance companies. The police explained, "Some insurance companies tend to trust the victim vehicles more and prefer to quickly resolve complaints, so they readily accepted the demands of these perpetrators."
Their crimes were uncovered when the police investigating a traffic accident in Jeonju suspected it was intentional and launched an investigation. Subsequently, the police analyzed traffic accident videos and insurance payment records to arrest them one by one.
The suspects are mostly in their early to mid-30s and are friends or senior-junior acquaintances met in society. The insurance money received under the names of hospitalization and settlement fees was reportedly all squandered on gambling funds and entertainment expenses.
A police official said, “If you suspect an intentional accident in a traffic accident that occurred by chance, please report it to the police at any time.” He also stated, "Since most of the suspects have admitted to the crimes, the case will be sent to the prosecution soon."
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