Police have cracked a car insurance fraud case in Taichung. The nine-member fraud ring manufactured late-night accidents on roads without surveillance cameras, then filed insurance claims.
A sedan traveling at 100 kilometers per hour crashes into a truck. The truck spins 180 degrees before crashing into the two cars in front of it. While it looks like the accident was caused by a speeding driver that lost control of his vehicle, it was actually a manufactured crash to collect insurance. A car dealer surnamed Huang came up with the idea last September. His employee surnamed Lu recruited eight others to join the ring either as perpetrators or victims. The ring collected NT$6.06 million in insurance claims from five accidents.
Chuo Chun-chung, Deputy Chief Prosecutor, Taichung District Prosecutors Office: “Between October 2019 and June 2021, insurance companies were defrauded of NT$6.06 million in five separate cases.”
Lu manufactured high-speed crashes late at night or early in the morning on roads without surveillance cameras. The drivers of the cars causing the crashes were under orders to make sure engines were destroyed. The "victims" would then use police reports to file insurance claims. Taichung prosecutors closed the investigation on the 20th and indicted the nine members of the ring.
Chuo Chun-chung, Deputy Chief Prosecutor, Taichung District Prosecutors Office: “Of the 17 vehicles that were damaged, five involved innocent victims. The nine defendants have been charged with fraud and other offenses.”
Prosecutors say the case was brought to their attention by the Criminal Investigation Bureau after an insurance company suspicious the accidents weren't real accidents filed a report with the Institute of Financial Law and Crime Prevention.