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31 pocketed money from insurance firms through intentional accidents

31 pocketed money from insurance firms through intentional accidents

Posted June. 07, 2021 07:20,   

Updated June. 07, 2021 07:20


Police have caught some 30 used car dealers in their 20s who intentionally caused accidents with imported vehicles and received compensations from insurance companies.

According to Wonmi Police Station in Bucheon, Gyeonggi Province on Sunday, “We have arrested two including a 29-year-old used car dealer, and booked without detention 29 others on the charge of violation of the special act on prevention of insurance fraud.”

The police said they are all alumni from same elementary, middle or high schools. They would intentionally cause traffic accidents in Incheon and Bucheon from January 2015 to December 2019, received compensation and treatment expenses for settlement from insurance companies by exaggerating damages. They pocketed a total of 520 million won (about 466,000 U.S. dollars) through 52 accidents.

The suspects, mostly used car dealers, used to drive about three expensive imported cars simultaneously, and when they spotted vehicles violating traffic rules, they intentionally cause accidents. Then, they demanded compensation by holding the victims accountable.

They took advantage of the fact imported cars take longer time and cost more money to fix as parts are harder to find. For this reason, insurance companies often pay “advance repair expenses” in cash rather that actually repairing damaged vehicles. “We confirmed that they habitually caused accidents once or twice per month,” a police source said. “They are found to have spent most of compensation money for entertainment.”

Kum-Chun Hwang kchwang@donga.com