ICAC smashes motor accident fraud syndicate
2000-1-26
The ICAC has smashed a syndicate which allegedly planned and arranged a spate of motor accidents and swindled about $3.5 million in claims from a number of insurance companies.
It is believed that the syndicate, in making fraudulent insurance claims, has bribed motor accident surveyors to support inflated repair costs.
In the past two days (Tuesday and Wednesday), 22 people were arrested. Among them were four owners of two garages and seven others who were their relatives and employees. The remaining arrestees were 11 vehicle owners and drivers. Ten motor surveyors w ere interviewed.
It is believed that a garage co-owner was at the centre of the scam. He had allegedly arranged for his friends and relatives to intentionally crash their cars. With the corrupt assistance of motor surveyors, the cost of repair was inflated. And the parti es involved had allegedly shared the proceeds.
It is alleged that before the accidents took place, the garage had replaced the original vehicle parts with old parts in order to minimise the repair costs.
Investigations revealed that between 1996 and 1999, the syndicate had made
at least 43 fraudulent motor insurance claims, totalling $3.5 million, against 14 insurance companies.
The claims concerned 31 reported accidents, surveyed by nine motor accident surveyors. It was alleged that the 37 vehicle owners and drivers involved were associated with one of the garage operators arrested.
And some of the 17 vehicles involved, mostly deluxe saloon cars, had been re-registered and used in more than one accident.
It is also alleged that a number of insurance claims related to road accidents which occurred in unusually similar circumstances:
- BMW or Mercedes motors cars collided with lorries at night or knocked into “black dogs”;
- Severe damage was caused to the vehicles but no personal injuries resulted;
- No independent witnesses; and
- A significant number of damaged vehicles were surveyed by the same motor surveyor;
The ICAC had earlier received a corruption report alleging that a proprietor of a motor surveying company might have accepted advantages from car owners and garage operators to assist in making fraudulent insurance claims.
The insurance companies concerned have been rendering full assistance to the ICAC.
All arrestees have been released on ICAC bail, pending further inquiries.
It is believed that the syndicate, in making fraudulent insurance claims, has bribed motor accident surveyors to support inflated repair costs.
In the past two days (Tuesday and Wednesday), 22 people were arrested. Among them were four owners of two garages and seven others who were their relatives and employees. The remaining arrestees were 11 vehicle owners and drivers. Ten motor surveyors w ere interviewed.
It is believed that a garage co-owner was at the centre of the scam. He had allegedly arranged for his friends and relatives to intentionally crash their cars. With the corrupt assistance of motor surveyors, the cost of repair was inflated. And the parti es involved had allegedly shared the proceeds.
It is alleged that before the accidents took place, the garage had replaced the original vehicle parts with old parts in order to minimise the repair costs.
Investigations revealed that between 1996 and 1999, the syndicate had made
at least 43 fraudulent motor insurance claims, totalling $3.5 million, against 14 insurance companies.
The claims concerned 31 reported accidents, surveyed by nine motor accident surveyors. It was alleged that the 37 vehicle owners and drivers involved were associated with one of the garage operators arrested.
And some of the 17 vehicles involved, mostly deluxe saloon cars, had been re-registered and used in more than one accident.
It is also alleged that a number of insurance claims related to road accidents which occurred in unusually similar circumstances:
- BMW or Mercedes motors cars collided with lorries at night or knocked into “black dogs”;
- Severe damage was caused to the vehicles but no personal injuries resulted;
- No independent witnesses; and
- A significant number of damaged vehicles were surveyed by the same motor surveyor;
The ICAC had earlier received a corruption report alleging that a proprietor of a motor surveying company might have accepted advantages from car owners and garage operators to assist in making fraudulent insurance claims.
The insurance companies concerned have been rendering full assistance to the ICAC.
All arrestees have been released on ICAC bail, pending further inquiries.