China Legal Blog
Aggregated China Law Information
31 arrested for insurance fraud
Aggregated Source: ChinaLegalBlog.com

Police arrested 31 people in a syndicated insurance fraud case involving traffic accidents, during an operation yesterday.

 

Police received a report in June about traffic accident 'victims' filing bogus insurance claims.

 

Following extensive investigations, officers arrested 23 men and eight women, aged 22 to 55, for conspiracy to defraud. They included three taxi drivers, three private car drivers, eight taxi passengers, 13 private car passengers, and four doctors.

 

Police found someone had driven a private car on the road and rammed into a taxi deliberately. All passengers on board the two vehicles claimed to be injured. They consulted designated medical doctors for examination and treatment, and were granted sick leave certificates for up to 94 days.

 

They then filed insurance claims for loss of income during the sick leave period, of up to $900,000.

 

The arrestees are believed to be connected to insurance claims for three other accidents in 2009 and 2010, involving $8.68 million, of which $3 million has been granted.