FANews
FANews
RELATED CATEGORIES
Category Fraud/Crime
SUB CATEGORIES General | 

SAPS/SAICB close in on KZN suspect for insurance fraud on a luxury vehicle

19 October 2012 South African Insurance Crime Bureau and the South African Police

An arrest was made in the second week of October after a 4 month long investigation by members of the Organised Crime Port Shepstone and the South African Insurance Crime Bureau (SAICB). The main suspect, believed to be part of a fraud syndicate, was arr

The accused bought a luxury sedan vehicle from a salvage company, which was written off, and registered it in his name. He later insured this vehicle in his name with a principal insurer. Shortly after the inception of the insurance policy, an accident was staged which resulted in the suspect being paid out approximately R1.2 million.

The following Modus Operandi was identified:

· The vehicle was written off by an insurance company.

· The vehicle was bought by the suspect.

· The vehicle was insured by him.

· The vehicle was then allegedly involved in a single vehicle accident.

Further arrests are envisaged as this is an ongoing investigation.

Hugo van Zyl, Chief Operating Officer of SAICB, is pleased with the outcome of the investigation. He is particularly proud of the co-operation between the SAPS, SAICB and the NPA which resulted in the positive results for the short term insurance industry.

Quick Polls

QUESTION

The shocking crime and motor vehicle accident statistics shared during a recent SHA presentation suggests that group personal accident and personal accident cover are a no-brainer. Do you agree?

ANSWER

Yes
No
Not sure
fanews magazine
FAnews April 2024 Get the latest issue of FAnews

This month's headlines

FAIS Ombud lashes broker for multiple compliance blunders
TCF… a regulatory misfit initiative?
The impact of NHI on medical malpractice insurance
Fixed versus variable: can you have your cake and eat it too?
The future world of work
Subscribe now