Last year, I wrote an article “Who causes the increase of motor insurance premium“. I received some good feedback from the readers and I am glad that the public has started to be aware that car insurance fraud affects not just the insurance companies, but a large proportion of the public as well, because car insurance fraud is one of the key factors that drive up the costs of motor vehicle insurance premiums.

Here is a real case of such fraud of Bogus claims!

In 2010, a car insurance fraud ring of 8 people were discovered to be behind an insurance scam involving staged accidents, phantom passengers and false insurance claims. Led by Phang Choon Meng, 38, this group had cheated companies, including NTUC Income and AXA Insurance, of nearly $96,000.

On occasion, Phang would stage a traffic accident by deliberately jamming on the brakes of his car in front of a lorry driven by unsuspecting foreign workers. Then he would coach his accomplices to pretend that they had been inside the car, so they could fool doctors to obtain medical certificates and file personal-injury claims.

While examining five motor injury claims, an NTUC Income executive suspected that they were fake and lodged a police report. Thus, the entire syndicate was arrested, prosecuted and charged. Mastermind Phang was jailed 27 months whilst seven of his accomplices were jailed between two and six months.

The social impact of car insurance fraud on everyone will be highlighted a program called “Car Insurance Fraudsters” which will be broadcast on Tuesday, 30 April 2013, on Channel 5 from 10pm to 10.30pm

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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