Insurance Agent, 22 Others Indicted for Staging Accidents to Defraud NT$2 Million

(CNA, Taipei, June 10) A Fubon Life insurance agent surnamed Chen is suspected of collaborating with policyholders and others to stage fake car accidents to claim insurance payouts, fraudulently obtaining over NT$2 million. The Shilin District Prosecutors Office today indicted Chen and 22 others for offenses including fraud and is seeking a sentence of 3 years and 6 months for Chen.

According to the indictment, Chen, an agent for Fubon Life Insurance, was familiar with the application and claims processes for various insurance products. He knew that the review standards for travel accident insurance were relatively lenient and that by taking out multiple accident policies or utilizing third-party liability insurance, combined with high-cost self-paid medical treatments, one could receive duplicate compensations.

Furthermore, Chen learned that the new "PRP (Platelet-Rich Plasma)" therapy, which involves extracting concentrated growth factors from one's own blood for tissue repair and pain relief, is not covered by national health insurance. As a fully self-paid item, it could significantly inflate the claim amounts for duplicate or third-party liability claims.

Prosecutors stated that Chen saw this as a lucrative opportunity. To construct the necessary medical justification and prevent insurance companies from denying claims, he created a model of mutual support and collaboration to stage fake accidents for real insurance fraud. In 2024, he collaborated with insurance agents surnamed Wu, Ting, and Lin, and recruited four individuals, including a man surnamed Hsueh, to help stage the fake car accidents and carry out the scheme.

Prosecutors said that after the insurance contracts were established, Chen and the others would jointly stage a fake car accident to obtain a "Road Traffic Accident Party Registration Form" from the police and a "Diagnosis Certificate" and "Self-Paid Expense Receipt" from a clinic. They then simultaneously filed claims with multiple insurance companies to obtain illicit payouts.

Prosecutors calculated that Chen and his group staged six fake car accidents using this method, defrauding over NT$2 million in insurance money. Some claims were unsuccessful as insurance companies detected irregularities.

Fubon Insurance, Hua Nan Insurance, and Shin Kong Insurance filed complaints, and the case was transferred by the Taipei City Police Department's Criminal Investigation Division to the Shilin District Prosecutors Office for investigation. The Shilin office concluded its investigation today, indicting Chen and 22 other defendants for charges including fraud and attempted fraud.

Prosecutors argued that Chen and fellow agents Lin and Ting, as insurance professionals, failed to use their expertise to promote the development of the insurance market, instead using their experience to commit crimes. They requested the court to sentence Chen to a heavy term of 3 years and 6 months for each offense, and sought 2 years and 6 months for both Lin and Ting. Sentences were also sought for the other defendants.