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Man arrested for string of cash-for-crash schemes

chinadaily.com.cn | Updated: 2013-07-25 21:35

Shenzhen police recently detained a man who is suspected of purposefully colliding with vehicles in order to claim insurance payments.

The insurance fraud case is one of the largest in recent years, involving 334 traffic accidents and nearly 1 million yuan ($163,000), according to Shenzhen police.

In March, several insurance companies in the city told police that a man surnamed Li had been repeatedly claiming insurance payments as a third party in traffic accidents. Police launched an investigation and detained Li one month later.

Li told police that his method was simple: During rush hours, he accelerates into a vehicle in front of him that is in the process of changing lanes at intersections. Drivers changing lanes in these cases would be held responsible.

Li cheated nearly 1 million yuan from insurance companies from November 2008 to April of this year.

Police suggest that drivers call police when they are involved in a traffic accident to prevent such frauds.

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