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Friday, June 25, 2010

16 To Be Charged For Motor Vehicle Insurance Fraud

Ten men and six women, aged between 20 and 65 years, will be hauled to Court for making fraudulent motor vehicle injury claims against motor vehicle insurance companies.

The Commercial Affairs Department (CAD) received information from a motor vehicle insurance company in 2009 about suspected fraudulent personal injuries claims made against the motor insurer for road traffic related accidents.

Arising from the CAD investigation and the cooperation of the insurance companies, the 16 suspects will be charged in Court on 25 June 2010 . The suspects will be charged for the offence of Cheating under Sec 420 of the Penal Code Cap 224. The charges of Cheating relate to allegations that the suspects had conspired to cheat the insurers by engaging law firms to initiate personal injuries proceedings against the insurers, in order to deceive the insurers into believing that the suspects were passengers in motor vehicles which were involved in motor accidents and that they had sustained injuries due to the accidents. Three of the 16 suspects will also be charged for Giving False Information to a Public Servant under Sec 182 of the Penal Code Cap 224. The three had allegedly given false information to the police about the motor accidents.

Anyone convicted for Cheating faces imprisonment which may extend to 10 years and shall also be liable to a fine . Anyone convicted for Giving False Information to a Public Servant faces imprisonment which may extend to one year or with fine of up to $5,000, or with both.

Director of the Commercial Affairs Department, Mr. Ong Hian Sun lauded his officers for their efforts in solving the cases. He added, “Let this be a strong reminder to would-be criminals that Police take a very serious view of such offences and will not hesitate to come down hard on perpetrators of such crimes.” MORE

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