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July 2, 2020

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71 held for defrauding insurance companies

A total of 71 suspects have been caught for allegedly defrauding insurance companies, Shanghai police said yesterday.

A group of suspects found employment in these companies, while other suspects acted as customers to purchase expensive insurance plans, according to police.

After the “agents” received bonuses for selling the insurance plans, the so-called customers would file malicious complaints to get the money back, the police said.

In one case, the insurers were cheated out of over 16 million yuan (US$2.3 million), authorities claim.

Police say this is the first case of its kind ever busted in Shanghai.

Police in the Pudong New Area received a report from an insurance company in Waigaoqiao area earlier this year, saying that some clients who had purchased premium plans had laid malicious complaints to receive hefty pay-outs.

By analyzing transaction records and insurance account information, police uncovered the fraud suspects.

Police said the gang has been growing in size and honing their scheme since 2014.

The suspects who purchased the expensive insurance plans were actually low-income people, and they filed complaints not through the insurers but by seeking redress from the insurance regulatory commission so as to pressure the companies into making quick pay-outs, police said.

The suspects were caught in Sichuan, Jiangsu, Zhejiang and Anhui provinces.


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