An arrest was made in the second week of October after a 4 month long investigation by members of the Organised Crime Port Shepstone and The Insurance Crime Bureau.
The main suspect, believed to be part of a fraud syndicate, was arrested on the morning of 17 October 2012 for fraud. The syndicate, operating in the KZN area, was exposed as a result of intensive investigation by SAPS, The Insurance Crime Bureau, AFU, and the assistance of the National Prosecuting Authority (NPA).
The accused bought a luxury sedan vehicle from a salvage company, which was written off, and registered it in his name. He later insured this vehicle in his name with a principal insurer. Shortly after the inception of the insurance policy, an accident was staged which resulted in the suspect being paid out approximately R1.2 million.
The following Modus Operandi was identified:
- The vehicle was written off by an insurance company
- The vehicle was bought by the suspect
- The vehicle was insured by him
- The vehicle was then allegedly involved in a single vehicle accident
Further arrests are envisaged as this is an ongoing investigation.
Hugo van Zyl, Chief Operating Officer of The Insurance Crime Bureau, is pleased with the outcome of the investigation. He is particularly proud of the co-operation between the SAPS, The Insurance Crime Bureau and the NPA which resulted in the positive results for the short term insurance industry.