Financial Supervisory Service and Jeju Institutions Join Forces to Eradicate Rental Car Insurance Fraud in Jeju Region
[Asia Economy Reporter Changhwan Lee] The Financial Supervisory Service, Jeju Police Agency, Jeju Special Self-Governing Province Office, and three other institutions announced on the 28th that they have signed a business agreement to investigate and prevent rental car insurance fraud in the Jeju area.
The agreement was prepared in response to concerns about the spread of insurance fraud due to increased travel demand following the lifting of COVID-19 social distancing measures and the expansion of car-sharing services (such as Socar), which have led to increased rental car usage.
In the case of rental car accidents, damages such as insurance premium surcharges are passed on to rental car companies rather than the suspects, increasing the incentive for insurance fraud. Insurance premium surcharges on rental car companies lead to higher rental fees, which can cause harm to many innocent consumers.
In particular, Jeju has the highest proportion of rental cars relative to registered vehicles nationwide (37.9%), making it relatively vulnerable to rental car insurance fraud.
Through this agreement, each institution plans to cooperate in detecting rental car insurance fraud in the Jeju area and conducting efficient investigations, as well as mutually collaborating to strengthen publicity for insurance fraud prevention.
The Financial Supervisory Service will enhance support for investigations through the Insurance Fraud Awareness System (IFAS), plan prevention and publicity activities, and promote related institutional improvements, while the Jeju Police Agency will conduct swift and fair investigations of suspects.
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A Financial Supervisory Service official emphasized, "We will continue to maximize the expertise and work experience of each institution to prevent rental car insurance fraud in the Jeju area and strengthen the cooperative system among institutions through information sharing such as insurance fraud investigation techniques."
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