13 People Referred for Inflating Water Leak Damage to Fraudulently Claim Insurance Money

A group that induced insurance subscriptions for apartment units with water leakage damage, then exaggerated the damage to carry out construction and embezzle insurance money, has been handed over to the prosecution.

The Anti-Corruption and Economic Crime Investigation Unit of the Gwangju Metropolitan Police Agency announced on the 26th that they have sent 13 people, including A (57), the CEO of a water leakage repair company, and B (39), an assistant to an insurance adjuster, to prosecution without detention on charges of embezzling daily liability insurance money (violation of the Special Act on the Prevention of Insurance Fraud, etc.).

A is suspected of inducing daily liability insurance subscriptions for units with water leakage between 2021 and 2022, then fabricating the occurrence of water leakage damage after the insurance subscription to claim insurance money.

A conspired with the assistant insurance adjuster to manipulate the timing of the water leakage damage to 3 to 4 months after the insurance subscription, falsified the estimate to a higher amount, carried out the construction, and claimed about 100 million won in insurance money.

In this process, the apartment management office manipulated the timing of the water leakage damage complaint reception and obtained consent from residents living in the units below the leaking units for construction delays.

The assistant insurance adjuster and apartment management office staff who helped falsify the estimates and select the water leakage repair company received bribes amounting to 37 million won.

A Gwangju Metropolitan Police Agency official said, "Organized and specialized insurance fraud crimes are increasing," and added, "We will thoroughly investigate those involved and respond to additional crimes through cooperation with related agencies."

This content was produced with the assistance of AI translation services.