Clampdown on staged car accidents leads to increase in reported cases

In the last two months, five people have been jailed and at least six more are due to appear in court over their alleged involvement in staged car accidents, reported The Straits Times.

This follows a clampdown by insurers who have set up special investigation units in a bid to slash fraudulent insurance claims which have totalled more than $140 million annually for the past three years.

'Joseph' - whose real name cannot be used as he is assisting with Commercial Affairs Department investigations - has been involved in more than five staged accidents here after being sucked in by the lure of 'fast cash'. He said the masterminds behind them can rake in more than $30,000 per 'accident'.

Joseph revealed that the masterminds are often owners of car workshops. Some would arrange for a driver to brake his car suddenly, causing a chain collision involving other vehicles. These workshop owners would then stop their cars near the accident scene to offer their services to those involved in the accident.

One hot spot for induced accidents is the Pan Island Expressway (PIE) towards Changi Airport, near Eunos Flyover, revealed Joseph. "There is an overhead bridge near the Eunos exit where the coordinator of the accident would be standing and watching the traffic," said Joseph. "He would then give the signal to the driver as to when he should jam on his car brakes. Usually they would operate between 4:30pm and 6:30pm when traffic would be heavy," added Joseph.

Joseph also revealed that Bukit Timah Expressway (BKE) towards Changi Airport, near the Dairy Farm exit, is another hot spot. Currently there are more than 10 workshops 'red-flagged' by insurers, the source said - and the list continues to grow.