Police bust life insurance fraud gang

The National Investigation Office (NNI) has rounded up a criminal gang specializing in life insurance fraud, reports Hetek.hu. The case was launched by Allianz Hungária Zrt which reported in June that a person had tried to claim life insurance on an individual who was still alive. An investigation revealed that two insurers had been targeted by perpetrators who caused damage of a total of over Ft 180 million (roughly €680,000).

An Allianz client set up life insurance for Ft 20 million in May 2007. Early 2008, his wife reported he had died in an accident, but an internal investigation revealed that he had not passed away but was staying with his family in Italy. An autopsy report and other legal documents submitted by his wife turned out to have been forged. Further investigation by the insurer revealed that Allianz Hungária had been damaged on six occasions using the same method, and that the company paid roughly Ft 120 million to fraudsters.

It was also revealed that four of the seven insurance contracts were brokered by the same agent, leading the NNI to suspect the agent had been involved in planning and carrying out the crimes. The NNI then found that similar instances of fraud had also affected another insurer. In total, ten similar cases were investigated.

The NNI has launched proceedings against 19 individuals, six of whom have been taken into custody and two of whom are under preliminary arrest.

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