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Staged car accident scams, commonly known as “crash-for-money” scams, have become increasingly common in Hong Kong recently.
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Scammers use their superb acting skills to stage car accident scenes, then wait an extended period after the accident before demanding huge sums of money in compensation.
Some car owners, hoping to protect their No Claim Bonus, choose to settle privately, thinking it will save them trouble “to lose some money to avoid calamity,” as the Chinese saying goes.
However, this approach plays right into the scammers’ hands and often leads to even greater losses.
I believe that if this malicious trend is not stopped, the damage will extend far beyond car owners’ wallets – it will erode the integrity and rule of law in Hong Kong.
Private settlements may seem to resolve the issue quickly on the surface, but they often create endless future problems. Such agreements usually lack legal enforceability.
If the scammer later claims new injuries or repeatedly reopens the case, the car owner is left holding only a worthless private settlement receipt.
Insurance companies may refuse to compensate, and the courts are unlikely to recognize the deal.
In the end, the owner suffers double losses and falls into an endless abyss.
Some car owners worry that reporting the incident will affect their NCB. In fact, if the case is verified as fraudulent, insurers generally do not deduct the bonus.
However, different insurance companies have varying procedures, which understandably causes hesitation. The insurance system should serve as a strong shield for car owners, not a burden.
Insurers should adopt more flexible and empathetic approaches when handling claims, ensuring that policyholders’ NCB is protected rather than being mechanically deducted upon reporting.
To eradicate these scams, law enforcement must intensify their crackdown, while the insurance industry should optimize reporting mechanisms to make them more user-friendly. Law-abiding citizens should not be forced to submit to crime out of fear of complicated procedures or higher premiums.
Reporting to the police immediately is the only reliable way to protect the car owner.
The Honorable Jeffrey Lam Kin-fung is a non-official member of the Executive Council and chairman of the Vocational Training Council
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
