In this case, a wreck of a luxury vehicle was bought by an individual (let’s call him Mr. Y) from an insurance salvage agent. The vehicle was registered, issued with a false roadworthy certificate and reregistered as a used vehicle under another subject’s name (Mr. X). Mr. X applied for and was issued a policy for household and motor insurance cover by an insurer.

A short while later Mr. X reported an accident, alleging that he was driving on the M4 highway near Umhlanga when a pedestrian crossed the road in front of him. He swerved to the left in order to avoid hitting the pedestrian and lost control of the vehicle, resulting in damages to the vehicle. A claim was submitted and paid to Mr. X by the insurer. After the insurance claim was settled, the bulk of the payment was transferred from Mr. X’s bank account to that of a third subject, Mr. Z. Another smaller amount was also transferred into the account of Mr. Y.

The case is currently in court, where the accused submitted a section 105 plea bargain with the state, and will appear in court on the 23 May 2013 for sentencing. The approximate saving for the industry will translate into R1.2 million.