LCQ12: Claims relating to minor traffic accidents
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Question:
The media have recently reported that quite a number of drivers who were only involved in minor traffic accidents, or even accidents where their vehicles did not collide with any other vehicles, have been pursued by other road users through lawyers for substantial compensation. In this connection, will the Government inform this Council:
(1) as it has been reported that the demand letters received by individuals being claimed against in the aforesaid cases were all issued by the same law firm, whether, apart from these cases, the Government is aware of any similar cases that have occurred in recent years; if so, of the total number of cases reviewed by the authorities; among them, the number of cases found to be questionable, and whether such cases involved illegal "recovery agents"; if so, whether the Government has taken measures to combat these unlawful acts;
(2) as it has been reported that quite a number of claims did not involve any traffic accidents, and therefore the individuals being claimed against did not report them in a timely manner to the insurance companies which underwrote their third party liability insurance, potentially resulting in these insurance companies refusing to pay compensation in these cases, whether the authorities will require the insurance industry to review afresh the mechanisms or stipulations concerned for handling compensation in the light of such cases; and
(3) whether it will step up publicity and education in response to such cases so that all road users can clearly understand their own responsibilities and rights, thereby avoiding exploitation by lawbreakers and incurring losses?
Reply:
President:
The Hong Kong Special Administrative Region Government attaches great importance to the recent cases of suspected fraudulent insurance claims relating to traffic accidents and has taken a series of follow-up actions. Any acts of abuse of the insurance claim mechanism, exaggerated claims or conspiracy to defraud are serious offences. At present, the Police are carrying out investigations on the relevant cases. If any illegal acts are found, the Police will take resolute enforcement actions.
The reply to the Member's question is as follows:
(1) The Police noticed that some law firms lodged claims of traffic accidents on behalf of a number of claimants and that some claimants sought compensation for injuries allegedly sustained in multiple traffic accidents over the past few years. The situation aroused suspicions. In this connection, the Police have launched investigations and taken law enforcement actions promptly. To date, the Police have arrested four persons suspected to be involved in cases of fraudulent claims relating to traffic accidents and have searched a law firm with a court warrant.
The Commercial Crime Bureau (CCB) of the Police has all along been strengthening information exchanges and intelligence sharing with the industry through the Hong Kong Federation of Insurers (HKFI) and has been providing relevant training and conducting anti-deception publicity campaigns for the industry. In collaboration with the HKFI, the CCB has established an insurance fraud notification mechanism since 2012 to jointly combat illegal acts through the referral of suspicious cases. In 2025, the CCB received a total of 12 suspected insurance fraud cases referred by the HKFI. There were cases in the past in which successful enforcement actions were taken against insurance fraud. For example, in 2024, a woman was prosecuted and convicted of "having an intent to defraud" and was sentenced to nine months' imprisonment. The woman made a false statement after a traffic accident, claiming that she had suffered incapacity for work due to injuries sustained in the accident and lodged claims with an insurance company through a law firm.
Besides, the HKFI established the Insurance Fraud Prevention Claims Database (IFPCD) in 2018 to detect potential fraudulent claims. This enables insurers to initiate focused investigations promptly while ensuring the efficient settlement and payment of genuine claims.
The Insurance Authority (IA) encourages all insurers to participate in IFPCD, enhancing their capability of identifying fraudulent claims and safeguarding the interests of policyholders. The IA will continue to work closely with the HKFI and the insurance industry to ensure that all bona fide claims are handled in a fair and timely manner, while appropriate measures are adopted to combat fraudulent claims.
(2) The existing insurance regulatory framework requires an insurer to implement and maintain proper policies and procedures governing its claims handling processes, making sure that claims are handled fairly and promptly, and that policyholders are treated fairly.
Generally speaking, the reporting requirement stipulated in insurance policies should be "reasonable and practicable". Where a policyholder is, on an objective and reasonable basis, unaware of an accident or claim, insurers should, under the premise of adhering to the policies and procedures, consider the specific circumstances in handling the case. Therefore, the IA encourages policyholders to report all known traffic-related accidents to their insurers as soon as practicable, including vehicle theft and damage, bodily injury or third-party property damage, to safeguard their policy interests.
Moreover, the HKFI reminds policyholders to immediately report to their insurer upon receiving a summons for a traffic offence or a notice of a case reported to the Police even if the policyholders believe they are not at fault or the damage appears minor. This allows experienced professionals to manage any subsequent civil claims. Policyholders with questions about claims and reporting arrangements under their insurance policies are advised to consult their insurers.
(3) The Government has been adopting a multi-pronged approach in implementing publicity and education work with a view to enhancing road users' knowledge about their own rights and responsibilities when traffic accidents happen. The initiatives include the following:
(a) The Road Users' Code published by the Transport Department offers comprehensive guidelines and information to road users, including general notes on dealing with traffic accidents;
(b) By disseminating road safety information through various social media platforms, producing educational videos and infographics and distributing publicity leaflets, the Police call on members of the public to comply with traffic rules and be responsible road users; and
(c) Through various channels including official webpages, social media and featured articles, the IA and the HKFI provide policyholders with information regarding the rights and responsibilities of road users in claims relating to traffic accidents, points to note when lodging claims, anti-deception tips and information relating to the protection of interests of policyholders, so as to deepen their understanding of relevant protection and interests.
Ends/Wednesday, February 25, 2026
Issued at HKT 13:00
Issued at HKT 13:00
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