Thirty-four people allegedly involved in a "bone-breaking" medical insurance scam were arrested by Italian police on Monday in Palermo, Sicily.

The perpetrators allegedly broke people's legs and arms and staged road accidents in exchange for part of their insurance payout. The scam was foiled through a joint special operation carried out by police teams in Palermo and Taranto. It was first uncovered when one individual died after being beaten, police say.

Those in on the fraud included false witnesses to the accidents, doctors providing fake medical reports and physiotherapy centers, police said. Among the thirty-four people detained include a Palermo lawyer who managed the legalities of the false claims.

The operation, named "Tantalobis", led to the arrest of another 11 people with the same charge in August.

Details of the scheme were presented by Italian police to the media. "Members dropped heavy cast-iron disks, such as those used in gyms, onto the limbs of victims, in order to cause fractures that often damaged the parties involved, forcing them, sometimes for long periods, to use crutches and wheelchairs," police said.

Hundreds of people remain under investigation. Police said statements made by some of the collaborators arrested last summer have been important in handling the case.

The criminal enterprise focused on drug addicts, alcoholics, the mentally ill, and others "on the margins of society" in financial need.

The members promised victims they would receive "easy and large amounts of money". More than 50 victims have made accusations against the members of the organization.

Once the victims had been chosen, they were transported to apartments or warehouses and passed into the hands of violent gang members who inflicted the injuries.

The method was always the same: the victims were anesthetized with ice or drugs, before their limbs were placed between blocks of cement, which were then hit with weights or thrown violently, so as to cause breaks or fractures to bones.

Fake car accidents were later staged in areas of the city not covered by CCTV cameras, and gang members would take the victims to hospital, posing as relatives.

After transferring the injured to hospitals, members would take care of the presentation of the claims for compensation with the insurance companies.

The victims were allegedly paid hundreds of euros under the scheme, despite their insurance claims being worth thousands. The scheme brought in more than 2 million euros ($2.26 million) a year, local media reported.