Bigmotor scandal exposes thousands of fraudulent claims

About 30% of claims investigated in the past 5-8 years were fraudulent.

Insurers have identified tens of thousands of fraudulent claims from Bigmotor, a now-defunct used car dealer accused of inflating repair costs by damaging vehicles intentionally and using other deceptive methods, reported Asahi.

Four major nonlife insurance companies—Sompo Japan Insurance, Mitsui Sumitomo Insurance, Tokio Marine and Nichido Fire Insurance, and Aioi Nissay Dowa Insurance —have found about 65,000 claims from Bigmotor to be fraudulent.

The insurers have reviewed approximately 236,000 claims filed over the past five to eight years, with nearly 80% of these claims investigated by early July. Of the claims reviewed, about 30% were deemed fraudulent.

The insurers and Balm, which took over from Bigmotor and was renamed Wecars, have only agreed on adjustments for about 1,700 claims, or 2.6% of the total. Balm has halted its own investigation, citing insufficient archival records for accurate assessment.

Balm also decided to resolve disputes through court mediation moving forward.

Bigmotor was found to have padded insurance bills by intentionally damaging vehicles—such as hitting them with golf balls in socks, scratching them with screwdrivers, or breaking headlight covers—to inflate repair costs. The scandal led to higher insurance premiums for motorists.

The insurers conducted independent investigations and compared findings with Balm to agree on refund amounts. Balm declined an interview request but stated on 11 July that it would discuss and respond to insurance claims in good faith.