, Japan
Photo by Tingey Injury Law Firm from Unsplash

Japanese auto dealer allegedly forged insurance contracts: report

FSA is currently investigating whether Bigmotor's operations as an insurance agent were problematic.

Japanese used car dealer, Bigmotor Co., is suspected of engaging in fictitious automobile insurance contracts, as reported by Jiji Press.

The company's outlet in Fukui Prefecture, central Japan, was reportedly found to have fabricated insurance contracts, including for vehicles slated to be scrapped. 

This act, apparently aimed at inflating the number of insurance contracts, may be a violation of the insurance business law.

READ MORE: Bigmotor Suspected of Fabricating Insurance Contracts

As a result of these revelations, the Financial Services Agency (FSA) summoned Bigmotor's executives to the Kanto Local Finance Bureau to inquire about inappropriate insurance sales and the effectiveness of the company's compliance system.

Further, an investigation report by external lawyers revealed that Bigmotor employees inflated maintenance fee claims to nonlife insurance firms by deliberately damaging cars.

ALSO READ: Profitability of Japanese non-life insurance to recover in 2024

The FSA is currently investigating whether Bigmotor's operations as an insurance agent were problematic and is expected to order the company to submit a report on the matter soon.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.