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.

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.

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