Reports from non-life insurance companies under investigation by the Financial Services Agency (FSA) of Japan have unveiled potential fraud in approximately 17,000 – or over 30% – of the 53,000 insurance claims submitted by the scandal-ridden used car dealer Bigmotor.
The investigating insurance firms — Tokio Marine & Nichido Fire, Sompo Japan, Mitsui Sumitomo, and Aioi Nissay Dowa – are collectively scrutinizing around 200,000 claims made by Bigmotor, according to a Nippon report.
The suspected fraudulent claims were detected between late August and late September. The proportion of these claims also surpasses the 15.1% indicated in Bigmotor's investigation report released in July.
Sompo Japan is in the process of reviewing approximately 90,000 insurance claims. Mitsui Sumitomo has a total of 47,000 claims to examine over the past five years, while Tokio Marine is scrutinizing 49,000 claims over a seven-year period. Aioi Nissay is conducting reviews on 21,000 claims over seven years.
Additionally, Bigmotor is conducting an internal review of the insurance applications it submitted to insurance companies. Both parties will ultimately determine the total fraudulent amount by comparing their respective documents.
The FSA investigations on the Bigmotor scandal are currently ongoing, while a separate probe is also being done on the same four non-life insurers over alleged cartel activities.
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