The Financial Services Agency (FSA) of Japan is reportedly deliberating the cancellation of the insurance agent registration of Bigmotor, the used car dealership embroiled in an insurance fraud case.
The FSA is expected to potentially withdraw the registration as early as this month, according to the sources cited in a Nippon report.
The agency's decision leans towards stringent disciplinary measures, considering findings that indicate a pervasive presence of dishonest practices within the company. Notable among these practices was the inflation of insurance claims through intentional damage to customers' vehicles, the sources said.
Since initiating an on-site examination in September, the FSA uncovered further issues related to Bigmotor's governance, including lapses like the omission of board meetings.
The disgraced used car dealer has already been dealt a blow recently by the country’s transport ministry as Bigmotor had to cease operations at 34 of its vehicle maintenance outlets following findings that it had overcharged for repair and inspection services.
Its major insurance partners, Sompo Japan and three others, are still in hot water as well, as reports surface that over 30% of insurance claims submitted to Bigmotor may have been fraudulent.
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