FSA Inspects Bigmotor, Sompo Japan over Insurance Fraud Scandal
Tokyo, Sept. 19 (Jiji Press)--Japan's Financial Services Agency launched on-site inspections Tuesday of scandal-hit Bigmotor Co. and its business partner Sompo Japan Insurance Inc. as part of an investigation into fraudulent auto insurance claims by the major used car dealer.
FSA inspectors entered Sompo Japan's head office in Tokyo's Shinjuku Ward and a Bigmotor outlet in the western Tokyo city of Tama Tuesday morning. The inspection is expected to take several months.
At a press conference after the day's cabinet meeting, financial services minister Shunichi Suzuki said the FSA intends to "carry out an in-depth fact-finding investigation in order to identify the root cause of the problem."
Bigmotor has been found to have inflated insurance claims by deliberately damaging vehicles customers left in its care for repairs.
The FSA will conduct a detailed investigation into the cause of the fraud and examine whether there were problems in terms of policyholder protection. If problems are found during the inspections, the agency will consider issuing administrative punishments, such as business improvement orders, against the companies.