Bigmotor May Lose Insurance Agency Registration; Japan’s Financial Watchdog Begins Revocation Discussions
13:00 JST, November 9, 2023
The Financial Services Agency (FSA) has begun discussions about revoking Bigmotor Co.’s insurance agency registration, it has been learned. The major used car sales dealer has been implicated in fraudulent auto insurance claims.
The FSA could issue administrative action against the dealer as early as this month, based on the Insurance Business Law. The financial watchdog has deemed actions by Bigmotor employees malicious. Vehicles that customers had brought in for repair were deliberately damaged and nonlife insurance companies were then charged with an inflated amount for the repairs.
Bigmotor is registered with the local finance bureaus as an insurance agency and signed contracts with major nonlife insurance companies to help customers sign auto liability insurance and sell them voluntary insurance. The FSA started conducting on-site inspections of Bigmotor facilities in September to check if it was violating any laws.
In October, the Land, Infrastructure, Transport and Tourism Ministry imposed administrative penalties — including suspension of business — on 34 maintenance facilities under the road transport vehicle law.
Bigmotor’s business performance has been deteriorating rapidly. It would inevitably suffer a further blow if it is no longer able to provide insurance agency services. Major insurance companies have already decided to terminate their agency contracts with the company.
"Business" POPULAR ARTICLE
-
Japan Business Circle Calls for China Resuming Visa-Free Travel; Keizai Doyukai Visit to Country Marks 1st in 8 Years
-
Major Start-Up Support Center Station Ai Opens in Nagoya; ¥15.3 Bil. Facility Built to Bring Together Emerging Companies
-
Japan’s Major Carmakers to Review Production Bases After Trump Win; Mexico Manufactured Vehicles Could be Hit by Tariffs
-
Japan’s Economy Expands Annualised 0.9% in Q3 on Tepid Capex
-
Japan’s Sumitomo Mitsui Offers New Hires Sure Path to U.S., U.K. Branches, with 40% of Bank Revenue Already Coming from Abroad
JN ACCESS RANKING
- Streaming Services Boost Anime Popularity Overseas; Former ‘Geeky’ Interest More Beloved Among Gen Z than 3 Major U.S. Sports
- Malaysia Growing in Popularity as Destination for Studying Abroad; British-style Education Available at Low Cost
- ‘Women Over 30 Would Have Uteruses Removed’; Remarks of CPJ Leader, Novelist Naoki Hyakuta Get Wide Attention
- Japan Business Circle Calls for China Resuming Visa-Free Travel; Keizai Doyukai Visit to Country Marks 1st in 8 Years
- Japanese Sneakers Making their Presence Known with Innovative Designs; Drawing on Retro Inspiration for New Styles