Japanese used car dealer reports insurance fraud

TOKYO: Japan's major used car dealer Bigmotor might face further investigation following a report that its employees were instructed to commit insurance fraud, reported Xinhua.

Nearly 60 per cent of 382 surveyed employees at the Tokyo-based dealer and repair factory chain said they had been ordered by their supervisors to pad car repair charges to receive bigger insurance payouts, according to an investigation report recently released by the firm.

The 50-page report revealed that there were cases of intentionally damaging cars in order to inflate repair costs and fraudulently claiming insurance claims.

Some employees broke the cover of the headlight, scratched the car body with a screwdriver, scratched the car body with candles and sandpaper, and even hit the car body by swinging a golf ball in a sock, said the report.

According to the report, a total of 1,198 cases, or 44 per cent of 2,717 sampled cases were suspected of some kind of inappropriate act.

The report was based on a probe conducted by a panel of external lawyers tasked with reviewing the fraud cases.

Japanese Finance Minister Shunichi Suzuki told reporters today that it would be "unforgivable" if the report is true, adding that the ministry would respond appropriately, according to local media outlets.

Japanese Minister of Land, Infrastructure, Transport and Tourism Tetsuo Saito said a public hearing on Bigmotor is expected soon and on-site inspections of problematic workplaces might be carried out.

Three major Japanese non-life insurance companies that received the fraudulent claim have demanded that Bigmotor return the excess payout. — Xinhua