In exception, gangsters to be allowed to buy auto insurance

Kyodo

Property and casualty insurance companies plan to let crime syndicate members buy auto insurance so that victims can be compensated in the event a gangster causes an accident, industry sources said.

The move comes as the financial sector is otherwise shunning dealings with organized crime groups after a scandal last year in which Mizuho Bank was found to have provided loans to yakuza through a group credit company.

Beginning this month, casualty insurers will allow people to buy auto insurance even if the prospective customer is suspected of being a gangster, according to the sources.

The Financial Services Agency is expected to endorse the industry policy as an exception to the rule, but a senior FSA official said this doesn’t mean rules against dealing with organized crime groups will be relaxed.

Property and casualty insurance companies will continue to shun gangsters who want to buy other insurance products, including fire and business-related ones, according to the sources.