Scandal-hit major used car dealer Bigmotor is suspected of having concluded fictitious automobile insurance contracts, it was learned Sunday.

According to people familiar with the matter, a Bigmotor outlet in Fukui Prefecture was found to have fabricated insurance contracts for vehicles including one scheduled to be scrapped. The act, apparently intended to boost the number of insurance contracts, may constitute a violation of the insurance business law.

The revelation came on top of an investigation report by outside lawyers that showed Bigmotor employees padded maintenance fee claims to nonlife insurance firms by deliberately damaging cars.