American Home Assurance Co. (Japan) said Monday it has failed to make due payments to policyholders in 13,205 cases totaling about ¥370 million.
The cases involved refunds that should have been paid for the May cancellation of contracts that were sold between June 1984 and October 2006, the nonlife insurance company affiliated with American Insurance Group Inc. said.
The company, known as American Home Direct, found the payment failures after an in-house investigation.
American Home Assurance said it expects to pay a total of around ¥600 million, including delinquent charges, to policyholders concerned.
The company was ordered by the Financial Services Agency in November 2005 and March 2007 to improve its business after its failure to pay due insurance money to policyholders.