Japan Post Insurance Co. and Japan Post Co. will look into all outstanding life insurance policies sold by them to examine whether the terms of the contracts meet the demands of customers, company officials said Monday.
The move follows the recent revelations that inappropriate sales practices by the companies are believed to have harmed the interests of more than 90,000 policyholders.
The two Japan Post Holdings Co. units will send letters or make phone calls to customers, or visit them when necessary, to check their policies, the officials said.
The companies will pay back premiums if insurance policies are found not to meet customers’ demands, the officials said.
The inappropriate practices led to situations where policyholders become uninsured after their applications to change policies were rejected and policyholders paid premiums on both previous and new insurance policies.
Outstanding life insurance policies sold by the companies to individual customers total about 29 million.
Due to the scandal, the companies said they will suspend promotions for all Japan Post Insurance products until the end of August.
Japan Post Insurance said Sunday that it has no plans to revise its estimate for ¥93 billion in consolidated net profit for the year ending in March 2020. A fall in sales of new insurance policies will be offset by a decrease in sales costs, the company said.
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