Business

Tokio Marine to launch probe of car insurance products sold by Japan Post

JIJI

Tokio Marine & Nichido Fire Insurance Co. will conduct a probe into a car insurance products that have been sold by Japan Post Co. on commission, it has been learned.

The move to launch the survey on the actual situation of the products, which were co-created by Tokio Marine and four other major nonlife insures, came after post offices nationwide were found to have engaged in inappropriate sales practices for insurance products of Japan Post Insurance Co.

While automobile insurance policies are considered to be immune to improper contracts as such policies, with short contract periods, are regularly renewed, Tokio Marine, which is the managing underwriter for the product, will voluntarily check to see whether there were unfavorable conditions for customers.

Post offices, run by Japan Post Co., sell the product to customers at their counters. A total of some 97,000 contracts for the policy have been signed so far.

In addition to checking the content of these contracts, Tokio Marine will look into whether there were any inappropriate cases in some 27,000 subscriptions of an original accident insurance product of the insurer that has also been sold at post offices on commission.

Elsewhere in the Japanese insurance industry, Nippon Life Insurance Co. and Sumitomo Life Insurance Co. have already started probes into foreign currency-denominated variable annuity insurance products that have been sold at post offices to check for any inappropriate contracts.

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