Hearing to revoke Bigmotor's insurance agent registration

Japan's Financial Services Agency has arranged for a major used car dealer to undergo a hearing before revoking its registration as an insurance agent. Bigmotor was found to have filed fraudulent insurance claims for unnecessary vehicle repairs.

The arrangement to hear opinions from Bigmotor was made on Tuesday. The agency said it had received a statement of facts that Bigmotor submitted. The company did not attend the hearing.

Under the Insurance Business Act, the Financial Services Agency held on-site inspections at the company from September to November 10.

It concluded that the company had management problems. The agency indicated its intention to revoke the company's registration on the last day of this month. That's the severest administrative penalty.

Bigmotor commented that it will deal with the matter properly by following the guidance of the agency and the local finance bureau.

The transport ministry also held on-site inspections of Bigmotor outlets in October under the road trucking vehicle law.

As a result, it revoked their automobile inspection designation, and suspended their maintenance operations. These actions effectively limit Bigmotor's business operations to the sale of used cars.