JAPANESE NON-LIFE INSURERS TO PROBE OVERCHARGING IRREGULARITIES

Five of Japan’s leading non-life insurers are going to launch investigations into possible overcharging for fire policies, and into whether payments received should have been exempted for nursing care expense policyholders, reports Yomiuri Shimbun. Aioi, Nipponkoa, NissayDowa, Sompo and Tokio Marine & Nichido Fire are to check whether the premium payments charged were accurate for the buildings’ composition. Mitsui Sumitomo has already been found to have deemed some timber-frame buildings, which use fire-resistant outer walls, to be wooden houses, which attract a 70% excess to standard premiums. As a result, Mitsui Sumitomo charged ¥30,600 rather than ¥17,600 annual premium, the report said. In a separate investigation, the insurers will be looking into charges for income-indemnity policies. Under nursing care expense insurance scheme rules, policyholders with income-indemnity insurance who have made a claim under the latter scheme are exempted from payment of nursing care expense policies. The five insurers are concerned that sloppy clerical procedures have meant that the nursing care policyholders have continued to be charged premiums. Mitsui Sumitomo said last month that is could have overcharged policyholders in about 13,750 cases, for a total of ¥70m.