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Japan Post finds 6,327 insurance contracts in violation of rules

Christian Fernsby |
Japan Post Holdings Co. said its probe has found 6,327 suspected cases of insurance contracts that violated the law or in-house rules in the five years through March, in a blow to the state-backed postal and financial services group as it seeks to regain public trust.

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Japan Post said that of the total, more than 20 percent or around 1,400 may have been in violation of the insurance business law as false explanations were provided or the possibility that subscribers would be left at a disadvantage was concealed.

The interim report was based on an investigation looking into 183,000 suspected cases of improper selling by unit Japan Post Insurance Co.

The investigation had only collected responses from 68,020 contract holders, or 40 percent of the total, as of Friday and Japan Post will continue to look into the remaining 115,000 cases.

The report also showed that 26,036 clients are demanding redress after signing disadvantageous contracts, including refunds for being double charged for new and terminated policies.

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