Japan Post Insurance has admitted that the company has charged double premiums for life insurance policies from thousands of customers between April 2016 and December 2018.
As per the preliminary report, the insurer collected double premiums on nearly 22,000 insurance policies, even after customers signed up for new plans and terminated the old ones.
Reports emerged that some employees of Japanese insurer did not cancel old policies due to which the insureds had to pay premiums for both the new as well as the old insurance plans.
Such practices were being used for at least six months now. In order to gain full sales incentives based on the number of insurance contracts, some employees intentionally did not cancel the old contracts for a period of six months. If they did so, their signing bonuses were cut to half.
Japan’s Financial Services Agency is considering launching a probe into the insurer’s sales practices and will announce measures to safeguard customers’ interest.
If the Japan Post Insurance is found using improper means to push sales, it might face monetary penalties.
Japan Post Insurance sells its insurance plans through the network of its parents company Japan Post Holdings. Due to easy availability, nearly one-third of its customers are aged 70 or older.