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22,000 double payment cases found at Japan Post Insurance

Jiji PressTOKYO (Jiji Press) — About 22,000 cases have been found at Japan Post Insurance Co. in which customers made double payments of insurance premiums for their new and old contracts for six months or longer, informed sources said Tuesday.

Japan Post Insurance is investigating those cases, suspecting that post office employees prevented customers from canceling their old insurance contracts for at least six months in an attempt to receive the full amount of sales incentives, the sources said.

The questionable practice took place between April 2016 and December 2018.

The company, an affiliate of Japan Post Holdings Co., outsources sales of its insurance products for individuals to workers at post offices, run by Japan Post Co., also a member of the postal service group.

According to Japan Post Insurance, such post office workers receive sales incentives based on the number of insurance contracts they win. But the amount of the allowances will be halved if old contracts are canceled within six months of the conclusion of new contracts by the same customers.

In many of the some 22,000 cases, old contracts are believed to have been canceled more than six months after new contracts were signed so that the incentives would be paid in full, the sources said.

The incentives will be cut by half also in case new policy contracts are concluded within three months of the cancellations of old contracts.

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