Tokyo (Jiji Press)—Scandal-hit major Japanese used car dealer Bigmotor Co. is suspected of having concluded fictitious automobile insurance contracts, it was learned Sunday.

According to people familiar with the matter, a Bigmotor outlet in Fukui Prefecture, central Japan, was found to have fabricated insurance contracts for vehicles including one scheduled to be scrapped. The act, apparently intended to boost the number of insurance contracts, may constitute a violation of the insurance business law.

The revelation came on top of an investigation report by outside lawyers that showed Bigmotor employees padded maintenance fee claims to nonlife insurance firms by deliberately damaging cars.

On Friday, the Financial Services Agency summoned executives of Bigmotor to the Kanto Local Finance Bureau to hear whether the company was involved in inappropriate insurance sales and whether its compliance system was functioning properly.

The FSA is investigating whether there was any problem with Bigmotor’s operations as an insurance agent and is expected to order the company to submit a report on the matter shortly.

Bigmotor, as an insurance agent, sells auto insurance products offered by nonlife insurers. The company urges buyers of used cars to take out voluntary insurance. Bigmotor gets sales commissions for insurance contracts won by the company.