No life insurance for yakuza

10/26/2011
By

TOKYO (majirox news) — Life insurance companies will include a provisional clause in their guidelines which allows them to deny coverage to the yakuza, Japan’s organized crime groups, according to life insurance industry officials.

The Japanese insurers will need approval for the provision by Japan’s Financial Service Agency (FSA), which they are expected to receive. Once the provision is approved, it will be implemented immediately.

The clause will allow insurance companies to cancel payments for injuries or death if the person is a member of a crime group. In other words, the insurer will have the right to refuse to cover anyone who belongs to a gang, which is involved in fraud or other criminal activities. They could even refuse to cover a person with a tattoo that is recognized as a symbol of gang membership.

Additionally, they can also deny or cancel a policy if it is learned that the person has provided false information about being a gang member.

In the past, if a person who was a gang member signed a contract with an insurance company, the company would be obligated to pay.

About 45 major life insurance companies who belong to the Life Insurance Association in Tokyo created the provision to deny life coverage to members of crime groups. They describe these groups as anti-social elements of society.

Once approved, each company will implement the provision, allowing companies to refuse payment or unconditionally cancel an individual’s policy.

In addition, insurance policy holders or beneficiaries will not be able to collect life insurance if it is learned that they are involved in organized crime.

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