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Japan: Executives pay the price for unpaid insurance benefits

Date: 22 Oct 2005

Senior executives of life insurance company Meiji Yasuda have resigned to take responsibility for a scandal over the firm's failure to pay insurance claims. Company President Ryotaro Kaneko, Chairman Mikihiko Miyamoto and Deputy President Yukichi Ozawa are to step down, although they claim that they had no knowledge of improperly refused payments.

President Kaneko admitted that payment failures had occurred as a result of a failure of internal mechanisms that were his responsibility.

Investigations have suggested that there have been over 1,000 cases of unpaid insurance benefits, to an amount over 5bn yen, which may have been the result of the company adopting a policy of limiting the number of pay outs.

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