Tokio Marine president to resign over nonpayment

Tokio Marine & Nichido Fire Insurance Co. President Kunio Ishihara is expected to resign at the end of June to facilitate the major property and casualty insurer's efforts to regain the trust of policyholders, following a scandal involving nonpayment of insurance benefits, company sources said Saturday.

Ishihara, 63, is also likely to step down as president of Millea Holdings Inc., which owns Tokio Marine, the sources said.

Tokio Marine Senior Managing Director Shuzo Sumi, 59, is expected to take both posts, they said.

Ishihara also intends to resign as chairman of NHK's management committee, the sources said.

Tokio Marine failed to pay a total of some 390 million yen in insurance claims in 1,190 cases involving "third-sector" insurance products, which are medical, nursing-care and other insurance products that fall between traditional life insurance and property-casualty insurance policies.

The insurer in addition neglected to pay a total of 6.85 billion yen in insurance benefits for 85,000 automobile and other property-casualty insurance products.

It also overcharged policyholders on premiums for fire insurance covering residences highly resistant to fire.

In June 2001, Ishihara became president of Tokio Marine & Fire Insurance Co., which merged with Nichido Fire & Marine Insurance Co. to create Millea Holdings in April 2002.

The change of presidency at Millea and Tokio Marine is slated for the end of June after a general meeting of Millea shareholders, the sources said.