Tokyo - Manulife Life Insurance Company (henceforth “MLJ”; President and CEO: Geoff Crickmay) has carried out a review of all cases of medical and life benefits paid over the five-year period from April 2001 to March 2006. Based on the result of the review, a number of underpaid claims and benefits, described below, have been identified.
Results of the review regarding claims and benefits payment
We have reviewed all 196,749 cases of paid claims for the period under review to determine if there are any cases in which the customer was underpaid. For all cases under review, the original set of claim forms that was used for medical and life benefit payments have been gathered and verified one by one to check whether any benefit amounts were left unpaid.
The result is that among individual insurance claims, 1,437 cases (by type, 1,616 cases), amounting to JPY 216,530,000, were underpaid.
The timely and accurate payment of claims to policyholders is a fundamental and one of the most important responsibilities of a life insurance company. MLJ expresses its sincere apology to the policyholders and persons who were affected.
Together with this apology and an explanation of the situation, the Company is proceeding with making additional benefit payments to the affected customers. As of April 12, 2007, of the 1,437 cases identified above, MLJ has completed the payment of additional benefits for 1,175 cases. MLJ will work quickly to pay additional benefits for the cases that still remain to be processed. For the remaining cases, the Company has been contacting the customers to make sure the payments are made as quickly as possible.
MLJ takes the outcome of this review very seriously. To ensure that similar incidents do not happen again in the future, the Company is making every effort to strengthen the management structure for payment of claims and benefits. MLJ will strive to ensure its “Customer First” concept takes root in the Company.
Cases where MLJ may be able to pay benefits for a different coverage by obtaining additional information
In addition to underpaid cases that can be determined by the use of the claim forms, MLJ is also proceeding to confirm if there are any paid claims for the period in which MLJ, by obtaining more information, may be able to pay additional benefits for a different type of coverage. As a special measure, taking all types of payment possibilities under consideration, for all paid claims during the period MLJ will send a letter to each customer to confirm if there were any cases where a possible additional claim was not made, and encourage customers to make a claim for those cases. MLJ is handling this process as quickly as possible as well.
Other kinds of additional payment
For other types of payment, with regards to every lapsed policy during the period under review with cash surrender values that can be claimed, the Company will once again notify related policyholders, sending each customer information regarding procedures for making a claim as well as for having their policies reinstated.
MLJ takes very seriously the fact that underpaid cases were confirmed during this latest review. Through its focus on its concept of “Customer First,” MLJ will continue to review and verify its payment process as well as its entire claims management structure, and make every effort to improve going forward.
For inquiries regarding specific cases please contact:
Manulife Life Insurance Company (“Manulife Japan”), a member company of the Manulife Financial group, holds the highest level ‘AAA’ credit rating from Standard & Poor’s, one of the world’s most reliable credit rating agencies.
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$414 billion (US$355 billion) as at December 31, 2006.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. Manulife Japan can be found on the Internet at www.manulife.co.jp.
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Manulife Life Insurance Company