6. On-site inspections

        To ensure the smooth implementation of Savings Insurance Act, the Act provides that, if the competent ministers (in this case, the Minister of Agriculture, Forestry and Fisheries and the Commissioner of the Financial Services Agency) or the prefectural governor deem it necessary, the Corporation may order on-site inspections of cooperatives.
        On-site inspections that the Corporation may undertake are provided in Article 117 paragraph 6 of the Savings Insurance Act. Namely, they cover three issues:

①That insurance premiums are being properly paid (item (i) of said paragraph).

②That the cooperative has taken mandatory steps to maintain the database and system for name-based aggregation, and to maintain a system for quickly processing name-based aggregation results data by the Corporation, thus expediting insurance payouts on savings for payment and settlement, or the repayment of the same (item (ii) of said paragraph).

③The amount of savings and other receivables expected to be repayable when a cooperative fails (item (iii) of said paragraph).

Fig. 1)
Flow chart of bankruptcy proceedings under the financial assistance method (an example)

(Fig. 2)
Flowchart of insurance payouts

(1) Occurrence of an insured event
• Suspension of repayment of savings, etc., by a cooperative (Type 1 insured event)
• Approval for a resolution to dissolve a cooperative, decision to start bankruptcy proceedings, dissolution order, or statutory dissolution (Type 2 insured event)
(2) Notification of event (failed agricultural or fishery cooperative → Savings Insurance Corporation → Minister of Agriculture, Forestry and Fisheries, Commissioner of the Financial Services Agency, and Minister of Finance (and prefectural governor)
(2’) Notification of event (Prefectural governor (or Minister of Agriculture, Forestry and Fisheries, and Commissioner of the Financial Services Agency) → Savings Insurance Corporation → Minister of Finance)
(3) Depositor data, etc., submitted using format designated by the Corporation (failed agricultural or fishery cooperative → Savings Insurance Corporation)
(4) Calculation of insurance payout (Savings Insurance Corporation)
(5) Decision on payment (Note) and matters for public announcement (Savings Insurance Corporation)
(Note) Only after suspension of repayment of savings, etc., by a cooperative (Type 1 insured event)
(6) Public announcement in Official Gazette, etc. (Savings Insurance Corporation)
(7) Notification of payment (Savings Insurance Corporation → Depositors)
(8) Claim for payment (Depositors → Savings Insurance Corporation)
(9) Insurance payout (Savings Insurance Corporation → Depositors)

Next▶︎　III. Organization, etc., of the Savings Insurance Corporation