The Financial Services Agency ordered 26 nonlife insurers Friday to make improvements after failing to honor more than 8 billion yen in legitimate insurance claims in a scandal that has deepened worries about the faltering industry.

The companies punished by the financial watchdog include major insurers Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Insurance Co. They also include five foreign insurers here, including American Home Assurance Co. and AIU Insurance Co.

"The causes of nonpayments are structural problems, such as flaws in governance and the internal control system, in addition to causes regarding the processing of individual cases," the FSA said in a statement.

The FSA ordered the 26 companies to submit by Jan. 13 plans for reassessing and improving their governance systems, product explanations, internal product development operations and claim payment management systems.

About 90 percent of the cases are related to special clauses for automobile insurance products, including covering the cost of renting a car or taking a taxi while the policyholder's car is being repaired after an accident.

Worries over whether policyholders can actually receive what they are entitled to arose after nonpayments by Meiji Yasuda Life Insurance Co., one of Japan's top four life insurers, came to light in February.

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