Ｃ Copyright 2023 by General Insurance Rating Organization of Japan
◯

3-7-1 Nishishinjuku Shinjuku-ku Tokyo, 163-1029 JAPAN
Tel: +81/3-6758-1300
URL: https://www.giroj.or.jp/english/

Contents
INTRODUCTION ............................................................................................................................. 3
PART 1. COMPULSORY AUTOMOBILE LIABILITY INSURANCE (CALI) ........................................ 4
Chapter 1. Automobile Liability Security Act ..................................................................................... 4
1. Origin of the system ........................................................................................................................... 4
2. Liability under the Automobile Liability Security Act ....................................................................... 5

Chapter 2. Outline of CALI ................................................................................................................ 7
1. Obligation to conclude a CALI contract ............................................................................................ 7
2. Insurers’ obligation to provide insurance ........................................................................................... 8
3. Insurers ............................................................................................................................................... 8
4. The insured......................................................................................................................................... 9
5. Insurers’ liability ................................................................................................................................ 9(1)

Scope of insurers’ liability ................................................................................................................... 9(2)

Limits of insurance .............................................................................................................................. 9

6. Exclusion from coverage.................................................................................................................. 10
7. Claim for indemnity ......................................................................................................................... 10(1)

Payment of insurance claims ..............................................................................................................10(2)

Claim for indemnity against the insurer .............................................................................................10(3)

Provisional payment ...........................................................................................................................10

8. Premium rates .................................................................................................................................. 11(1)

Role of GIROJ.................................................................................................................................... 11(2)

Risk classification .............................................................................................................................. 11(3)No-loss, no-profit rule ........................................................................................................................ 11

9. Mutual pool ...................................................................................................................................... 12

Chapter 3.

Settlement of claims ........................................................................................................ 13

1. Outline of claims handling ............................................................................................................... 13
2. Assessment of the amount of claims and damages .......................................................................... 13(1)

Damages for bodily injury ..................................................................................................................13(2)

Damages for permanent disability ......................................................................................................14(3)

Damages for death ..............................................................................................................................14(4)

Damages for bodily injury suffered prior to death..............................................................................14

3. Reduction in the amount of a claim ................................................................................................. 14(1)

Reduction due to gross negligence on the part of the victim ..............................................................14(2)

Reduction due to uncertainty over the existence of a proximate cause relationship...........................15

4. Adjustment in relation with social insurance ................................................................................... 15
5. CALI dispute settlement scheme...................................................................................................... 15

IChapter 4.

The Government Plan for Automotive Safety & Victim’s Aid ....................................... 16

1. Program Guaranteeing Compensation for Automobile Accidents.................................................... 16
2. Program to Promote Injured Party Protection, etc............................................................................ 16
3. Levies for the Government Plan for Automotive Safety & Victims’ Aid ......................................... 17

Chapter 5. CALI Council .................................................................................................................. 18

PART 2. VOLUNTARY AUTOMOBILE INSURANCE ......................................................................... 19
Chapter 1.

Types of coverage ........................................................................................................... 19

1. Coverage for third-party liability ..................................................................................................... 19(1)

Legal liability covered under this insurance .......................................................................................19(2)

Limits of insurers’ liability .................................................................................................................20(3)

Exclusions ..........................................................................................................................................21(4)

Out-of-court settlement by the insurer................................................................................................21(5)

Right of the victim to claim for damage directly to the insurer ..........................................................22

2. Bodily injury indemnity coverage .................................................................................................... 22(1)

Insurers’ liability ................................................................................................................................22(2)

Amount of benefit paid.......................................................................................................................23(3)

Exclusions ..........................................................................................................................................23

3. Physical damage coverage ............................................................................................................... 24(1)

Insurers’ liability ................................................................................................................................24(2)

Exclusions ..........................................................................................................................................24(3)

Insured amount and insurable value ...................................................................................................24(4)

Deductibles .........................................................................................................................................25

4. Endorsements ................................................................................................................................... 25(1)

Endorsement to limit drivers to the named insured and spouse..........................................................25(2)

Endorsement to limit driver’s age ......................................................................................................25(3)

Endorsement to limit coverage to collision with another vehicle .......................................................25(4)

Endorsement to limit physical damage coverage Type A ...................................................................26(5)

Endorsement to extend coverage to driving another person’s automobile..........................................26(6)

Endorsement for motorcycles .............................................................................................................26(7)

Endorsement for bodily injury indemnity fixed-amount coverage .....................................................27(8)

Endorsement for self-incurred personal accident ...............................................................................28(9)

Endorsement for protection against uninsured automobiles ...............................................................28(10) Endorsement on the agreement of the value of the insured automobile .............................................29

5. Trends in new product development ................................................................................................ 29
6. Promotion of automated driving cars and its impact ........................................................................ 30

Chapter 2.

Premium rating ............................................................................................................... 32

1. Role of GIROJ ................................................................................................................................. 32

II2. Risk classification and premium rating plan .................................................................................... 32

Chapter 3.

Settlement of claims ........................................................................................................ 33

1. Bodily injury liability ....................................................................................................................... 33(1)

Payment of claims for bodily injury liability......................................................................................33(2)

Unitary claims payment system..........................................................................................................33

2. Property damage liability and physical damage ............................................................................... 33(1)

Adjuster system ..................................................................................................................................33(2)

Repair research and training center ....................................................................................................34(3)

Cognivision, Inc. ................................................................................................................................34

3. Facilities for settlement of disputes and consultation....................................................................... 34(1)

Japan Center for Settlement of Traffic Accident Disputes..................................................................34(2)

Other organizations ............................................................................................................................34

Appendices1.

Limits of Insurers’ Liability for CALI .......................................................................................................36

2.

CALI and CALMA: Underwriting Results by Policy Year ........................................................................38

3.

CALI: Summary of Premium Tariffs (Four largest islands of Japan) .......................................................39

4.

Number of Claims Filed under the Government Plan for Automotive Safety & Victim’s Aid ...................40

5.

Voluntary Automobile Insurance: Underwriting Results ..........................................................................41

6.

Diffusion of Voluntary Automobile Insurance ...........................................................................................42

7. Judicial Precedents for Large Awards of Damages for Traffic Accidents .................................................43
8. Number of Registered Automobiles and Victims of Road Traffic Accidents ..............................................44

III

GLOSSARY
Organizations
AIRO
CALI
CALMA

FSA
GIROJ
Member insurers
JCSTAD
Kokyoren

PCIRO
Zenjikyo

JA Kyosai (Zenkyoren)

Zenrosai

Automobile Insurance Rating Organization of Japan
Compulsory Automobile Liability Insurance operated by general (non-life)
insurance companies established under the Insurance Business Act
Compulsory Automobile Liability Mutual Aid operated by a cooperative,
or a federation of cooperatives, established under the Agricultural
Cooperative Society Act, the Consumers’ Livelihood Cooperative Society
Act or the Act on Cooperatives of Small and Medium Enterprises
Financial Services Agency of Japan
General Insurance Rating Organization of Japan
Member insurance companies of GIROJ
Japan Center for Settlement of Traffic Accident Disputes
National Mutual Insurance Federation of Truck Transport Co-operatives (afederation of cooperatives established under the Act on Cooperatives of
Small and Medium Enterprises)
Property and Casualty Insurance Rating Organization of Japan
National Federation of Motor Insurance Cooperatives (a federation ofcooperatives established under the Act on Cooperatives of Small andMedium Enterprises)
National Mutual Insurance Federation of Agricultural Cooperatives (afederation of cooperatives established under the Agricultural Cooperative
Society Act)
National Federation of Workers and Consumers Insurance Cooperatives (afederation of cooperatives established under the Consumers’ Livelihood
Cooperative Society Act)

Acts and Ordinance
The Act
The Rating Organizations Act
The Enforcement OrdinanceArt(s)./Par(s). of the Act (theEnforcement Ordinance)

Automobile Liability Security Act, Act No. 97, July 29, 1955
Act Concerning Non-Life Insurance Rating Organizations, Act No.
193, July 29, 1948
Enforcement Ordinance of the Automobile Liability Security Act,
Cabinet Ordinance No. 286, October 18, 1955
Article(s)/Paragraph(s) of the Automobile Liability Security Act(the Enforcement Ordinance of the Automobile Liability Security
Act)

Abbreviations
e.g.
i.e.

exempli gratia, for example
id est, that is

Introduction
Automobile insurance in Japan operates under two different systems and policies: compulsory
automobile liability insurance (CALI) and voluntary automobile insurance.

CALI was establishedby and operates under the Automobile Liability Security Act which became effective in 1955.
CALI only covers bodily injury liability, and the act specifies the limits of insurers’ liability for death,different grades of permanent disability, and bodily injury.

Voluntary automobile insurance

includes third-party liability coverage (i.e., bodily injury liability and property damage liability),
self-incurred personal accident coverage, protection against uninsured automobiles, passengers’
personal accident coverage, bodily injury indemnity coverage, and coverage for damage to theinsured’s own vehicle (hereinafter referred to as “physical damage coverage”). With respect toliability for bodily injury, voluntary automobile insurance acts as excess cover in addition to CALI.
The premium rates for the two kinds of automobile insurance described above are worked out by
the General Insurance Rating Organization of Japan (GIROJ) primarily on the basis of data gathered by
the insurers that are members of GIROJ.

GIROJ is a nonprofit organization established under the

Rating Organizations Act. It was created by the merger of its predecessors, the Property andCasualty Insurance Rating Organization of Japan (PCIRO) and the Automobile Insurance Rating
Organization of Japan (AIRO), and began operations on July 1, 2002.

GIROJ calculates Reference Loss Cost Rates (advisory pure premium rates) for fire insurance,
personal accident insurance, voluntary automobile insurance, and nursing care payments insurance,
as well as Standard Full Rates (advisory premium rates) for CALI and for earthquake insurance.
GIROJ files these rates with the Commissioner of the Financial Services Agency of Japan (FSA),
who examines the rates on the basis of “three principles of premium rates,” which are “reasonable,”“adequate” and “not unfairly discriminatory.” Following the FSA’s examination, member insurers
can use the rates, but they are not obligated to do so.
In the general insurance sector, direct net premiums, including the savings portion of
maturity-refund-type insurance premiums, totaled ¥10,181.0 billion in fiscal year 2021.
Automobile insurance (i.e., CALI and voluntary automobile insurance), which is now the largest line
item, amounted to ¥5,116.5 billion, representing 50.3% of total direct net premiums in generalinsurance.

3Part 1.

Compulsory Automobile Liability Insurance (CALI)
Chapter 1. Automobile Liability Security Act

1.

Origin of the system
A rapid increase in Japan’s automobile traffic was seen several years after the end of World War

II. In 1948, the number of registered automobiles in Japan was 250,450, slightly more than thehighest figure recorded during pre-war days.

By 1967, this figure exceeded ten million.

In line with such rapid progress in motorization, the number of accidents increased drastically,
resulting in a serious social problem.

The number of people killed or injured in traffic accidents

rose from 21,457 in 1948 to 78,764 in 1954, more than tripling in six years.

The number ofcasualties continued to climb, and the number of deaths in 1970 is still the worst on record.
Since the Traffic Safety Measures Basic Act was enacted in 1970, various traffic safetymeasures have been taken by public and private sectors under the Traffic Safety Basic Plan, whichis revised every five years. After 1992 saw the second worst rate on record, the number of traffic
accident deaths began to decline, dipping below 3,000 in 2020.

AUTOMOBILE DATA IN JAPANRoad Traffic Accidents
Year

1948
1954
1967
1970
1992
2021
Note: 1.
2.
3.

Number ofRegistered Autos(thousands)

Number of
Accidents

Number of
DeathsNumber of
Injured
Persons

250
1,338
11,691
18,91964,49882,565

21,341
93,869521,418
718,080
695,346
305,196

3,848
6,374
13,618
16,765
11,452
2,636

17,60972,390655,377
981,096844,003362,131

Auto
Insurance
Premiums(¥ million)

360
3,870
219,298
575,103
4,083,842
5,116,537

Ratio of
Auto
Premiums to
Total
GeneralInsurance
Premiums
－
7.1%
49.7%
57.1%
43.8%
50.3%

Number of Registered Autos represents the number of registered automobiles excluding motorcycles for eachfiscal year starting on April 1 of the year and ending on March 31 of the following year.
Number of Deaths represents the number of those who died within twenty-four hours of accidents occurring
during each calendar year.
Auto Insurance Premiums represent the direct net premium income of CALI and voluntary automobile
insurance for each fiscal year starting on April 1 of the year and ending on March 31 of the following year.

4Before the enactment of the Automobile Liability Security Act, tort liability regarding traffic
accidents was mainly governed by Art. 709 and other provisions of the Civil Code.

Under theseprovisions, a traffic accident victim was able to claim for damages only when he/she could prove awillful act or negligence on the part of the party at fault.

Normally, however, it is difficult, if not

impossible, to prove this. Furthermore, a lack of financial resources on the part of the party at fault
often made it difficult for the victim to obtain compensation.
To ensure financial relief for such victims, the Automobile Liability Security Act was enacted in
1955. The act, which came into effect in February 1956, imposed on every automobile user a strict
liability with respect to traffic accidents resulting in death or bodily injury to another person. The
act also obligated every automobile user to conclude CALI in order to secure funds for compensation.
At the inception of the CALI system, the insured amounts (i.e., the limits of insurer’s liability)
required by the act were modest compared to today’s standards, namely, ¥300,000 for death,¥100,000 for serious injury, and ¥30,000 for slight injury.

As a result of several revisions, the limits

of insurer’s liability are now ¥30,000,000 for death and ¥40,000,000 for permanent disability (seepage 9).
2.

Liability under the Automobile Liability Security Act
Article 3 of the Act stipulates that any person who operates an automobile for his/her benefit

shall be liable to compensate for death or bodily injury caused to any other person arising from theoperation of the automobile unless he/she is able to prove all three of the following conditions:neither he/she nor the driver failed to exercise due diligence in operating the automobile,

there was an intention or negligence on the part of the victim or another third party otherthan the driver, and

there was no structural defect or functional disorder in the automobile.

“A person operating an automobile for his/her benefit, on whom liability for damages is imposed,”
as referred to in the Act, includes any person who has control over the operation of the automobile
and obtains benefit therefrom, regardless of whether he/she owns the automobile or whether he/she
is driving or otherwise riding in the automobile at the time of the accident.1
The provisions of the Act transferred the burden of proof of negligence from the victim to theperson operating the automobile for his/her benefit. As a result, the imposed liability can be said tobe very strict, since it is normally not easy to prove all three of the conditions listed above.
Accordingly, liability in the CALI system is, in fact no-fault liability, and as a result it has becomemuch easier for victims of traffic accidents to be compensated for their losses.

51

Before the enforcement of the Act, those who were liable for damages had been limited to persons

who violated, intentionally or negligently, the rights of other persons (Art. 709 of the Civil Code), although
if an employee caused damage to another party in an accident during the course of his/her employment,
his/her employer was, in many cases, held liable (Art. 715 of the Civil Code).

6Chapter 2. Outline of CALI
1.

Obligation to conclude a CALI contract
Under the Act, no automobile can be operated unless a contract for CALI (or Compulsory

Automobile Liability Mutual Aid, CALMA) has been concluded (Art. 5 of the Act).1

The purpose of the Act is to protect victims of traffic accidents through the introduction of aliability system which forces a party at fault to secure funds to pay for damages. Therefore, every
automobile is required2 to be insured by CALI or CALMA. Violation may result in imprisonment
with labor for a period not exceeding one year or a fine not exceeding ¥500,000 (Art. 86-3 of theAct).
A valid CALI certificate must be presented both at the time of initial registration of an
automobile and at each vehicle inspection,3 carried out periodically by administrative authorities,
thereafter.

The CALI policy period must cover the full length of time before the next vehicle

inspection (Art. 9 of the Act). This system is considered the surest way to preclude any uninsured
automobile from being used on public roads, and ensures that every automobile that undergoes
inspection is insured by CALI or CALMA.
1

In 1966, motorcycles were newly included to the category of “automobiles,” as stipulated by theAct. It subsequently became compulsory to conclude CALI on motorcycles.

Given that such vehicles are

exempt from the periodic vehicle inspections, the insured is required to attach to these vehicles an insurance
sticker provided by the insurer which certifies the existence of a CALI contract as well as its expiry date(Arts. 9-2 and 9-3 of the Act). The purpose of the system is to enable the easy detection of any uninsured
automobiles and to eliminate them from public roads.
In 2023, with the revision of the Road Traffic Act, motorcycles have been divided into "generalmotorized bicycles" and "specified small motorized bicycles," with small mobility vehicles — such as
electric scooters that meet certain safety standards — having been classified as "specified small motorized
bicycles." New traffic rules apply to "specified small motorized bicycles," such as not requiring a rider tohave a driver's license if they are 16 years old or older. Specified small motorized bicycles must be covered
by Compulsory Automobile Liability Insurance, which is the same as that which covers motorcycles. In
addition, motorcycles that do not meet the requirements for "specified small motorcycles" are classified as"general motorized bicycles."2

The only exceptions to this are those automobiles used by the Self-Defense Forces of Japan or by

the forces of the United States of America or the United Nations, or those which are not used on any roadthat is open to public traffic (Art. 10 of the Act and Art. 1-2 of the Enforcement Ordinance).
3

Intervals between vehicle inspections depend on the type of automobile.

In the case of a private

passenger automobile, for example, the first inspection has to be conducted within three years of the date of7

registration, and inspections are required every two years thereafter.

Any person who wishes to havehis/her automobile registered or inspected must present a CALI certificate.

If he/she fails to do so, theautomobile cannot be registered or inspected and will be prohibited from being operated.

2.

Insurers’ obligation to provide insurance
In general, private insurers may choose to accept or reject any application for an insurance

contract at their discretion. However, since the purpose of the Automobile Liability Security Act isto ensure that every automobile will be insured by CALI, it is not only necessary to compel
automobile owners to conclude CALI on their automobiles but also to prohibit the insurer fromdeclining any application for a CALI contract.

For this reason, the Act prohibits the insurer fromrefusing to conclude a CALI contract, except when there is due reason as provided in the Act, suchas non-payment of the premiums or a breach in the disclosure agreement on the part of the applicant(Art. 24 of the Act and Art. 11 of the Enforcement Ordinance).
Neither of the parties to a CALI contract may cancel or terminate the contract, except in a very
limited number of cases. The contract may only be canceled when the insured automobile comes tobe regarded as any automobile to which the Act is not applicable, when the policyholder willfully or
negligently breaches the disclosure agreement, or when another CALI or CALMA contract isconcluded to cover the same automobile (Art. 20-2 of the Act).
3.

Insurers
Insurers who can maintain CALI contracts are general insurance companies as stipulated in Art. 6of the Insurance Business Act.
As a result of revisions to the Act in 1966, agricultural cooperatives and a federation ofagricultural cooperatives established under the Agricultural Cooperative Society Act have been
permitted to carry on this type of insurance business. The Act was further revised on December 20,
1995, to include consumer cooperatives or a federation of consumer cooperatives (established under
the Consumers’ Livelihood Cooperative Society Act), as well as common facility cooperatives or afederation of common facility cooperatives (established under the Act on Cooperatives of Small andMedium Enterprises). The actual business performed by such entities is the same as that operated
by insurers, but this system is called CALMA instead of CALI, because under the current Insurance
Business Act, “insurance” business can only be carried out by stock or mutual companies, andinsurance business operated by any other entity, including cooperatives, must be denoted in someother way.

8

4.

The insured
Under CALI, the insured is the “owner” and “driver” of an automobile (Art. 11 of the Act).

The“owner” refers to a person who owns an automobile or any other person entitled to use it, and who
operates such automobile for his/her benefit (Art. 2 Par. 3 of the Act). Thus, a person who operates
an automobile without the permission of the person or persons entitled to its use (a thief, forexample) is not regarded as the “owner.”
The “driver” refers to a person who drives or a person who assists in driving an automobile foranother person’s benefit, but who is not the owner of the automobile (Art. 2 Par. 4 of the Act).
5.

Insurers’ liability(1) Scope of insurers’ liability
According to the general policy conditions of CALI, coverage is afforded with respect to any
operation of the insured automobile within the territorial jurisdiction of Japan including the Japanese
vessels in foreign waters (Art. 1 of the general policy conditions of CALI). The nationality or
country of residence of the insured or the victim does not affect the insurance coverage.
(2) Limits of insurance
Under CALI, the limits of insurance are set out by the Enforcement Ordinance for death,different degrees of permanent disability, and other bodily injury.
In the case of death or permanent disability resulting from bodily injury, indemnities are assessed
separately for the loss incurred prior to death or stabilization of the state of permanent disability andagain for the actual loss resulting from death or permanent disability.

Under CALI, the amount of

indemnification is subject to the respective limits of insurance.
The limits of insurance are applied to each victim without any total limit per occurrence. Any
payment for a claim does not reduce the limits of insurance for the rest of the policy period as thelimits are automatically reinstated.

As CALI was specifically established for the purpose ofprotecting the victims of automobile accidents, the limits of insurance are designed to provide basic
coverage for securing the minimum financial responsibility of the party at fault.
The limits of insurance currently in force are as follows (Art. 13 of the Act and Art. 2 of the
Enforcement Ordinance)1 :For death¥30,000,000For permanent disability (from 1st to 14th grade)9(1) For permanent disability requiring constant or occasional nursing care
1st grade¥40,000,000
2nd grade¥30,000,000(2) For other cases of permanent disability
From ¥30,000,000 (1st grade) to ¥750,000 (14th grade)¥1,200,000
 For bodily injuries
1

6.

The insured amount per person is the total amount of insurance limits for applicable damages.

Exclusion from coverage
Under CALI, the insurer is excluded from liability for indemnification for damage caused bymalicious intent on the part of the policyholder or the insured (Art. 14 of the Act), but the victim is
still protected under the insurance. The victim is entitled to make a claim directly against theinsurer and recover the amount of damages from the insurer.

The insurer may then claim

compensation from the Government for the amount paid (Art. 16 Par. 4 and Art. 72 Par. 2 of the Act).
The Government is then subrogated to the claim of the victim against the liable party (thepolicyholder or the insured) to the extent of the amount paid by the insurer (Art. 76 Par. 1, item3 of
the Act).
7.

Claim for indemnity(1) Payment of insurance claims
Under the Act, the insured is entitled to make a claim against the insurer only up to the amountthat he/she actually paid as damages to the victim (Art. 15 of the Act). This is to prevent theinsured from misappropriating the CALI claim and leaving the victim uncompensated if the insured
receives the claim before he/she makes indemnification to the victim.
(2) Claim for indemnity against the insurer
If the owner has become liable to compensate for damage pursuant to the provision of Art. 3 of
the Act, the victim is entitled to make a claim directly against the insurer for the amount of damage
to the extent of the limits of insurance described above (Art. 16 Par. 1 of the Act). When theinsurer pays the victim the claimed amount, it is deemed to have indemnified the insured for his/herloss under the liability insurance contract (Art. 16 Par. 3 of the Act).
(3) Provisional payment
The victim is also entitled to ask the insurer for a provisional payment before the amount ofdamages is actually determined (Art. 17 of the Act). Since it often takes a long time to determine

10the amount of damages, the provisional payment system was adopted as a measure to ease thefinancial burden of the victim. The amount payable under this system is ¥2,900,000 in the case ofdeath, whereas in the case of bodily injury the amount payable is ¥50,000, ¥200,000 or ¥400,000
depending upon the degree of injury suffered (Art. 5 of the Enforcement Ordinance).
8.

Premium rates(1) Role of GIROJCALI premium rates calculated by GIROJ, which are called Standard Full Rates, are filed with
the FSA. Filing is deemed approved automatically after a 90-day examination period, which may
be changed at the FSA’s discretion.

The examination period starts the day after the FSA accepts

the filing. When GIROJ has filed rates, it must make a public announcement in the Official
Gazette and principal daily newspapers. The Commissioner of the FSA must consult the CALI
Council (Art. 33 of the Act) with respect to rates and obtain the consent of the Minister of Land,
Infrastructure, Transport and Tourism (Art. 28 Par. 2 of the Act). After the examination period,
member insurers may use these rates as their own by individually filing with the FSA.
The Anti-Monopoly Act does not apply to certain activities of CALI, such as GIROJ’s
calculation of Standard Full Rates and the use of the said rates by member insurers.
(2) Risk classification
For the purpose of CALI premium ratings, automobiles are classified by type, size, and use.1 A
bonus-malus system2 has not been adopted.
1

There are two exceptions:(1)

Premium rates for remote islands are different from those applied to the Four largest islands ofJapan (i.e., Hokkaido, Honshu, Shikoku and Kyushu). Also, premium rates for Okinawa Prefecture aredifferent than those for other areas of Japan.
(2)

Premium rates applicable to commercial passenger automobiles vary by area.

2

Under this system, a discount is granted to a policyholder who has been claim-free for a certain

number of years, or, conversely, a surcharge is imposed on a policyholder who has made a claim.

(3) No-loss, no-profit rule
Article 25 of the Act stipulates that premium rates shall be as low as possible to the extent which
insurance business under efficient management can cover reasonable costs. This provision has
been construed to prohibit the insurer from making any profit from the operation of CALI, whichworks under a “no-loss, no-profit” rule.

11

As such, any underwriting surplus and investment income obtained from the operations of CALI
are reserved cumulatively for the improvement of the underwriting balance, the development of
measures to prevent traffic accidents, the protection and provision of assistance to victims ofaccidents or their bereaved family members, and the improvement of emergency medical services.
Underwriting loss or profit from the operations of CALI may also be reflected in the revision ofpremium rates.
9.

Mutual pool
The “mutual pool” system entails all carriers participating in the CALI and CALMA schemes inorder to prevent deterioration in the underwriting results of carriers because of the obligation toaccept any applicants regardless of risk. After deducting operating expenses relating to CALI andCALMA business, all premiums, are brought into the pool and redistributed to each carrier.

12Chapter 3. Settlement of claims
1.

Outline of claims handling
Normally, in the case of an accident, an insurer manages all aspects of claims handling,including receipt of notification of the accident, confirmation of the insurance contract,
investigation of the accident situation and the extent of loss, and payment of indemnities.
However, CALI, which is characterized by its function as a basic compensation system to provide
relief to victims of traffic accidents, a high degree of fairness, objectivity, and uniformity are
required in claims handling.

For this reason, GIROJ’s Claims Survey Offices carry out asignificant portion of the claims handling procedures, including determination of the validity of aclaim and the reasonability of the damage amount assessed.1 The results of the GIROJ’s surveys
are then provided to the relevant insurers.
1 As of April 1, 2023, GIROJ has 54 Claims Survey Offices in major cities throughout Japan.

2.

Assessment of the amount of claims and damages
Under the CALI scheme, the amount of loss suffered by victims of traffic accidents is assessedin accordance with the standards for payment as announced by the Minister of Land, Infrastructure,
Transport and Tourism and the Commissioner of the FSA.

The standards adopt, as far as possible,

fixed-form and fixed-amount methods of calculation in order to quickly and impartially handle
about 0.97 million claims annually.

The items of loss1 included in the standards are detailed below.

The standard payment amount for each loss is subject to re-examination, taking into considerationdifferences in wages, prices, and indemnities.
1

Any costs incurred by the insured through litigation with the victim are not covered under CALI (Art. 8 of thegeneral policy conditions of CALI).

(1) Damages for bodily injury(i) Direct damage
Expenses related to medical treatment (e.g., examination fees, hospital fees, outpatientfees, nursing care fees, and miscellaneous expenses)Documentation feesOther expenses(ii) Loss of earnings due to absence from work(iii) Damages for pain and suffering

13(2) Damages for permanent disability(i) Loss of future earnings(ii) Damages for pain and suffering(3) Damages for death(i) Funeral expenses(ii) Loss of future earnings(iii) Damages for pain and suffering on the part of the victim and his/her bereaved family

members(4) Damages for bodily injury suffered prior to death
Direct damages, loss of earnings due to absence from work, and damages for pain and suffering
are included in this category, and the standards for “damages for bodily injury” are correspondingly
applied to this item.
In order to facilitate the protection of victims, damage surveys need to be performed carefully.
In particular, a victim or his/her bereaved family member(s) may contest the assessment ofnegligence or the determined level of permanent disability. Such disputes must be evaluated byexperts such as lawyers and doctors.

With this in mind, GIROJ established a “CALI (CALMA)

Claims Assessment Board” system in April 2002. Under this system, the Board and related task
forces comprising outside experts resurvey difficult claims or any opposition to the assessment ofclaims.
3.

Reduction in the amount of a claim
The amount of indemnity CALI provides for victims of traffic accidents may be reduced in thefollowing special cases.
(1) Reduction due to gross negligence on the part of the victim
In general tort liability cases, the principle of comparative negligence applies. However, under
CALI, the amount of indemnity is reduced only when a victim has shown gross negligence, defined
as 70% or more of responsibility, in the accident. The ratio of reduction, in case of death orpermanent disability, is limited to 20%, 30% or 50% depending upon the degree of the victim’s
negligence. In the case of bodily injury other than permanent disability, however, the ratio of
reduction is set at 20%.

14

(2) Reduction due to uncertainty over the existence of a proximate cause relationshipIn some cases, it is difficult to prove medically the existence of a proximate cause relationshipbetween the negligent act and the damages suffered.

However, as CALI prioritizes relief forvictims, it is of concern if the victim cannot be indemnified for damages because of an uncertainty.
Accordingly, in such cases, insurers are required to pay the victim 50% of the amount of the loss
due to death or permanent disability.
4.

Adjustment in relation with social insurance
In the case where a victim of a traffic accident suffers bodily injury and is a beneficiary of one

or more social insurance schemes, such as health insurance or workers compensation insurance,
he/she can either receive compensation from such social insurance schemes or under the CALI
scheme. He/she cannot receive benefits under both CALI and other social insurance schemes forthe same loss.

This means that a social insurer that paid benefits to the victim can be subrogated tothe claim that the victim has against the relevant CALI insurer or the liable party up to the amountof benefit paid.

Thus, the amount the victim is entitled to claim against the CALI insurer will be

reduced to that extent.
5.

CALI dispute settlement scheme
Under the amended Act of April 2002, the CALI dispute settlement scheme was introduced inorder to facilitate fair and appropriate settlement of claims.

In cases where a victim of a traffic

accident or the insured contests the insurer’s settlement of claims, he/she may apply for mediation
through the Dispute Settlement Organization for Compulsory Automobile Liability Insurance
Claims, a corporation established in the public interest and designated by the Minister of Land,
Infrastructure, Transport and Tourism and the Commissioner of the FSA.

15

Chapter 4. The Government Plan for Automotive Safety & Victim’s Aid
1.

Program Guaranteeing Compensation for Automobile Accidents
When a person is killed or injured in an accident caused by an uninsured, unidentified (e.g.,

hit-and-run), or stolen1 automobile and therefore cannot be compensated by CALI, the victim canreceive compensation under the Program Guaranteeing Compensation for Automobile Accidents(Arts. 71 and 72 of the Act).
The items of indemnity provided under the Program Guaranteeing Compensation for
Automobile Accidents are basically identical to those under CALI. If the victim is entitled to any
benefits from social security or other public compensation schemes such as health insurance orworkers compensation insurance under the provisions of the Act and the Enforcement Ordinance,
the amount of such benefits is deducted from the amount of compensation under this Program (Art.
73 of the Act and Art. 21 of the Enforcement Ordinance).
The Program is financed by a levy on the premiums of CALI and CALMA at a proportion
specified by the Cabinet Ordinance.
The Program is subsumed under the Minister of Land, Infrastructure, Transport and Tourism(Art. 83 of the Act) and implemented by some of the CALI and CALMA carriers (Art. 77 of the Act
and Art. 22 of the Enforcement Ordinance). Victims may file claims with any of these carriers.
If a claim is made against CALI or CALMA, GIROJ surveys the claim. After the Government has
paid the indemnity, it can be subrogated to the victim’s claim to compensation from the liable party
for damage up to the amount paid (Art. 76 of the Act).
1

If a stolen automobile covered by CALI causes an accident and the owner is not found negligent in

the maintenance of the automobile, CALI does not cover such incident as an accident, and the thief is solely
liable.

2.

Program to Promote Injured Party Protection, etc.
Although the number of traffic accidents, fatalities, and injuries are decreasing, the number of

persons with severe disabilities has remained unchanged. This matter requires further enhancing
victim support and a greater promotion of accident prevention by championing of advanced safety
technologies. The Government carries out projects to support victims — such as the establishment
and operation of medical facilities that specialize in assisting those who have become severely
disabled as a result of automobile accidents and which provide rehabilitation support during home16

nursing care, along with projects to prevent accidents — such as by encouraging the introduction ofadvanced safety vehicles and the evaluation of automobile safety performance.
However, these measures were only to be taken for a limited time as a result of operating against
a backdrop of limited reserve funds.
As these projects should be implemented in a sustainable and stable manner, and given thatefforts must be made to realize a society in which victims and their families can live without anxiety
and in which people are free from car accidents, the Program to Promote Injured Party Protection,etc. — implemented by the Government — came into effect on a permanent basis from April 2023
(Art 77-2 of the Act).
3.

Levies for the Government Plan for Automotive Safety & Victims’ Aid
The Government Plan for Automotive Safety & Victims’ Aid was launched in April 2023,

and combines two existing systems: the Program Guaranteeing Compensation for
Automobile Accidents and the “Program to Promote Injured Party Protection, etc.”This
reform expanded the levy system under the auspices of the “Levies for the Government
Plan for Automotive Safety & Victims’ Aid,” which is appropriate for both the Program to
Promote Injured Party Protection, etc. and the Program Guaranteeing Compensation for
Automobile Accidents (which were formerly applied only for the latter).

17

Chapter 5. CALI Council
As CALI is a compulsory insurance system of a highly public nature with the purpose ofproviding relief to victims of traffic accidents, a higher degree of management is required comparedto the management of other insurance businesses. To ensure democratic administration of thesystem and fair and reasonable decision-making with regard to policy conditions and premium rates,
the CALI Council1 was established within the FSA (Art. 31 of the Act).
The Commissioner of the FSA must consult the CALI Council about matters related to CALI,
such as the issuance of operating licenses, approval of policy conditions, and examination ofpremium rates or orders to revise them (Art. 33 of the Act).
1 The CALI Council is composed of thirteen members, including seven persons of learning and experience, suchas professors, three persons with expertise and experience in road transportation and traffic accidents, andthree persons with expertise and experience in the insurance business (Arts. 1 and 2 of the CALI Council
Ordinance).

18

Part 2.

Voluntary Automobile Insurance

Since rate liberalization in July 1998, insurers have introduced their own policy conditions.
Consequently, the voluntary automobile insurance market offers various types of coverage.
The standard policy form made by GIROJ includes five types of coverage, namely, third-party
liability, self-incurred personal accident, protection against uninsured automobiles, passengers’
personal accident, and physical damage.
Following are details on the coverage of the standard policy form made by GIROJ.

Chapter 1.
1.

Types of coverage

Coverage for third-party liability(1) Legal liability covered under this insurance
Coverage for bodily injury liability that is provided by voluntary automobile insurance policies
acts as excess cover in addition to CALI.

The scope of such coverage under voluntary automobile

insurance is broader than it is under CALI.
Coverage for bodily injury liability covers any kind of legal liability for an accident arising fromthe ownership, use, or maintenance of the insured automobile.
Coverage for property damage liability covers legal liability arising from the ownership, use, or
maintenance of the insured automobile for the below:(a) loss, damage, or contamination caused to another person’s property, and(b) putting out of operation any land transportation equipment that runs on tracks.
Those liability for damages will be covered regardless of whether it is incurred under Art. 3 of
the Act or any provision of the Civil Code or any other act.1
Differences also exist with regard to defining the insured persons.

Under CALI, the “owner”

and the “driver” are insured persons, whereas under bodily injury liability provided by third-party
liability insurance, in addition to the “named insured” indicated in the policy, the following persons
are insured: the spouse of the named insured, including unmarried spouse2, relatives3 of the named
insured, any person who drives or uses the automobile with the permission of the named insured,4 aperson obligated to supervise a person without capacity to assume responsibility, and the employerof the named insured.5
1

Because of this difference, an exceptional case may occur where payment for bodily injury

liability is made solely under voluntary automobile insurance, without any payment being made under a
CALI contract.

For example, in the case of an explosion of an insured automobile that is kept in a garage,

no claims are paid with respect to bodily injury liability under CALI, as the explosion cannot be construed19

as having occurred arising from the operation of the insured automobile.

Under voluntary automobile

insurance, on the other hand, payment will be made to cover the liability of the insured if damages arecaused by his/her negligence in the maintenance of the automobile. In such circumstances, voluntary
automobile insurance acts to cover the whole amount of liability for the loss, instead of acting only as excess
cover in addition to CALI.
2The “spouse” hereinafter refers to the other party to the marriage of the named insured, including aperson who is de facto married with the named insured, even though the marriage has not been registered,and a person whose gender on the family register is the same as the named insured, but their relationship ismaterially the same as marriage.
3

The “relatives” in this context mean:A relative of the named insured or of his/her spouse, who lives in the same householdA child of the named insured or of his/her spouse, who does not live in the same household and has no
history of marriage

4This does not include the period when the insured automobile is under the care and control of any

business partners including automobile repair shops, parking lots, and automobile sales businesses as part ofa business agreement.
5

The policy insures the employer’s liability if an accident occurs while the insured automobile isbeing used by the named insured for the business of the employer, and if the employer is liable for thedamage caused by that accident under Art. 3 of the Act, Art. 715 of the Civil Code, or the provision of any
other act.

The scope of property damage liability coverage is identical to that of bodily injury liability.
Under the coverage for property damage liability, the insurance policy covers the insured for his/herlegal liability, under the provision of the Civil Code or any other act, for an accident arising fromthe ownership, use, or maintenance of the insured automobile.
Costs of litigation between the insured and the claimant, including lawyers’ fees, and otherexpenses are covered if they are incurred by the insured with the written agreement of the insurer.
(2) Limits of insurers’ liability
With regard to third-party liability coverage, the limits of coverage are agreed upon separately
for bodily injury and for property damage between the insurer and the policyholder.

For bodily

injury liability coverage, the limit of coverage is applied on a per-victim basis with no limit ofliability per accident. Where the applicant requires a greater amount of coverage, coverage withunlimited indemnity is available.

20(3) Exclusions
Any loss caused by a willful act on the part of the policyholder or the insured is excluded fromcoverage. In the case of a willful act committed by an insured person other than the named insured,
however, this exclusion does not apply to the liability of any other insured person who is innocent.
Coverage is also excluded for any loss caused by:War, civil war, rebellion, insurrection, riot, or similar incident

Earthquake, volcanic eruption, or tsunami

Typhoon, flood, or tidal waveNuclear fuel material

Nuclear radiation or radioactive contamination

Using the insured automobile for the purpose of racing or stunting; or using the insured
automobile in a place intended for racing or stunting

Loading the insured automobile with dangerous goods for a business purpose, or using theinsured automobile to tow a tractor loaded with dangerous goods for a business purpose

Coverage is also excluded for any loss to the insured persons caused by being held liable forbodily injury to:

The named insured

Any person who is driving the insured automobile, his/her parent, spouse or childThe insured’s parent, spouse, or childAny employee of the insured engaged in the business of the insuredAny employee of the insured engaged in the business of another employee of the insured,
provided that the insured is using the insured automobile for the purpose of that
employee’s business

Coverage is excluded for any loss to the insured persons caused by being held liable for loss,
damage, or contamination caused to the property of:

The named insured

Any person who is driving the insured automobile, his/her parent, spouse, or childThe insured or his/her parent, spouse, or child(4) Out-of-court settlement by the insurer
If the insured receives a claim for damage from the victim of a traffic accident, the insurer may
settle the claim out of court directly with the victim on behalf of the insured, and determine the21extent of the insured’s liability for damage to the victim, for the purpose of handling the claim
smoothly. The insurer, with the consent of the insured, may negotiate, settle, mediate, or litigate
the claim within the limit of the insured’s liability to the victim.

All the relevant costs are borne by

the insurer.
(5) Right of the victim to claim for damage directly to the insurer
In bodily injury and property liability coverage, the victim of a traffic accident may make aclaim for damage directly to the insurer.

This system protects the victims of traffic accidents,

similar to the system under CALI where a traffic accident victim may make a claim for damage
against the CALI contract of the party at fault. The insurer, if certain conditions are met, pays thevictim the amount of damage within the liability of the insured.

2.

Bodily injury indemnity coverage
GIROJ develops Reference Loss Cost Rates and a standard policy form for the bodily injury

indemnity coverage from 2021.
(1) Insurers’ liability
Under this coverage, benefits are paid when the insured suffers bodily injury, which includes gas
poisoning, due to the following sudden, fortuitous, and externally-caused accidents:An accident arising from the operation of an insured automobileAn accident, caused by a collision with a flying or falling object, fire, explosion, or thefalling of an insured automobile while being operated

Under this coverage, “insured person” includes the following:The person who is in a regular seat, or in the compartment where such a seat is installed,of the insured automobile

The owner of the insured automobile

The driver of the insured automobile

Of the above, the owner and driver are not only insured while boarding the insured vehicle, butalso if they are run over by the insured automobile while outside the automobile. An insured person
other than the owner and the driver is only insured when on board.

22

(2) Amount of benefit paid
The amount of benefit paid under this coverage is as follows:
The amount of loss suffered by
the insured person calculated by
the insurance company inaccordance with the standards
stated in the insurance policy＋

Certain expenses spentby the policyholder orthe insured person－

The amount paid byother insurance
coverage andthe amount of theindemnity received
from the liable party

The amount of the benefit cannot exceed the insured amount stated in the policy.

An insurerthat has paid benefit under this coverage is subrogated to the claim of the insured to seek
compensation for damages from the party at fault.
(3) Exclusions
Coverage is excluded in the case of any loss caused by the insured when committing a willfulact, gross negligence, a violent act against another person, a suicidal/criminal act, or, in the case ofan accident occurring while the insured is:driving the insured automobile without a valid driver’s license, or under the influence ofalcohol or drugs (such as narcotics) or,

driving or otherwise riding in the insured automobile without the permission of the person
entitled to its use.

Furthermore, bodily injury caused by any of the following reasons is excluded from thiscoverage:War, civil war, rebellion, insurrection or riot

Earthquake, volcanic eruption, or tsunami



Nuclear fuel material

Wound infections caused by minor injuries that do not interfere with normal life and work

Nuclear radiation or radioactive contamination

Using the insured automobile for the purpose of racing, stunt driving, or testing, or using
the insured automobile in a place intended for racing, stunt driving, or testingLoading the insured automobile with dangerous goods for a business purpose, or making
the insured automobile tow a tractor loaded with dangerous goods for a business purpose

Endorsement for a self-incurred personal accident and protection against uninsured automobiles,
as mentioned later, are used to provide limited coverage when bodily injury indemnity coverage is
not included in the policy.

23

3.

Physical damage coverage(1) Insurers’ liability
This coverage indemnifies any accidental loss to the insured vehicle.

The causes of loss

covered include collision, contact, falling, rolling over, or contact with a flying or falling object, fire,
explosion, theft, typhoon, flood, and tidal wave.

Losses of accessories of the insured vehicle, suchas a car navigation system or an ETC in-vehicle device, are also covered.
(2) Exclusions
Coverage is excluded for the following losses:
Loss caused by a willful act or gross negligence on the part of the policyholder, the ownerof the insured vehicle, the insurance beneficiary, or the equivalent thereof (e.g. thepolicyholder’s spouse)Loss caused when the insured automobile was being driven by the policyholder, the ownerof the insured vehicle, the insurance beneficiary, or the equivalent thereof (e.g. thepolicyholder’s spouse) without a valid driver’s license or under the influence of alcohol or
narcotics



Loss caused by war, civil war, rebellion, insurrection, riot, earthquake, volcanic eruption,
tsunami, or radioactive contamination



Loss caused by exercise of the Government and other public authority



Loss caused by fraud or embezzlement



Loss caused by using the insured automobile for the purpose of racing or stunting, orusing the insured automobile in a place intended for racing or stunting

Loss caused by loading the insured automobile with dangerous goods for a businesspurpose, or using the insured automobile to tow a tractor loaded with dangerous goods fora business purpose

Loss caused while transporting the insured vehicle by plane or vessel.



Mechanical or electrical breakdown, defect, wear and tear, corrosion, rust, or natural
deterioration of the insured automobile

Loss caused to parts or accessories that have been unlawfully modified(3) Insured amount and insurable value
Under this coverage, the insured amount is stated in the insurance policy, although payment for
loss is calculated on the basis of the insurable value of the insured automobile.

The insurable

value is assessed according to the market value of an automobile of identical use, type, name, model,
specification, initial registration year, and degree of wear and tear.

The automobile is deemed a

total loss when it is not possible to repair the damage to the insured automobile — such as in cases

24wherein it is stolen, lost due to a fire etc., wrecked beyond repair, or when the cost of repairs
exceeds the insurable value. If the cost of repairs exceeds the insurable value, the automobile isdeemed a total loss. If the insured amount is less than the insurable value, the amount paid for loss
is calculated as a proportion of the insured amount to the insurable value.

As long as the total

value of the insured automobile does not increase as a result of mainly parts replacement, theamount paid for loss is calculated without adjustment.

If the cost of repairing damaged parts isless expensive than replacing them, the amount paid for loss is determined according to the cost of
repairs.

(4) Deductibles
In order to eliminate coverage for relatively small losses and to lower premiums, several
deductible plans are available. Deductibles are applicable only to a partial loss of the insured
automobile, not to a total loss.
4.

Endorsements
The standard policy form made by GIROJ includes optional endorsements that modify the typesof coverage above. GIROJ also develops Reference Loss Cost Rates for such endorsements.
Following are examples of the endorsements on the base of the standard policy form made by
GIROJ.
(1) Endorsement to limit drivers to the named insured and spouse
This endorsement applies coverage to only the named insured or his/her spouse1. Accidents are
not covered if they occur when the driver is someone other than the persons specified above.
1. The “spouse” refers to the other party to the marriage of the named insured, including a person who is de facto
married with the named insured, even though the marriage has not been registered, and a person whose genderon the family register is the same as the named insured, but whose relationship is materially the same as that ofmarriage.

(2) Endorsement to limit driver’s age
This endorsement limits coverage to the drivers aged “21 or over” or “26 or over”.

Accidents

are not covered if they occurred when the driver does not meet the specified age requirement.
(3) Endorsement to limit coverage to collision with another vehicle
This endorsement limits coverage to losses caused by collision with another vehicle, and when
the other party’s vehicle is identifiable and owned by someone other than the insured person.

25

Therefore, losses are not covered in such cases as a collision with anything other than an
automobile, or when the insured person cannot identify the registration number or the driver of theother vehicle (e.g., a hit-and-run accident).
(4) Endorsement to limit physical damage coverage Type A
As an option to the physical damage coverage, this endorsement excludes coverage for highfrequency risks while driving the vehicle, i.e., collision, contact and other similar incidents. The
covered losses are limited to fire, explosion, theft, typhoon, flood, tidal wave, and losses caused bycollision with a flying or falling object.
Each of the endorsements above makes the insurance policy more affordable by limiting theextent of coverage.
(5) Endorsement to extend coverage to driving another person’s automobile
This endorsement extends the coverage of third-party liability, bodily injury indemnity(endorsement for self-incurred personal accidents or protection against uninsured automobiles ifbodily injury indemnity coverage is not applicable), and physical damage to insure also an accident
occurring while the named insured or a member of his/her family1 is driving another person’s
automobile.
The limits of the insurer’s liability and details of the coverage under this endorsement arebasically the same as those under the principal coverage, i.e., third-party liability, bodily injury
indemnity (endorsement for self-incurred personal accident or protection against uninsured
automobiles if bodily injury indemnity coverage is not applicable), and physical damage.
If an accident occurs while the insured person is driving an automobile owned by his/her
employer for the business of such employer, or if he/she is driving an automobile without thepermission of the person who is authorized to use the automobile, the accident is not covered by thisendorsement.
1 In this endorsement, a “member of his/her family” refers to the named insured’s spouse, his/her relative wholives in the same household, or his/her child who does not live in the same household and has no history of
marriage.

(6) Endorsement for motorcycles
This endorsement covers losses from an accident which occurred while the named insured or amember of his/her family1 was riding a motorcycle.
Under this endorsement, the motorcycle is treated as the “insured automobile” and third-party
liability coverage and bodily injury indemnity coverage (or endorsement for self-incurred personal26

accident coverage and protection against uninsured automobiles).
Covered motorcycles include not only those owned by the insured person, but also thoseborrowed from other persons.

However, accidents are not covered if they occurred when an

insured person was riding without a legitimate right — e.g., the insured person stole the motorcycleor was riding it without permission.
1 In this endorsement, a “member of his/her family” refers to the named insured’s spouse, his/her relative livingin the same household, or an unmarried child not living in the same household.

(7) Endorsement for bodily injury indemnity fixed-amount coverage
Under this endorsement, benefits are paid when the insured suffers bodily injury, which includes
gas poisoning, due to the following sudden, fortuitous, and externally-caused accidents:An accident arising from the operation of an insured automobileAn accident, during the operation of an insured automobile, caused by a collision with aflying or falling object, fire, explosion, or the falling of the insured automobile.

Under this endorsement, “insured person” includes the following:The person who is in a regular seat, or in the compartment where such a seat is installed, of
the insured automobile

The owner of the insured automobile

The driver of the insured automobile

Of the above, the owner and driver are not only insured while boarding the insured vehicle, butalso if they are run over by the insured automobile while outside the automobile. An insured person
other than the owner and the driver is insured only when on board.
The amount of benefit paid under this endorsement is found below:For death
The full amount of the insured amount if the insured person dies within 180 days from thedate of occurrence of the accident

For permanent disability
Amount obtained by multiplying the insurance amount by the insurance claim payment
ratio corresponding to the permanent disability grade given that the insured person has
developed the permanent disability within 180 days from the date of occurrence of theaccident27

For bodily injuries(1) If the total number of days of hospitalization or outpatient treatment is 5 days or more(limited to cases where the date of hospitalization or outpatient on the 5th day is within 180
days including the date of the accident)…¥100.000(2) Otherwise, when hospitalized or visited within 180 days from the date ofoccurrence of the accident…¥10,000(8) Endorsement for self-incurred personal accident
Benefits under this endorsement are paid when the insured person suffers the following bodily
injury and nobody is liable for damages to the insured person under the Act:The bodily injury of the insured person arising from the operation of the insured automobileThe bodily injury of the insured person caused by fire or explosion, collision with a flying or
falling object, or the falling of the insured automobile itself, while the insured person is in a
regular seat, or in the compartment where such a seat is installed, of the insured automobile
being operated

Further, the “owner” and the “driver” of the insured automobile are eligible for the same
coverage as the insured person whether or not they are in the insured automobile at the time of theaccident. The definitions of “owner” and “driver” of the insured automobile are pursuant to theprovisions of Art 2, Pars 3 and 4 of the Act (see page 9).
(9) Endorsement for protection against uninsured automobiles
Benefits under this endorsement are paid to the insured person who suffers bodily injury due tothe accident involving another automobile which is uninsured.
Here, “uninsured automobile” refers to an automobile which falls under any of the following;

not insured against bodily injury liability under a voluntary automobile insurance
policy,

excluded from coverage with regards to that particular accident under the bodily
injury liability coverage,

insured against bodily injury liability, but the limit of bodily injury liability coverage
is lower than the limit of the insured automobile’s endorsement for protection against
uninsured automobiles.

28

Also, “uninsured automobile” includes an unidentified automobile which has caused a
hit-and-run accident.
Those who are in regular seats, or in the compartment where such seats are installed, of theinsured automobile, are covered.
Benefits under this endorsement are paid only if the insured is killed or has sustained a permanent
disability arising from the ownership, use, or maintenance of the “uninsured automobile.”
The purpose of this endorsement is to ensure that the insured has the same level of compensation
as they would otherwise have been provided by the third-party liability coverage of the insured’s
own policy. Accordingly, the limit of the insurer’s liability under this endorsement is set at thesame amount as the limit of bodily injury liability coverage under the same policy.
(10) Endorsement on the agreement of the value of the insured automobile
Automatically included in the physical damage coverage on most private passenger automobiles,
this endorsement changes the process of determining the amount of insurance claims.
Under this endorsement, claims are paid based on the value of the automobile as agreed upon at
the time of conclusion of the insurance contract, rather than the value of the automobile at the timeof the accident.

This may prevent disagreement between the policyholder and the insurancecompany regarding the assessment of the amount of losses or when the insured amount is less than
the insurable value.
The agreed insurable value is assessed according to the market value of an automobile withidentical use, type, name, model, specification, initial registration year, and degree of wear and tearas the insured automobile at the time of conclusion of the insurance contract.

The agreed value isapplicable throughout the policy period.
In case of a total loss of the insured automobile, the full amount of the agreed insurable value ispaid. In case of a partial loss, the amount of repair costs, less the automobile’s residual value andthe deductible, is paid.
5.

Trends in new product development
Following the approval of differentiated premium rates on September 1, 1997 (see page 32),

various unique insurance products and services have been introduced. In response to growing
competitions and the diversification of consumers’ needs in the automobile insurance market,
insurers have introduced new products including follows:

Property damage excess coverage endorsement



Automobile policies with premium installments

29

Attorney’s fees endorsement



Endorsement for Victim Relief ExpenseTelematics Insurance (i.e., insurance in which each insurance company analyzes themileage and driving behaviors from terminals installed in automobiles and, based on thisinformation, calculates the premium rate based on the results of the analysis of theaccident risk for each driver)

6.

OthersPromotion of automated driving cars and its impact
Due to the evolution of automotive technology in recent years, efforts are being made topromote automated driving cars. In terms of legislation, the Road Traffic Act and the Road
Transport Vehicle Act — which were revised to include provisions related to automated driving, —came into effect in April 2020, making it possible to drive Level 3 automated driving cars on publicroads. Furthermore, in April 2023, the Road Traffic Act — which includes a Level 4 automateddriving operation permission system — was enforced, with application assuming an unmanned andautomated driving service for remote monitoring in limited areas.
Automated driving cars are also being developed; in March 2021, Honda Motor Co., Ltd.
launched a passenger car with an automated driving level of 3, realizing and commercializing
services with an advanced automated driving level.
In addition, and given the spread of automated driving cars, insurance companies havedeveloped a product called "Endorsement for Victim Relief Expense" which covers the cost of
remedying the victim when a bodily injury or property damage accident occurs due to unauthorizedaccess to the automated driving car, etc., and that the insured person is not legally liable fordamages.

30

DEFINITION OF AUTOMATED DRIVING LEVEL1
Level

Narrative Definition

Driver Support – Driver Performs Part or All of the DDT
Level The performance by the driver of the entire DDT, even when enhanced by0
active safety systems.
Level The sustained and ODD3-specific execution by a driving automation1
system of either the lateral or the longitudinal vehicle motion control
subtask of the DDT (but not both simultaneously) with the expectationthat the driver performs the remainder of the DDT.
Level The sustained and ODD-specific execution by a driving automation2
system of both the lateral and longitudinal vehicle motion control subtasksof the DDT with the expectation that the driver completes the OEDR4
subtask and supervises the driving automation system.
Automated Driving – ADS5 (“System”) Performs the Entire DDT (While Engaged)
Level The sustained and ODD-specific performance by an ADS of the entire
3
DDT with the expectation that the DDT fallback-ready user is receptive to
ADS-issued requests to intervene, as well as to DDT performance-relevant
system failures in other vehicle systems, and will respond appropriately.
Level
4
Level
5

The sustained and ODD-specific performance by an ADS of the entire
DDT and DDT fallback without any expectation that a user will need tointervene.
The sustained and unconditional (i.e., not ODD-specific) performance byan ADS of the entire DDT and DDT fallback without any expectation thata user will need to intervene.

1 Referenced from National Police Agency website
2 DDT refers to Dynamic Driving Task
3 ODD refers to Operational Design Domain
4 OEDR refers to Object and Event Detection and Response
5 ADS refers to automated driving systems

31

DDT2
Fallback
DriverDriverDriverFallbackready user
(becomes thedriver during
fallback)
SystemSystemChapter 2. Premium rating
1.

Role of GIROJ
Prior to July 1, 1998, member insurers of a rating organization were required to use the premium

rates calculated by the rating organization under the Rating Organizations Act. Premium rates forvoluntary automobile insurance were calculated by AIRO.

After the revision of the Rating

Organizations Act on July 1, 1998, premium rates for voluntary automobile insurance as calculated
by a rating organization were changed to Reference Loss Cost Rates.
Member insurers of a rating organization have no obligation to use the Reference Loss Cost
Rates. Instead, they can use the Reference Loss Cost Rates as a basis for calculating their own net
pure premium rates which must be filed with the Commissioner of the FSA for approval. In
conjunction with their expense loadings and the net pure premium rates, the premium rates (i.e.,
Operating Premium Rates) are used by the member insurers.

Since July 1, 2002, GIROJ has been

calculating the Reference Loss Cost Rates for voluntary automobile insurance. Reference Loss
Cost Rates are applicable to the coverages for which GIROJ develops standard policy forms, i.e.,
third-party liability coverage, bodily injury indemnity coverage, and physical damage coverage .
2.

Risk classification and premium rating plan
In general, risk classification for voluntary automobile insurance is more complicated than it isfor CALI.
In Japan, risks used to be classified by type, size, and engine displacement of the insured vehicle.
In December 1996, the Japan–US Insurance Talks, a trade negotiation between the two countries,
approved risk-segmented rates for automobile insurance from September 1, 1997.

The risksegmentation factors permitted under the Enforcement Regulations of the Insurance Business Act
include driver’s age, gender, driving history, usage, pattern of use, geography, vehicle type, vehicle
safety features, and multi-car ownership.

The bonus-malus system applies to voluntary

automobile insurance.

32

Chapter 3. Settlement of claims
1.

Bodily injury liability(1) Payment of claims for bodily injury liability
As mentioned earlier, coverage for bodily injury liability under voluntary automobile insurance
acts as excess cover in addition to CALI.

Accordingly, the basic concept of claim settlement

varies little between voluntary automobile insurance and CALI.

Under CALI, however, which

specifically functions as a compensation system for victims of accidents, member insurers use theservices of the Claims Survey Offices operated by GIROJ in order to maintain a high degree of
fairness, objectivity, and uniformity in claims handling (for the same reason, CALMA carriers also
use the services of GIROJ’s Claims Survey Offices).

In voluntary automobile insurance, eachclaim is assessed according to the methods of the individual insurers.
Further, due to its nature, CALI limits comparative negligence in the settlement of claims.

In

voluntary automobile insurance, comparative negligence is applied in a strict manner based on
judicial precedents and other related sources. Therefore, if the victim’s negligence contributed inpart to his/her injury, the amount of benefit is reduced proportionately. Payment from bodily injury
liability coverage is limited to the insured amount.
(2) Unitary claims payment system
Under the unitary claims payment system, even if the policyholder concludes a CALI contract
with one insurer and a voluntary automobile insurance contract with another, the insured only needs
to file the claim with the voluntary automobile insurer.

The voluntary automobile insurer

indemnifies the total amount of the claim and then recovers the portion covered by CALI from the
CALI insurer.
2.

Property damage liability and physical damage(1) Adjuster system
An adjuster is responsible for investigating and evaluating costs for repairing damaged
automobiles.

Adjusters can be divided into two categories, namely, “technical adjusters” and“specific automobile adjusters.”
courses.

Both types of adjusters are required to attend periodic training

Technical adjusters also have to take examinations given by the General Insurance

Association of Japan. All adjusters must be registered with the Association.
An adjuster may work either as an employee of an insurer-owned adjustment subsidiary firm, oras an independent adjuster on a contract basis.

33

(2) Repair research and training center
In July 1973, a repair research and training center, The Jiken Center, was established in order to
conduct studies on damageability and reparability of automobiles, reduction of repair and associatedcosts, and to provide training programs for adjusters and the claims personnel of insurers.
(3) Cognivision, Inc.
Established in October 1974, Cognivision — formerly AUDATEX JAPAN — provides insurers
with computerized systems for estimating repair costs, to help adjusters and the claims personnel toefficiently carry out claims adjustments.
3.

Facilities for settlement of disputes and consultation(1) Japan Center for Settlement of Traffic Accident Disputes
Either or both parties involved in a traffic accident can petition the Japan Center for Settlementof Traffic Accident Disputes (JCSTAD) to conciliate or mediate disputes.

JCSTAD wasestablished in 1974 and reorganized in 1978 as an independent and neutral organization. Its board of
directors is composed of lawyers and legal scholars. JCSTAD has eleven offices in Japan’s major
cities and offers free consultation services.
The center’s expenses are financed by investment gains accrued from CALI premiums.
Neither the Government nor insurers, however, have influence over JCSTAD’s decisions.
Although its decisions do not legally bind either party involved, insurers in general tend to agreewith the decisions made by JCSTAD.
(2) Other organizations
Various organizations such as the General Insurance Association of Japan and GIROJ also
provide victims of traffic accidents with consultation services.

Each prefectural or municipal

government and the Japan Federation of Bar Associations also operate traffic accident counselingoffices.

34

Appendices1. Limits of Insurers’ Liability for CALI
Limit of liability by type of damage
Death………………… ¥30,000,000
Permanent disability… Amount variable according to the grade of disability, as shown in thefollowing table
Injury………………… ¥1,200,000

Permanent Disability Classification Table
Grade
1st grade(1) Permanent disability requiring nursing care

2nd grade




Grade
1st grade

2nd grade

3rd grade

4th grade

5th grade(2) Examples of permanent disability




















6th grade

Severe disabilities in the functions of the nervous system or serious psychologicaldamage, requiring constant nursing care.
Severe disabilities in the functions of the thorax or abdominal organs, requiringconstant nursing care.
Severe disabilities in the functions of the nervous system or serious psychologicaldamage, requiring occasional nursing care.
Severe disabilities in the functions of the thorax or abdominal organs, requiringoccasional nursing care.







Loss of sight of both eyes.
Loss of functions of both mastication and speech.
Loss of both upper limbs above the elbow joint.
Total loss of the functions of both lower limbs.
Loss of vision in one eye and decrease of vision in the other eye to 0.02 or less.
Decrease of vision in both eyes to 0.02 or less.
Loss of both upper limbs above the wrist joint.
Loss of both lower limbs above the ankle joint.
Loss of vision in one eye and decrease of vision in the other eye to 0.06 or less.
Loss of the functions of either mastication or speech.
Severe disabilities in the functions of the nervous system or serious psychologicaldamage resulting in victim’s inability to engage in work for the remainder of his/herlife.
Loss of all digits on both hands.
Decrease of vision in both eyes to 0.06 or less.
Severe disabilities in the functions of both mastication and speech.
Total loss of hearing of both ears.
Loss of one upper limb above the elbow joint.
Loss of vision in one eye and decrease of vision in the other eye to 0.1 or less.
Severe disabilities in the functions of the nervous system or serious psychologicaldamage, causing inability to engage in anything but very light work.
Severe disabilities in the functions of the thorax or abdominal organs, causing
inability to engage in anything but very light work.
Loss of all toes on both feet.
Decrease of vision in both eyes to 0.1 or less.
Severe disabilities in the functions of either mastication or speech.
Decrease of hearing of both ears to the extent of inability to hear a loud voice unless
it is close to the ear.
Loss of five digits on one hand, or loss of four digits including the thumb on one
hand.

36

Limit of
Liability(¥1,000)
40,00030,000Limit of
Liability(¥1,000)
30,00025,90022,19018,89015,74012,960Grade7th grade(2) Examples of permanent disability

8th grade

9th grade10th grade

11th grade

12th grade

13th grade



















14th grade






Loss of vision in one eye and decrease of vision in the other eye to 0.6 or less.
Decrease of hearing of both ears to the extent of inability to hear a normal speaking
voice at a distance of forty centimeters or more.
Disabilities in the functions of the nervous system or serious psychological damage
causing inability to engage in anything but light work.
Loss of both testicles.
Loss of vision in one eye or decrease of vision in the other eye to 0.02 or less.
Motor impediment of the spinal column.
Loss of two digits including the thumb on one hand, or loss of three digits other than
the thumb on one hand.
Loss of all toes on one foot.
Decrease of vision in both eyes to 0.6 or less.
Decrease of vision in one eye to 0.06 or less.
Hemianopia, contraction of the visual field, or distortion of the visual field of botheyes.
Severe disabilities of the genital organs.
Decrease of vision in one eye to 0.1 or less.
Disabilities in the functions of either mastication or speech.
Dental prostheses on fourteen or more teeth.
Severe disabilities in the functions of one of the three major joints of one lower limb.
Severe disabilities in the function of focusing or motor impediment of both eyes.
Severe motor impediment of both eyelids.
Severe residual loss of one eyelid.
Loss of the use of two or more toes on one foot including big toe.
Severe disabilities in the function of focusing or motor impediment of one eye
Severe motor impediment of one eyelid.
Dental prostheses on seven or more teeth.
Deformity of appearance.
Decrease of vision of one eye to 0.6 or less.
Hemianopia, contraction of the visual field, or distortion of the visual field of oneeye.
Loss of parts of eyelids or residual baldness of eyelashes of both eyes.
Loss of the use of the second toe on one foot, loss of the use of two toes including thesecond toe on one foot, or loss of the use of all of the third to fifth toes on one foot.
Loss of part of one eyelid, or residual baldness of eyelashes of one eye.
Dental prostheses on three or more teeth.
Decrease of hearing of one ear to the extent of inability to hear a low speaking voice
at a distance of one meter or more.
Nervous symptoms in affected parts.

37

Limit of
Liability(¥1,000)
10,510

8,190

6,160

4,610

3,310

2,240

1,390

750

2. CALI and CALMA: Underwriting Results by Policy Year
（Unit: ¥100 million）

Underwriting Balance
FiscalYear

Net Pure
Premiums

Claims Paid

On Contracts
Commencing
during the Year

[A]

[B]

[A-B]

2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

6,023
6,022
6,997
7,304
8,491
8,533
8,459
8,634
7,693
7,696
7,624
5,919
5,286

8,410
8,644
8,492
8,766
8,236
8,109
7,812
7,634
7,256
6,552
5,926
5,841
5,867

-2,387-2,622-1,495-1,462
256
424
647
999
436
1,144
1,697
78
-581

Cumulative
Total

Loss Ratio (%)[B/A x 100]416
-2,206-3,927-5,388-5,132-4,708-4,062-3,062-2,626-1,482
215
293
-287

139.6
143.5
121.4
120.0
97.0
95.0
92.4
88.4
94.3
85.1
77.7
98.7
111.0

Note 1. Fiscal year represents the period starting on April 1 of the year and endingon March 31 of the following year.
2. Net pure premiums do not include loadings for agency commissions andadministrative expenses.
(%)(¥100 million)
10,000

150
140

9,000

130
8,000
120
7,000

110

6,000

100
90

5,000
80
4,000

70

3,000

60

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net Pure Premiums

Claims Paid

38

Loss Ratio

3. CALI: Summary of Premium Tariffs (Four largest island of Japan)(Unit: ¥)Period of Contract (months)

Type of Automobile
Passenger Automobile

60

48

37

36

25

24

13

12

Private Use--

Commercial Use

-

-

-

-

27,090 26,240 16,700 15,830

Private Use

-

-

-

-

20,950 20,340 13,480 12,850--

10,630 10,490 8,910 8,760 7,150 7,010--

24,010 23,520 18,040 17,540 11,950 11,440

24,190 23,690 18,160 17,650 12,010 11,500

Small-size Freight Automobile
Small-size Two-wheeled Automobile

Light Automobile

Motorcycle

Subject toInspection
Not Subject toInspection

14,200 12,470-

10,710

-

8,920

-

7,100

13,310 11,760-

10,170

-

8,560

-

6,910

Note 1. Premiums for other types of automobiles as well as for isolated islands and Okinawa Prefecture
are set separately.
2. These premiums are applied to contracts that come into effect on and after April 1, 2023.

39

4. Number of Claims Filed under the Government Plan
for Automotive Safety & Victim’s Aid

For Unidentified Automobiles

For Uninsured Automobiles

Total 〔A〕

Total Number of Claims Filedunder CALI
and the the Government Plan
for Automotive Safety &Victim’s Aid 〔B〕( A/B % )Percentage ofComparison with
Total Claims
Previous Year
(%)
(%)
77.0
-6.5

FiscalYear

Number of Claims

2017

765

2018

545

74.0

-28.8

2019

510

74.6

-6.4

2020

373

68.7

-26.9

2021

291

68.1

-22.0

2017

229

23.0

-12.6

2018

191

26.0

-16.6

2019

174

25.4

-8.9

2020

170

31.3

-2.3

2021

136

31.9

-20.0

2017

994

100.0

-8.0

2018

736

100.0

-26.0

2019

684

100.0

-7.1

2020

543

100.0

-20.6

2021

427

100.0

-21.4

2017

1,312,620(0.08)

2018

1,298,578(0.06)

2019

1,227,438(0.06)

2020

1,042,280(0.05)

2021

972,708(0.04)

Note . Fiscal year represents the period starting on April 1 of the year and endingon March 31 of the following year.

405. Voluntary Automobile Insurance: Underwriting Results(Unit: ¥100 million)

FiscalYear
2017

Direct Premiums Written

Claims Paid

Loss Ratio (%)

[A]

[B]

[B/A x 100]

39,60019,24748.6

2018

39,061

20,14651.6

201939,13019,88450.8

2020

39,70017,22543.4

2021

39,364

17,29343.9

Note. Fiscal year represents the period starting on April 1 of the year and ending on
March 31 of the following year.

(%)(¥100 million)
40,00060

35,00030,00055

25,00020,00050

15,00010,000

45

5,000
0

40

2017

2018

Direct Premiums Written
[A]

2019

2020
Claims Paid
[B]

41

2021
Loss Ratio

6. Diffusion of Voluntary Automobile Insurance
FiscalYear

Number of Bodily Injury Liability
Registered
Number ofRate of
Autos
Autos Insured

Diffusion(%)

Property Damage
Liability
Number of
Autos Insured

Rate of
Diffusion(%)

Bodily Injury
Indemnity
Number of
Autos Insured

Physical Damage

Rate of
Diffusion(%)

Number of
Autos Insured

Rate of
Diffusion
(%)

1970
1975
1980
1985
1990

18,919,020
29,143,445
38,992,023
48,240,555
60,498,850

7,904,979
14,030,538
22,649,019
29,706,514
40,070,950

41.8
48.1
58.1
61.6
66.2

4,656,682
11,396,520
21,085,099
28,699,926
39,434,630

24.6
39.1
54.1
59.5
65.2

2,242,910
3,345,442
3,787,438
8,036,753
14,888,431

11.9
11.5
9.7
16.7
24.6

1995
1996
1997
1998
1999

70,106,536
71,775,647
72,856,583
73,688,389
74,582,612

48,258,649
49,788,637
50,891,251
51,279,031
52,535,433

68.8
69.4
69.9
69.6
70.4

47,759,998
49,323,948
50,442,698
50,896,710
52,095,463

68.1
68.7
69.2
69.1
69.8

20,869,248
22,066,872
22,991,583
23,598,241
24,605,513

29.8
30.7
31.6
32.0
33.0

2000
2001
2002
2003
2004

75,524,973
76,270,813
76,892,517
77,390,245
78,278,880

53,553,711
54,134,416
54,519,452
54,994,077
55,542,038

70.9
71.0
70.9
71.1
71.0

53,133,312
53,745,729
54,167,959
54,733,247
55,417,271

70.4
70.5
70.4
70.7
70.8

25,600,440
26,333,344
26,937,932
27,603,091
28,441,054

33.9
34.5
35.0
35.7
36.3

2005
2006
2007
2008
2009

78,992,060
79,236,095
79,080,762
78,800,542
78,693,495

56,257,902
56,650,803
57,021,243
57,249,160
57,506,453

71.2
71.5
72.1
72.7
73.1

56,183,323
56,606,157
56,999,881
57,233,456
57,463,753

71.1
71.4
72.1
72.6
73.0

29,446,480
30,294,053
31,144,918
31,690,763
32,298,411

37.3
38.2
39.4
40.2
41.0

2010
2011
2012
2013
2014

78,660,773
79,112,584
79,625,203
80,272,571
80,670,393

57,749,537
57,863,842
58,370,686
58,927,196
59,524,652

73.4
73.1
73.3
73.4
73.8

57,713,486
57,841,069
58,361,115
58,937,719
59,548,877

73.4
73.1
73.3
73.4
73.8

52,869,972
54,086,929

65.9
67.0

32,892,031
33,312,774
33,953,388
34,482,134
34,865,363

41.8
42.1
42.6
43.0
43.2

2015
2016
2017
2018
2019

80,900,730
81,260,206
81,563,101
81,789,318
81,849,782

59,948,593
60,412,293
60,830,121
61,206,924
61,366,993

74.1
74.3
74.6
74.8
75.0

59,989,862
60,466,055
60,897,375
61,286,266
61,459,242

74.2
74.4
74.7
74.9
75.1

55,027,725
55,825,435
56,525,646
57,106,525
57,459,536

68.0
68.7
69.3
69.8
70.2

35,161,977
35,627,610
36,190,557
36,863,747
37,385,233

43.5
43.8
44.4
45.1
45.7

2020
2021

82,077,752
82,174,944

61,669,767
61,958,775

75.1
75.4

61,774,509
62,077,489

75.3
75.5

57,929,669
58,314,420

70.6
71.0

37,884,988
38,217,064

46.2
46.5

Note 1. Fiscal year represents the period starting on April 1 of the year and ending on March 31
following year.
2. Number of Registered Autos represents the number of registered automobiles excluding
motorcycles as of the end of each fiscal year.
3. Number of Autos Insured represents the number of insured automobiles excluding
motorcycles as of the end of each fiscal year.
4. Rate of Diffusion represents the ratio of the Number of Autos Insured to the Number ofRegistered Autos in each fiscal year.
5. Figures of 1970 do not include those of Okinawa Prefecture.
6. Number of Autos Insured and Rate of Diffusion are of the figures of insurance companies only,
excluding cooperatives.
The following table shows the rate of diffusion of bodily injury liability coverage
including the figures of cooperatives which belong to JA Kyosai, Zenrosai, Zenjikyo or Kokyoren.
As of March 31, 2022

Insurer
Cooperatives
Insurance companies
Total

Number of Autos Insured
10,931,201
61,958,775
72,889,976
42

Rate of Diffusion (%)
13.3
75.4
88.7

7. Judicial Precedents for Large Awards of Damages
for Traffic Accidents(1) Bodily Injury LiabilityAwards of Type ofDamages Damages

Name of Court

Date ofJudgement

Date of
Accident

Victims
Occupation

Gender/Age(¥10,000)

52,853

D

Yokohama District Court

2011/11/1

2009/12/27

M/41

Medical Practitioner

45,381

PD

Sapporo District Court

2016/3/30

2009/1/7

M/30

Government Employee

45,375PD

Yokohama District Court

2017/7/18

2012/11/1

M/50

Consultant

45,063

PD

Sapporo District Court

2021/8/26

2012/8/17

M/19

College Student

43,961PD

Kagoshima District Court 2016/12/6

2010/11/9

F/58

Teacher

39,725PD

Yokohama District Court

2011/12/27

2003/9/14

M/21

College Student

39,510PD

Nagoya District Court

2011/2/18

2007/4/13

M/20

College Student

39,095

PD

Kobe District Court

2017/3/30

2009/12/3

M/32

Teaching Assistant38,281PD

Nagoya District Court

2005/5/17

1998/5/18

M/29

Company Employee

37,886

PD

Osaka District Court

2007/4/10

2002/12/11

M/23

Company Employee(2) Property Damage LiabilityAwards ofDamagesName of Court

Date ofJudgement

Date of
Accident

Damaged Property(¥10,000)

26,135

Kobe District Court

1994/7/19

1985/5/29

Cargo (clothes, fur)

13,450Tokyo District Court

1996/7/17

1991/2/23

Store (pachinko parlor)

12,036

Fukuoka District Court

1980/7/18

1975/3/1

Train, Railway line, House

11,798Osaka District Court

2011/12/7

2007/4/19

Trailer

11,347

Chiba District Court

1998/10/26

1992/9/14

Train

6,124

Okayama District Court

2000/6/27

1996/9/26

Cargo

4,141

Osaka District Court

2008/5/14

1999/9/25

Cargo

3,391

Nagoya District Court

2004/1/16

2001/3/9

Large-size freight auto, Cargo

3,156
3,052

Tokyo District Court
Tokyo District Court

2001/12/25
2001/8/28

1999/11/5
1999/5/16

Building
Store (surfing shop)

Note 1. Awards of Damages consist of the amount of damage and attorney's fee. The former is the amountof damages before deduction in accordance with comparative negligence and/or before deductionof insurance claims recoverable under the Compulsory Automobile Liability Insurance, etc.
2. D represents death. PD represents permanent disability.
3. M and F represent Male and Female, respectively.

43

8. Number of Registered Automobiles andVictims of Road Traffic Accidents

Year

Registered
Automobiles

Number of
Traffic Accident Victims
InjuryDeath

Number of Victims per 1,000
Automobiles
InjuryDeath

NumberIndex

NumberIndex

NumberIndex

Number Index

1960
1965
1970
1975
1980
1985
1990

3,302,072
7,897,499
18,586,503
28,934,020
38,938,996
48,268,232
60,650,629

100
239
563
876
1,179
1,462
1,837

289,156
425,666
981,096
622,467
598,719
681,346
790,295

100
147
339
215
207
236
273

12,055
12,484
16,765
10,792
8,760
9,261
11,227

100
104
139
90
73
77
93

87.6 100.0
53.9 61.5
52.8 60.3
21.5 24.5
15.4 17.6
14.1 16.1
13.0 14.8

3.65
1.58
0.90
0.37
0.22
0.19
0.19

100.0
43.3
24.7
10.1
6.0
5.2
5.2

1995
1996
1997
1998
1999

70,073,544
72,030,003
73,218,535
74,009,080
74,914,679

2,122
2,181
2,217
2,241
2,269

922,677
942,204
958,925
990,676
1,050,399

319
326
332
343
363

10,684
9,943
9,642
9,214
9,012

89
82
80
76
75

13.2
13.1
13.1
13.4
14.0

15.1
15.0
15.0
15.3
16.0

0.15
0.14
0.13
0.12
0.12

4.1
3.8
3.6
3.3
3.3

2000
2001
2002
2003
2004

75,864,710
76,664,286
77,304,313
77,580,658
78,091,097

2,298
2,322
2,341
2,350
2,365

1,155,707
1,181,039
1,168,029
1,181,681
1,183,616

400
408
404
409
409

9,073
8,757
8,396
7,768
7,425

75
73
70
64
62

15.2
15.4
15.1
15.2
15.2

17.4
17.6
17.2
17.4
17.4

0.12
0.11
0.11
0.10
0.09

3.3
3.0
3.0
2.7
2.5

2005
2006
2007
2008
2009

79,207,207
79,452,557
79,371,014
79,236,532
79,042,056

2,399
2,406
2,404
2,400
2,394

1,157,115
1,098,566
1,034,653
945,703911,215

400
380
358
327
315

6,927
6,403
5,782
5,197
4,968

57
53
48
43
41

14.6
13.8
13.0
11.9
11.5

16.7
15.8
14.8
13.6
13.1

0.09
0.08
0.07
0.07
0.06

2.5
2.2
1.9
1.9
1.6

2010
2011
2012
2013
2014

79,091,536
79,241,738
79,965,203
80,411,439
81,009,554

2,395
2,400
2,422
2,435
2,453

896,294
854,610825,396
781,494
711,374

310
296
285
270
246

4,922
4,663
4,411
4,373
4,113

41
39
37
36
34

11.3
10.8
10.3
9.7
8.8

12.9
12.3
11.8
11.1
10.0

0.06
0.06
0.06
0.05
0.05

1.6
1.6
1.6
1.4
1.4

2015
2016
2017
2018
2019

81,246,351
81,602,046
81,946,036
82,192,828
82,341,762

2,460
2,471
2,482
2,489
2,494

666,023
618,853
580,850
525,846
461,775

230
214
201
182
160

4,117
3,904
3,694
3,532
3,215

34
32
31
29
27

8.2
7.6
7.1
6.4
5.6

9.4
8.7
8.1
7.3
6.4

0.05
0.05
0.05
0.04
0.04

1.4
1.4
1.4
1.1
1.1

2020
2021

82,471,678
82,565,091

2,498
2,500

369,476
362,131

128
125

2,839
2,636

24
22

4.5
4.4

5.1
5.0

0.03
0.03

0.8
0.8

Number Index

Note 1. Figures of and before 1970 do not include those of Okinawa Prefecture.
2. Number of Registered Automobiles represents the number of registered automobiles excluding
motorcycles as of the end of each calendar year.
3. Injury includes permanent disability.
4. Number of Death represents the number of those who died within twenty four hours ofaccidents occurred during each calendar year.
44

Number of Registered Automobiles and Victims of Road Traffic Accidents

Automobiles
90,000,000

Injury1,300,000

1,200,000
80,000,000
1,100,000
70,000,000

1,000,000

Injury60,000,000

900,000

800,000
50,000,000

700,000

Death

600,000

40,000,000

500,000
30,000,000

400,000

300,000

20,000,000

Injury200,000
10,000,000
100,000

Automobiles
00'60 '65 '70 '75 '80 '85 '90 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Year

InjuryNumber of Road Traffic Accident Victims per 1,000 Registered Automobiles

90

Death
5.0

80

4.0
70

60

Injury
3.0

50

40
2.0
30

20
1.0

10

Death
0

Year

0.0
'60 '65 '70 '75 '80 '85 '90 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

45

Death

＜References＞
Automobile Inspection & Registration Information Association [2021], Number of Registered
Automobiles：Monthly Report December 2021, December 2021.
Financial Services Agency website,
https://www.fsa.go.jp/singi/singi_zidousya/siryou/20230113/01.pdf
Hoken Kenkyujo Ltd. [2022], Annual Special Issue of Insurance: The Statistics of Japanese Non-Life
Insurance Business, 2021, December 2022.
Jidousya-Hoken Journal Corporation [2017], JIHO-JOURNAL, 1981, January 2017.
Jidousya-Hoken Journal Corporation [2022], JIHO-JOURNAL, 2108, April 2022.
National Police Agency, Summary of levels of driving automation,
https://www.npa.go.jp/english/bureau/traffic/level.pdf
National Police Agency, Traffic Rules for Specified Small Motorized Bicycles (Electric Scooters),
https://www.npa.go.jp/english/bureau/traffic/document/Traffic_Rules_for_Specified_Small_Mot
orized_Bicycles.pdf
National Police Agency website,
https://www.npa.go.jp/english/bureau/traffic/selfdriving.html
The Hoken Mainichi Shinbun Co., Ltd. [2014], Hoken Mainichi Shinbun, 2014, March 12.
Tort Law Association ed. [2001], Kotsujikominjisaibanreishu（Civil Court Cases of Car Accidents）,
33(3), August 2001.

Automobile Insurance in Japan
２０２３年 10 月発行
発行

損害保険料率算出機構（損保料率機構）〒163-1029

東京都新宿区西新宿３－７－１
新宿パークタワー29F
TEL

03（6758）1300（代表）URL

https://www.giroj.or.jp

Printed in Japan October 2023