Information Update of Revisions
in Compulsory Automobile Liability Insurance Standard Full Rates
General Insurance Rating Organization of Japan revised Standard Full Rates for Compulsory Automobile Liability
Insurance (CALI). An outline of these revisions is hereby presented for your reference.

1. Outline and Background of Revisions
A new category for specified small motorized bicycle will be established amongStandard Full Rates for CALI. ** It is assumed that these revised rates are to be applied to policies with policy periods beginning on orafter April 1, 2024.

Due to the enforcement of the Act Partially Amending the Road Traffic Act (Act No. 32 of 2022) and theamendment of the Safety Standards of the Road Transportation Vehicles (Ministry of Transport Order No. 67 of1951), a new category of the “specified small motorized bicycle” was created among the motorized bicycle in
July 2023, with other motorized bicycles defined as the “general motorized bicycle.”
The specified small motorized bicycles, including electric kick scooters and similar vehicles, must be covered
with compulsory automobile liability insurance (mutual aid).
Type ofvehicle

Motorized
bicycle*Totalemissions
Up to125cc(Ratedoutput:Up to1kW)*Two-wheeled only

Legalspeed limit

Type 1:30km/h
Type 2:60km/h

Type ofvehicle
Generalmotorized
bicycleSpecifiedsmall
motorizedbicycle

Length

Width

Rated
outputLegal speed
limit

Motorized bicycles other than specified small
motorized bicycles
Up to
1.9m

Up to0.6m

Up to
0.60kW

20km/h**“Exceptional specified small motorized bicycle” can ride on sidewalks
at up to 6 km/h.

Compulsory automobile liability insurance (mutual aid) applies premiums in categories according to the rated
output, size, and other characteristics of the vehicle.
Given that the size and speed limits for specified small motorized bicycles are set lower than those forexisting motorized bicycles, and considering they are a new type of mobility with different risk characteristics, a
new category of Standard Full Rates will be established for these vehicles.

2. Principles for Rate Calculation
Since there are currently no insurance statistics of CALI (mutual aid) for specified small motorized bicycles,
Standard Full Rates for these vehicles was calculated based on Standard Full Rates* for general motorized
bicycles by reflecting the differences in risk characteristics between general motorized bicycles and specified
small motorized bicycles, to the extent quantifiable at this time.
* The scope of calculation is limited to the pure premium rate used to pay claims, and the portion for expense loading used to cover
the costs of loss adjustment, within Standard Full Rates.

-1-Risk characteristics can be divided into two components: the probability of an accident occurring (“accidentrate”;frequency) and the amount of insurance payment per accident (“average settlement amount”;severity).
The following principles are used to estimate the differences in each.
(1) Accident rate
Considering the number of traffic accidents since July 2023 (see table below), and considering theinability to confirm the number of ownership of the specified small motorized bicycle, it is deemed that there
is no difference in the accident rate at this time.
Number of traffic accidents involving specified small motorized bicycles (2023)
July

AugustSeptemberOctoberNovember

710211611Single vehicle

43974

Involving a pedestrian

22721

Involving a bicycle

02021Total* From data on the National Police Agency website* Of the above, “accidents involving pedestrians” and “accidents involving bicycles” are expected to be the main subject ofCALI (mutual aid) payouts.

(2) Average settlement amount
A comparison of CALI (mutual aid) insurance data for three categories of vehicle types which aremainly two-wheeled (small-size two-wheeled automobiles, light automobiles (not subject to inspection),and general motorized bicycles) confirmed that smaller vehicle types in terms of weight and speed had
smaller average settlement amount (see the graph below for examples). In this relationship, the differencein average settlement amount between general motorized bicycles and specified small motorized bicycles
is estimated based on the difference in weight and speed (kinetic energy) of the two (which resulted in a
16.8% lower average settlement amount for specified small motorized bicycles than for general motorized
bicycles).
Relationship between average settlement amount (in accidents causing injury) and kinetic energy

Averagesettlementamount (inaccidentscausinginjury)

General motorizedbicycle

Light automobile(not subject to inspection)

Specified small
motorized bicycle

Small-size two-wheeled
automobile

Insurance data
Estimate based on relationship
Kinetic energy

3. Examples of Standard Full Rates
The newly calculated insurance premiums (mutual insurance premiums) for specified small motorized
bicycles will apply to policies beginning on or after April 1, 2024.
Standard Full Rates depend on the conditions of the policy (region, policy length, etc.), but some key
examples are shown on the next page.

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For regions other than remote islands and Okinawa Prefecture:
Type of vehicle
General motorized
bicycle*Policy period: 24 months

Policy period: 36 months

policy period: 60 months(two- year policies)(three-year policies)(five- year policies)

8,560 yen

10,170 yen

13,310 yen

8,040 yen

9,400 yen

12,040 yen

Newly introduced:
Specified small
motorized bicycle* There will be no change in the premiums for general motorized bicycles.

Since the insurance premiums (mutual insurance premiums) for specified small motorized bicycles will belower than the current insurance premiums (mutual insurance premiums) for motorized bicycles, a portion of
the insurance premiums (mutual insurance premiums) for specified small motorized bicycles that are charged
at the current rate for motorized bicycles may be refunded based on the term of insurance (mutual aid), policy
date, and other factors, provided that certain requirements are met. For more information, please see thewebsite of the General Insurance Association of Japan.

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