AUTOMOBILE
LIABILITYSECURITY ACT&RELATED CABINET ORDER,
MINISTERIAL ORDINANCE
AND NOTIFICATION
Including:
Policy Conditions for Automobile Liability Insurance

As of May 2, 2011

Translated and published byGeneral Insurance Rating Organization of Japan

AUTOMOBILE
LIABILITYSECURITY ACT&RELATED CABINET ORDER,
MINISTERIAL ORDINANCE
AND NOTIFICATION
Including:
Policy Conditions for Automobile Liability Insurance

As of May 2, 2011

Translated and published byGeneral Insurance Rating Organization of JapanTABLE OF CONTENTS
目次
AUTOMOBILE LIABILITY SECURITY ACT (Act No.97, July 29, 1955) ............................ 1
自動車損害賠償保障法（昭和 30 年 7 月 29 日法律第 97 号）

CHAPTER I. GENERAL PROVISIONS ............................................................................... 3
第一章 総則CHAPTER II. AUTOMOBILE LIABILITY.......................................................................... 3
第二章 自動車損害賠償責任

CHAPTER III. AUTOMOBILE LIABILITY INSURANCE AND AUTOMOBILE
LIABILITY MUTUAL AID .......................................................................... 3
第三章 自動車損害賠償責任保険及び自動車損害賠償責任共済

Section 1.

Compulsory Conclusion of Automobile Liability Insurance Contract
or Automobile Liability Mutual Aid Contract ................................................ 3

第一節

自動車損害賠償責任保険契約又は自動車損害賠償責任共済契約の締結強制

Section 2.

Automobile Liability Insurance Contract and Automobile Liability
Mutual Aid Contract ....................................................................................... 8

第二節

自動車損害賠償責任保険契約及び自動車損害賠償責任共済契約

Section 2-2. Designated Dispute Settlement Organizations ............................................. 16
第二節の二 指定紛争処理機関

Section 3.

Automobile Liability Insurance Business and Automobile Liability
Mutual Aid Business .................................................................................... 21

第三節

自動車損害賠償責任保険事業及び自動車損害賠償責任共済事業

Section 4.

Automobile Liability Insurance Council ...................................................... 32

第四節

自動車損害賠償責任保険審議会

CHAPTER IV. GOVERNMENT’S AUTOMOBILE LIABILITY COMPENSATION
BUSINESS ................................................................................................... 32
第四章 政府の自動車損害賠償保障事業

CHAPTER V. MISCELLANEOUS PROVISIONS ............................................................. 36
第五章 雑則CHAPTER VI. PENAL PROVISIONS ................................................................................ 38
第六章 罰則Supplementary Provisions [Extract] ..................................................................................... 40
附則 抄Supplementary Provisions (Act No. 65, June 13, 2008) [Extract] ....................................... 42
附則（平成 20 年 6 月 13 日法律第 65 号） 抄

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT (Cabinet Order No. 286, October 18, 1955) .................................................................... 43
自動車損害賠償保障法施行令（昭和 30 年 10 月 18 日政令第 286 号）

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY
SECURITY ACT (Ordinance of the Ministry of Transport No. 66, December 1, 1955) ........ 61
自動車損害賠償保障法施行規則（昭和 30 年 12 月 1 日運輸省令第 66 号）

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC. UNDER
AUTOMOBILE LIABILITY INSURANCE, AND PAYMENT OF MUTUAL AID
CLAIM, ETC. UNDER AUTOMOBILE LIABILITY MUTUAL AID(Notification of the Financial Services Agency and the Ministry of Land, Infrastructure,
Transport and Tourism No. 1, December 21, 2001) ............................................................... 71
自動車損害賠償責任保険の保険金等及び自動車損害賠償責任共済の共済金等の支払基準（平成 13 年 12 月 21 日金融庁、国土交通省告示第 1 号）

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE(December 1, 1955) ................................................................................................................ 87
自動車損害賠償責任保険普通保険約款（昭和 30 年 12 月 1 日）

ORDINANCE CONCERNING MEASURES TO ACHIEVE PROPER PAYMENT OF
AUTOMOBILE LIABILITY INSURANCE CLAIMS, ETC., AND AUTOMOBILE
LIABILITY MUTUAL AID CLAIMS, ETC.
(Ordinance of the Cabinet Office and the Ministry of Land, Infrastructure, Transport
and Tourism No. 2, December 21, 2001) ............................................................................... 97
自動車損害賠償責任保険の保険金等及び自動車損害賠償責任共済の共済金等の支払の適正化のための措置に関する命令（平成 13 年 12 月 21 日内閣府・国土交通省令第 2 号）

CABINET ORDER PROVIDING FOR AMOUNTS OF CONTRIBUTIONS, ETC.,
FOR AUTOMOBILE LIABILITY COMPENSATION BUSINESS(Cabinet Order No. 316, December 1, 1955) ......................................................................... 104
自動車損害賠償保障事業賦課金等の金額を定める政令（昭和 30 年 12 月 1 日政令第 316 号）

RULES FOR AUTOMOBILE LIABILITY COMPENSATION BUSINESSENTRUSTMENT CONTRACTS(Ordinance of the Ministry of Transport No. 3, February 6, 1956)........................................ 106
自動車損害賠償保障事業業務委託契約準則（昭和 31 年 2 月 6 日運輸省令第 3 号）

ORDER ON THE ACCUMULATION, ETC., OF RESERVE FUNDS PROVIDED IN
PARAGRAPH 1, ARTICLE 28-3 OF THE AUTOMOBILE LIABILITY SECURITY
ACT (Ordinance of the Ministry of Finance, the Ministry of Health and Welfare,the Ministry of Agriculture, Forestry and Fisheries, the Ministry of International
Trade and Industry, and the Ministry of Transport No. 1, March 13, 1997) .......................... 109
自動車損害賠償保障法第二十八条の三第一項に規定する準備金の積立て等に関する命令（平成 9 年 3 月 13 日大蔵省・厚生省・農林水産省・通商産業省・運輸省令第 1 号）

CABINET OFFICE ORDINANCE CONCERNING REPORTS TO NON-LIFE
INSURANCE RATING ORGANIZARIONS BY INSURANCE COMPANIES AND
MUTUAL AID COOPERATIVES PROVIDED IN PARAGRAPH 1, ARTICLE 29-2
OF THE AUTOMOBILE LIABILITY SECURITY ACT(Ordinance of the Ministry of Finance No. 61, November 29, 1996) .................................... 114
自動車損害賠償保障法第二十九条の二第一項に規定する保険会社及び組合の料率団体に対する報告に関する内閣府令（平成 8 年 11 月 29 日大蔵省令第 61 号）

SPECIFICATION OF NON-LIFE INSURANCE RATING ORGANIZATIONDESIGNATED BY THE MINISTER OF FINANCE AS AN ORGANIZATIONTHAT CALCULATES LIABILITY INSURANCE PREMIUM RATES BASED ON
THE PROVISIONS OF PARAGRAPH 1, ARTICLE 29-2 OF THE AUTOMOBILE
LIABILITY SECURITY ACT(Notification of the Ministry of Finance No. 337, November 29, 1996) ............................... 128
自動車損害賠償保障法第二十九条の二第一項の規定に基づく責任保険の保険料率の算出を行うものとして大蔵大臣の指定する損害保険料率算出団体を定める件（平成 8 年 11 月 29 日大蔵省告示第 337 号）

AUTOMOBILE LIABILITY INSURANCE COUNCIL ORDER(Cabinet Order No. 264, June 7, 2000) .................................................................................. 129
自動車損害賠償責任保険審議会令（平成 12 年 6 月 7 日政令第 264 号）

ACT ON SPECIAL ACCOUNTS [Excerpt] (Act No. 23 of March 31, 2007)...................... 131
特別会計に関する法律（抜萃）（平成 19 年 3 月 31 日法律第 23 号）

ORDER FOR ENFORCEMENT OF THE ACT ON SPECIAL ACCOUNTS [Excerpt](Cabinet Order No. 124 of March 31, 2007) .......................................................................... 139
特別会計に関する法律施行令（抜萃）（平成 19 年 3 月 31 日政令第 124 号）

The acts, orders, ordinances, notifications and policy conditions contained herein remained in
effect up to May 2, 2011.
この冊子に掲載されている法律・政令・省令・告示・約款は、2011 年 5 月 2 日現在公布されているものです。

AUTOMOBILE LIABILITY SECURITY ACTAUTOMOBILE LIABILITY SECURITY ACT(Act No. 97, July 29, 1955)
History of Amendment
No. 94, May 4, 1956
No. 148, June 12, 1956
No. 148, April 20, 1959
No. 106, May 4, 1962
No. 161, September 15, 1962
No. 109, June 18, 1964
No. 90, June 29, 1966
No. 73, July 20, 1967
No. 68, August 1, 1969
No. 46, May 4, 1970
No. 62, June 12, 1972
No. 78, December 2, 1983
No. 25, May 8, 1984
No. 46, May 8, 1986
No. 22, April 10, 1989
No. 82, December 19, 1989
No. 15, March 30, 1991
No. 87, June 26, 1992
No. 8, March 31, 1993
No. 86, July 4, 1994
No. 106, June 7, 1995
No. 137, December 20, 1995
No. 94, June 21, 1996
No. 59, May 23, 1997
No. 102, June 20, 1997
No. 121, December 12, 1997
No. 74, May 27, 1998
No. 106, June 15, 1998
No. 107, June 15, 1998
No.131, October 16, 1998
No. 87, July 16, 1999
No. 102, July 16, 1999
No.160, December 22, 1999
No. 83, June 29, 2001
No. 45, May 29, 2002
No. 183, December 18, 2002

No. 107, June 18, 2004
No.87, July 26, 2005
No. 106, November 2, 2005
No.50, June 2, 2006
No. 75, June 15, 2006
No. 23, March 31, 2007
No. 47, May 16, 2007
No.57, June 6, 2008
No. 65, June 13, 20081

AUTOMOBILE LIABILITY SECURITY ACTCONTENTS
CHAPTER I.

GENERAL PROVISIONSCHAPTER II.

AUTOMOBILE LIABILITY

CHAPTER III. AUTOMOBILE LIABILITY INSURANCE AND
AUTOMOBILE LIABILITY MUTUAL AID
Section 1.

Compulsory Conclusion of Automobile Liability
Insurance Contract or Automobile Liability Mutual Aid Contract

Section 2.

Automobile Liability Insurance Contract andAutomobile Liability Mutual Aid Contract

Section 2-2.

Designated Dispute Settlement Organizations

Section 3.

Automobile Liability Insurance Business andAutomobile Liability Mutual Aid Business

Section 4.

Automobile Liability Insurance Council

CHAPTER IV.

GOVERNMENT’S AUTOMOBILE LIABILITYCOMPENSATION BUSINESSCHAPTER V.

MISCELLANEOUS PROVISIONSCHAPTER VI. PENAL PROVISIONS
Supplementary Provisions

2

AUTOMOBILE LIABILITY SECURITY ACTCHAPTER I.

GENERAL PROVISIONS(Purposes of this Act)
Article 1. This Act, by establishing a system for securing compensation for damage in thecase of death of or bodily injury to person caused by the operation of automobile, aims toprotect the victims and also to contribute to sound development of transportation byautomobiles.
(Definitions)
Article 2. The term “automobile” used in this Act means any automobile as stipulated inparagraph 2, Article 2 of the Road Vehicles Act (Act No. 185, 1951) (excluding
small-size special purpose automobile manufactured for the purpose of use in agriculturalwork) and motorcycle as stipulated in paragraph 3, the same Article.
2. The term “operation” used in this Act means to use an automobile in accordance with theproper use of the devices thereof, whether or not it carries persons or goods.
3. The term “owner” used in this Act means the owner of an automobile or any other person
entitled to use it, and who operates such automobile for his /her benefit.
4. The term “driver” used in this Act means a person who drives or assists in driving an
automobile for another person's benefit.
CHAPTER II.

AUTOMOBILE LIABILITY(Automobile liability)
Article 3. If a person operating an automobile for his/her benefit causes death of or bodily
injury to any other person through such operation, such person shall be liable tocompensate for damage to the victim. However, he/she shall not be liable if he/she provesthat neither he/she nor the driver failed to exercise due diligence in operating theautomobile and that there was an intention or negligence on the part of the victim or athird party other than the driver and that there was no structural defect or functional
disorder in the automobile.
(Application of the Civil Code)
Article 4. Besides the provision of the preceding Article, the provisions of the Civil Code(Act No. 89, 1896) shall be applied to the liability for compensation of a person who
operates an automobile for his/her benefit.
CHAPTER III.

AUTOMOBILE LIABILITY INSURANCE AND AUTOMOBILE
LIABILITY MUTUAL AID

Section 1. Compulsory Conclusion of Automobile Liability Insurance Contract orAutomobile Liability Mutual Aid Contract(Compulsory conclusion of contract for the liability insurance or liability mutual aid)
Article 5. No automobile shall be operated unless a contract for automobile liability insurance(hereinafter referred to as “liability insurance”) or a contract for automobile liability

3

AUTOMOBILE LIABILITY SECURITY ACT

mutual aid (hereinafter referred to as “liability mutual aid”) as provided in this Act has
been concluded.
(Insurer and insurer of mutual aid liability)
Article 6. The insurer of the liability insurance (hereinafter referred to as “insurancecompany”) shall be a non-life insurance company as stipulated in paragraph 4, Article 2 ofthe Insurance Business Act (Act No. 105, 1995) or a foreign non-life insurance company,
etc. as stipulated in paragraph 9, the same Article who underwrites the liability insurance.
2. The insurer of mutual aid liability for liability mutual aid shall be a cooperative society(hereinafter referred to as “cooperative”) as set forth in each of the following items:(1) an agricultural cooperative or a federation of agricultural cooperatives (hereinafterreferred to as “agricultural cooperatives, etc.”) engaged in the liability mutual aid
business under the Agricultural Cooperatives Association Act (Act No. 132, 1947)(2) a consumer cooperative or a federation of consumer cooperatives (hereinafterreferred to as “consumer cooperatives, etc.”) engaged in the liability mutual aid
business under the Consumer Livelihood Cooperative Association Act (Act No. 200,
1948)(3) a common facility cooperative or a federation of common facility cooperatives(hereinafter referred to as “common facility cooperatives, etc.”) engaged in theliability of mutual aid business under the Act on the Cooperative Associations of
Small and Medium Enterprises, etc. (Act No.. 181, 1949)(Certificate of automobile liability insurance)
Article 7. The insurance company shall issue a certificate of automobile liability insurance tothe policyholder on the automobile if the premium is paid.
2. If there is any change in the matters described in the said certificate of automobile liability
insurance, the policyholder shall have the insurance company enter such changes on thecertificate of automobile liability insurance.
3. If the insurance company receives a request for an entry pursuant to the provision of thepreceding paragraph, such insurance company shall make the entry without delay.
However, it shall not be necessary in the case where, in spite of having made a claim
pursuant to the provision of paragraphs 3 or 4, Article 22, the payment has not been made.
4. If the certificate of automobile liability insurance is lost or damaged or becomes
indiscernible, the policyholder may require the insurance company to reissue it.
5. Matters to be described and other details concerning the certificate of automobile liability
insurance shall be provided in Ordinance of Ministry of Land, Infrastructure, Transport
and Tourism.
6. The provision of Article 6 of the Insurance Act (Act No. 56, 2008) shall not be applied to
the liability insurance.
(Maintaining the certificate of automobile liability insurance)
Article 8. No automobile shall be operated unless the certificate of automobile liability
insurance (the certificate of automobile liability insurance so entered in the case of thecertificate of automobile liability insurance to be entered the changed matter pursuant to4

AUTOMOBILE LIABILITY SECURITY ACT

the provision of paragraph 2, the preceding Article; the same shall be applied in thefollowing Article) is kept therein.
(Presentation of the certificate of automobile liability insurance)
Article 9. A person who intends to receive any of the dispositions as stipulated in Article 4,paragraph 1 of Article 34, paragraph 3 of Article 36-2 , paragraph 1 of Article 60 ,paragraph 2 of Article 62 (including cases where the provision shall be applied mutatis
mutandis in paragraph 3, Article 63 and paragraph 4, Article 67),paragraph 1 of Article 67(only the part related to the change in the user of an automobile), paragraph 4 of Article
71 or Article 97-3 of the Road Vehicles Act shall present the certificate of automobile
liability insurance to the competent administrative agencies concerned (or the Light
Automobile Inspection Organization if the provision of Article 74-4 of the same Act are
applied; the same shall be applied in the following paragraph to paragraph 5). However, inthe case where a safety regulation conforming certificate is presented pursuant to theprovision of paragraph 8, Article 94-5 of the same Act, if the person intends to receive a
disposition as stipulated in paragraph 2, Article 62 of the same Act, such person may, inplace of presentation of the certificate of automobile liability insurance, submit a copy ofthe certificate of automobile liability insurance prepared according to the method asprovided in Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
2. In the case of the main text of the preceding paragraph, a person who intends to receive
any of the dispositions provided in the main text of said paragraph may, as provided in the
Cabinet Order, by entrusting the insurance company, provide the items that should be
described in the said certificate of automobile liability insurance by electromagnetic
means (meaning means utilizing an electronic information processing system or othermeans utilizing information and communications technology as provided in Ordinance ofMinistry of Land, Infrastructure, Transport and Tourism) to registration information
processing organizations provided in paragraph 4, Article 7 of the Road Vehicles Act(referred to as “registration information processing organizations” in the following
paragraph and paragraph 4).
3. If the items that should be described in the certificate of automobile liability insurance areprovided to registration information processing organizations pursuant to the provisions of
the preceding paragraph, a person who intends to receive any of the dispositions provided
in the main text of paragraph 1 shall be considered to have presented the said certificate ofautomobile liability insurance to the competent administrative agencies.
4. In the case of the preceding paragraph, the competent administrative agencies shall refernecessary matters to registration information processing organizations as stipulated in theprovisions of Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
5. The competent administrative agencies concerned shall not exercise any of thedispositions mentioned in paragraph 1 unless the certificate of automobile liability
insurance is presented or a copy thereof is submitted. The same shall be applied in thecase where, with respect to automobile other than light automobile which is not subject toinspection as stipulated in paragraph 1, Article 58 of the Road Transport Vehicle Act, the5

AUTOMOBILE LIABILITY SECURITY ACT

insurance period described in the certificate of automobile liability insurance or a copy
thereof presented or submitted does not cover the whole period up to the expiration dateof the effective period to be described in the motor vehicle inspection certificate
concerned or of the effective period of permission for temporary operation or of a written
permission for operation for forwarding the automobile to a certain location.
6. A person who intends to apply for issue of a safety regulations conforming certificate anda safety regulations conforming sticker pursuant to the provision of paragraph 1, Article
94-5 of the Road Transport Vehicle Act shall present the certificate of automobile liability
insurance to a designated automobile maintenance business operator under paragraph 1,
Article 94-3 of the same Act.
7. If the certificate of automobile liability insurance is not presented pursuant to theprovision of the preceding paragraph or if the insurance period described in the presented
certificate of automobile liability insurance does not overlap the entire period up to the
expiration date of the effective period of the motor vehicle inspection certificate as
stipulated in paragraph 1, Article 61 of the Road Transport Vehicle Act to be described
therein in the case where the safety regulations conforming certificate was presented
pursuant to the provision of paragraph 8, Article 94-5 of the same Act, notwithstanding theprovision of paragraph 1, Article 94-5 of the same Act, the designated automobile
maintenance business operator shall not issue the safety regulations conforming certificate
and the safety regulations conforming sticker.
(Insurance sticker)
Article 9-2. If the insurance company has issued the certificate of automobile liability
insurance pursuant to the provision of paragraph 1, Article 7 on a light automobile which
is not subject to inspection, a motorcycle or an automobile registered in the Contracting
State (meaning an automobile registered in the Contracting State as stipulated inparagraph 2, Article 2 of the Act concerning Special Treatment, etc. to the Road Transport
Vehicle Act regarding the Enforcement of the Convention on Road Traffic (Act No. 109,1964); the same shall be applied hereinafter), the insurance company shall issue an
insurance sticker to the said policyholder.
2. On the insurance sticker, the expiration date of the insurance period shall be indicated asprovided in Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
3. The effective period of the insurance sticker shall coincide with that of the insurance
period.
4. In the case where the insurance sticker is lost or damaged or becomes indiscernible or inother cases as provided in Ordinance of Ministry of Land, Infrastructure, Transport andTourism, the policyholder may require the insurance company to reissue it.
5. The form of and other details concerning the insurance sticker shall be provided in the
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
Article 9-3. A light automobile which is not subject to inspection, a motorcycle or an
automobile registered in the Contracting State shall not be operated unless an insurance

6

AUTOMOBILE LIABILITY SECURITY ACT

sticker is displayed as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism.
2. The insurance sticker shall not be displayed on a light automobile which is not subject toinspection, a motorcycle or an automobile registered in the Contracting State other than
the said light automobile not subject to inspection, the said motorcycle or the said
automobile registered in the Contracting State.
3. The insurance sticker, the effective period of which has expired, shall not be displayed ona light automobile which is not subject to inspection, a motorcycle or an automobile
registered in the Contracting State.
(Certificate of automobile liability mutual aid and mutual aid sticker)
Article 9-4. The provisions of Article 7 and Article 9-2 shall be applied mutatis mutandis tothe liability mutual aid. In this case, “insurance company” shall be read as “cooperative,”“premium” as “mutual aid premium,” “policyholder” as “policyholder of mutual aid,”“certificate of automobile liability insurance,” as “certificate of automobile liability
mutual aid,” “insurance sticker” as “mutual aid sticker,” “insurance period” as “mutual aid
period” in these provisions, and “paragraph 3 or paragraph 4, Article 22” as “paragraph 3
or paragraph 4, Article 22 which shall be applied mutatis mutandis in paragraph 1, Article23-3” in paragraph 3, Article 7, “liability insurance” as “liability mutual aid” in paragrah
6, the same Article, and “paragraph 1, Article 7” as “paragraph 1, Article 7 which shall beapplied mutatis mutandis in Article 9-4” in paragraph 1, Article 9-2.
Article 9-5. With respect to application of the provisions of Article 8 and Article 9 related toautomobiles for which a contract of liability mutual aid is concluded, in Article 8(including the title), the title of Article 9, and paragraph 1 through paragraph 3 andparagraph 5 through paragraph 7, the same Article, “certificate of automobile liability
insurance” shall be read as “certificate of automobile liability mutual aid”; in Article 8,“paragraph 2, the preceding Article” as “paragraph 2, Article 7 which shall be appliedmutatis mutandis in Article 9-4”; in paragraph 2, Article 9, “insurance company” as“cooperative”; in paragraph 5 and paragraph 7, the same Article, “insurance period” as“mutual aid period.”
2. With respect to application of the provision of paragraph 1, Article 9-3 related to a light
automobile which is not subject to inspection, a motorcycle and an automobile registeredin the Contracting State for which a contract of liability mutual aid is concluded,“insurance sticker” in the same paragraph shall be read as “mutual aid sticker.”
3. The provisions of paragraph 2 and paragraph 3, Article 9-3 shall be applied mutatis
mutandis with respect to the mutual aid sticker.
(Exceptions to application)
Article 10. The provisions of Article 5 and of Article 7 to the preceding Article shall not beapplied to automobiles operated by the State or other persons as provided in the Cabinet
Orders for business or use as provided in the Cabinet Orders and automobiles operated
solely in places other than roads (meaning as defined in the Road Act (Act No. 180, 1952)

7

AUTOMOBILE LIABILITY SECURITY ACT

and motor roads and other places for public traffic as defined in the Road Transportation
Act (Act No. 183, 1951); the same shall be applied hereinafter).
(Insurance/mutual aid exempt sticker)
Article 10-2. The Minister of Land, Infrastructure, Transport and Tourism shall, as provided
in Ordinance of Ministry of Land, Infrastructure, Transport and Tourism, issue an
insurance/mutual aid exempt sticker to the owner of a light automobile which is not
subject to inspection or a motorcycle to which the provision of the preceding Article shallbe applied (excluding those which are provided in the Cabinet Order and operated solely
in places other than roads).
2. The effective period of the insurance/mutual aid exempt sticker shall be provided in the
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
3. A light automobile which is not subject to inspection and a motorcycle as stipulated inparagraph 1 shall not be operated unless an insurance/mutual aid exempt sticker isdisplayed as provided in the Ordinance of Ministry of Land, Infrastructure, Transport andTourism.
4. The provisions of paragraph 4 and paragraph 5, Article 9-2 and paragraph 2 and paragraph
3, Article 9-3 shall be applied mutatis mutandis to insurance/mutual aid exempt sticker.
Section 2. Automobile Liability Insurance Contract and Automobile Liability Mutual Aid
Contract(Liability insurance contract and liability mutual aid contract)
Article 11. The liability insurance contract shall become effective through an agreement
whereby the insurance company agrees to indemnify the owner for damage and the driverfor damage if he/she assumed the liability to the victim in the case where the ownerbecomes liable pursuant to the provision of Article 3, and whereby the policyholder agrees
to pay an premium to the insurance company.
2. The liability mutual aid contract shall become effective through an agreement whereby thecooperative agrees to indemnify the owner for damage and the driver for damage if he/she
assumed the liability for compensation to the victim in the case where the owner becomes
liable to compensate for damage pursuant to the provision of Article 3, and whereby thepolicyholder of mutual aid agrees to pay a mutual aid premium to the cooperative.
Article 12. A liability insurance contract shall be concluded on each automobile separately.
(Limit of insurance)
Article 13. The limit of insurance shall be provided in the Cabinet Order.
2. In the case where the Cabinet Order is enacted or amended pursuant to the provision of
the preceding paragraph, measures necessary for changing the current limit of insurance
on automobiles at the time of enforcement of the Cabinet Order to the limit of insurance
as provided in the amended Cabinet Order and interim measures incidental to theenactment or amendment may be provided in the Cabinet Order.

8

AUTOMOBILE LIABILITY SECURITY ACT(Exemption)
Article 14. The insurance company shall, except for the cases as stipulated in Article 82-3, be
exempted from liability for indemnification only for damage caused by malicious intent of
the policyholder or the insured.
(Claim for insurance)
Article 15. The insured may make a claim for payment against the insurance company to theextent of the amount of compensation for damage paid by him/her to the victim.
(Claim for the amount of compensation for damage against the insurance company)
Article 16. If the owner has become liable to compensate for damage pursuant to theprovision of Article 3, the victim may, as provided in the Cabinet Order, make a claim forthe amount of compensation for damage against the insurance company to the extent of
the limit of insurance.
2. In the case where the insured has compensated the victim for damage, if the insurancecompany has indemnified the insured for such damage, such insurance company shall, tothe extent of the amount indemnified by it, be exempted from its obligation to makepayment under the preceding paragraph.
3. If the insurance company has paid the victim the amount of compensation for damage
pursuant to the provision of paragraph 1, such insurance company shall be deemed to haveindemnified the insured for his/her damage under the liability insurance contract, except
for the case where the damage was caused by malicious intent of the policyholder or the
insured.
4. In the case where the damage was caused by the malicious intent of the policyholder orthe insured, if the insurance company has paid the victim the amount of compensation fordamage pursuant to the provision of paragraph 1, such insurance company may make aclaim for reparation for the amount of damage paid by it to the Government.
(Limit of insurance claim related to losses, etc. due to loss of earning)
Article 16-2. Out of the insurance claim to be paid by the insurance company to the insuredor the amount of compensation for damage to be paid by it to the victim pursuant to theprovision of paragraph 1, the preceding Article (hereinafter referred to as “insurance
claim, etc.” excluding paragraph 1, Article 28-4), the part related to losses due to thevictim’s inability to work by reason of medical care or any other losses as provided in the
Cabinet Order shall be limited to the amount as provided in the Cabinet Order.
(Standards for payment)
Article 16-3. If the insurance company pays an insurance claim, etc., it shall make suchpayment in accordance with the standards for payment as provided by the Minister ofLand, Infrastructure, Transport and Tourism and the Prime Minister for each separate
death, permanent disabilities and injury (hereinafter referred to as “standards forpayment”).
2. In the case where the Minister of Land, Infrastructure, Transport and Tourism and thePrime Minister provide the standards for payment pursuant to the provisions of the9AUTOMOBILE LIABILITY SECURITY ACT

preceding paragraph, they shall provide for such standards for payment by taking into
consideration the need to ensure fair and prompt payment. The same shall be applied in
the case of making changes to the standards for payment.
(Issuance of written statement)
Article 16-4. If the insurance company has received a claim for payment, etc., it shall issue
without delay to the insured or the victim making such claim a written statement that
describes a summary of the standards for payment and any other matters as provided in
the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet
Office, as provided in the Ordinance of Ministry of Land, Infrastructure, Transport andTourism and Cabinet Office.
2. If the insurance company pays insurance claim, etc., it shall issue without delay to theinsured or the victim making the claim pursuant to the provision of preceding paragraph awritten statement that describes the amount of the insurance claim, etc. paid, the grade of
the permanent disabilities comes to fall, the reasons for determining such grade comes tofall and all other material facts concerning the insurance claim payment, etc. as provided
in the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet
Office, as provided in the Ordinance of Ministry of Land, Infrastructure, Transport andTourism and Cabinet Office.
3. If the insurance company determines that it will not pay an insurance claim, etc. because it
has evidence of a matter pursuant to the provison of Article 3 or for other reasons, it shallissue without delay to the insured or the victim making the claim pursuant to the provisionof paragraph 1 a written statement describing the reasons for its decision of nonpayment,
as provided in the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism
and Cabinet Office.
4. As an alternative to issuance of a written statement pursuant to the provisions of thepreceding three paragraphs, as provided in the Cabinet Order, the insurance company may
provide, subject to the acceptance of the insured or the victim, the items that should be
described in said written statement by means utilizing an electronic information
processing system or other means utilizing information and communications technology
as provided in the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism
and Cabinet Office. In such cases, the insurance company shall be considered to haveissued the required written statement.
(Explanation, etc. by written statement)
Article 16-5. After having issued a written statement pursuant to the provision of paragraph 2
or paragraph 3, the preceding Article, if the insurance company is requested by the insuredor the victim to give an explanation by written statement, as provided in the Ordinance ofMinistry of Land, Infrastructure, Transport and Tourism and Cabinet Office, regarding all
material facts (excluding matters as provided in the Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism and Cabinet Office in paragraph 2, the same
Article) concerning payment of an insurance claim, etc. as provided in the Ordinance ofMinistry of Land, Infrastructure, Transport and Tourism and Cabinet Office, or regarding10

AUTOMOBILE LIABILITY SECURITY ACT

2.

3.

4.

5.

the details of the reason as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office for its decision of nonpayment as stipulated inparagraph 3, the same Article, the insurance company must explain the matters requested
by written statement to the person who requested the explanation, as provided in the
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office,except in the cases as stipulated in the first sentence of the following paragraph. In thecase where the insurance company has the consent of the person who requested the
explanation, however, the insurance company may give an explanation by means otherthan a written statement.
The insurance company shall be able not to give an explanation concerning all or part ofthe matters requested for explanation if there is a fear to unduly harm the rights andbenefits of a third party, or if the insurance company has other due reasons, in the casewhere the insurance company has received a request for an explanation pursuant to theprovision of the preceding paragraph. In this case, the insurance company shall issue awritten statement, describing that it will not give an explanation and its reasons, to theparty that requested the explanation.
Issuance of a written statement pursuant to the provision of preceding paragraph or an
explanation pursuant to the provision of paragraph 1 (referred to in the following
paragraph as “explanation, etc.”) shall be made within 30 days from the date that theinsurance company is requested to give an explanation pursuant to the provision ofparagraph 1.
If the insurance company is unable to give an explanation, etc. within the period as
stipulated in the preceding paragraph because of clerical processing difficulties or forother due reasons, it shall, within the period as stipulated in the preceding paragraph,
notify the party that requested the explanation pursuant to the provision of paragraph 1 by
written statement of reason why it is unable to give an explanation, etc. within the period
as stipulated in the preceding paragraph and the due date by which the it shall give an
explanation, etc.
As an alternative to an explanation by written statement pursuant to the provision ofparagraph 1, issuance of a written statement pursuant to the provision of paragraph 2 ornotification by written statement pursuant to the provision of the preceding paragraph(hereinafter referred to as “explanation, etc. by written statement”), as provided in the
Cabinet Order, the insurance company may, with the consent of the insured or the victim,
provide the items that should be described in said written statement by means utilizing anelectronic information processing system or other means utilizing information andcommunications technology, as provided in Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office. In such cases, the insurance company shall bedeemed to have issued an explanation, etc. by written statement.

(Filing for payment, etc.)
Article 16-6. With regard to deaths or other damages provided in the Ordinance of Minstry ofLand, Infrastructure, Transport and Tourism as matters of special importance to ensure

11

AUTOMOBILE LIABILITY SECURITY ACTproper insurance claim payment etc., the insurance company shall file with the Minister ofLand, Infrastructure, Transport and Tourism without delay if it pays an insurance claim,etc. or if it issues a written statement pursuant to the provision of paragraph 3, Article
16-4, as provided in the Ordinance of Ministry of Land, Infrastructure, Transport andTourism.
(Reporting to the Minister of Land, Infrastructure, Transport and Tourism)
Article 16-7. If facts applicable to any of the following matters exist concerning insurance
claim payment, etc. by the insurance company or the procedures related to payment, theinsured or the victim may report those facts to the Minister of Land, Infrastructure,
Transport and Tourism:(1) in the case the insurance company has not paid an insurance claim, etc. in accordancewith the standards for payment;(2) in the case the insurance company has not issued a written statement pursuant to theprovision of paragraph 1 through paragraph 3, Article 16-4; or(3) in the case the insurance company has not given an explanation pursuant to theprovision of paragraph 1, Article 16-5 or has not issued a written statement pursuant
to the provision of paragraph 2, Article 16-5, or has not provided notification
pursuant to the provision of paragraph 4, Article 16-5.
(Instructions, etc.)
Article 16-8. In the case where the Minister of Land, Infrastructure, Transport and Tourism
receives a filing pursuant to the provision of Article 16-6 or a report pursuant to theprovision of the preceding Article or in other situations, if the Minister determines that thepayment or procedures related to insurance claim, etc. by the insurance company comeunder any of paragraphs of the same Articles, the Minister shall issue instructions to theinsurance company to make payment in accordance with the standards for payment, issue
a written statement pursuant to the provision of paragraphs 1 through 3, Article 16-4 or an
explanation pursuant to the provision of paragraph 1, Article 16-5, or issue a written
statement pursuant to the provision of paragraph 2, Article 16-5 or a notification pursuant
to the provision of paragraph 4, Article 16-5.
2. The Minister of Land, Infrastructure, Transport and Tourism shall notify the Prime
Minister without delay if the Minister has given instructions as stipulated in the preceding
paragraph.
3. If the insurance company has received instructions as stipulated in paragraph 1 and has
not acted according to those instructions without due reasons, the Minister of Land,
Infrastructure, Transport and Tourism may announce this information publicly.
4. After the insurance company has received instructions as stipulated in paragraph 1 and theMinister of Land, Infrastructure, Transport and Tourism has announced publicly as
stipulated in the preceding paragraph that the insurance company has not followed those
instructions, if the insurance company shall not take measures to follow those instructions
without due reasons, the Minister of Land, Infrastructure, Transport and Tourism may
issue an order to the insurance company to take measures to follow those instructions.

12

AUTOMOBILE LIABILITY SECURITY ACT

5. The Minister of Land, Infrastructure, Transport and Tourism shall obtain the consent of
the Prime Minister in advance if the Minister decides to make a public announcement as
stipulated in paragraph 3 or issue an ordinance as stipulated in the preceding paragraph.
(The period of payment of compensation for damage pursuant to the provision of paragraph 1,
Article 16)
Article 16-9. After the claims are made for payment of compensation for damage pursuant
to the provision of paragraph 1, Article 16, until the period necessary to confirm theaccident caused by operation of an automobile related to said claims and the amount ofcompensation for damage lapses, the insurance company shall not be liable for the delayof the payment.
2. In the case where the insurance company makes necessary investigation to confirm thematters stipulated in the preceding paragraph, if the victim prevents said investigation
without due reasons, or does not respond to it, the insurance company shall not be liable
for the delay of the payment of the compensation for damage caused by those acts.
(Provisional payment to the victim)
Article 17. If the owner has caused death of or bodily injury to any other person by operationof an automobile covered by the liability insurance contract, the victim may, as provided
in the Cabinet Order, claim payment against the insurance company of the amountprovided in the Cabinet Order as a provisional payment of the amount of compensation
for damage to be paid pursuant to the provision of paragraph 1, Article 16.
2. If the insurance company has received a claim under the preceding paragraph, suchinsurance company shall pay the amount claimed to the victim without delay.
3. If the amount of the provisional payment under paragraph 1 exceeded the amount ofcompensation for damage to be paid, the insurance company may make a claim for refundof the amount of such excess.
4. In the case where the owner is not liable to compensate for any damage, if the insurancecompany has paid a provisional payment under paragraph 1, such insurance company may
ask the Government to repair for the amount paid provisionally.
(Prohibition of attachment)
Article 18. No right of claim pursuant to the provision of paragraph 1, Article 16 andparagraph 1, the preceding Article shall be attached.
(Prescription)
Article 19. The right of claim pursuant to the provision of paragraph 1, Article 16 andparagraph 1, Article 17 shall be extinct due to prescription after the lapse of three years.
(Material matters concerning risks)
Article 20. In so far as the liability insurance contract is concerned, the material matters as
stipulated in Article 4 of the Insurance Act shall be as follows:(1) the automobile registration number or the vehicle number pursuant to the provisionsof the Road Transport Vehicle Act, the identification plate number as stipulated inparagraph 3, Article 446 of the Local Tax Act (Act No. 226 of 1950) (including the13

AUTOMOBILE LIABILITY SECURITY ACTcase where the provisions shall be applied mutatis mutandis in paragraph 2, Article 1of the same Act) or the registration number pursuant to the provisions of theConvention on Road Traffic (in case where there is no such number, the chassis
number); and(2) category of automobile as provided in the Cabinet Order.
(Cancellation, etc. of the liability insurance contract)
Article 20-2. The parties to the liability insurance contract may cancel the liability insurance
contract only in the cases:(1) where the automobile has come to fall under any of the automobiles as stipulated in
Article 10;(2) where the case falls pursuant to the provisions of paragraph 1, Article 28 of the
Insurance Act;(3) where another liability insurance contract or liability mutual aid contract has beenconcluded on the automobile , and their expiration date of the insurance period or themutual aid period is same as or later than that of the liability insurance contract
concerned; or(4) where as other cases provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism.
2. The parties to the liability insurance contract shall neither cancel the contract by mutual
agreement nor attach any condition subsequent to the contract.
(Effect of cancellation of the contract for reason of breach of the duty of disclosure)
Article 21. If the insurance company has canceled a liability insurance contract pursuant to
the provisions of paragraph 1, Article 28 of the Insurance Act, such cancellation shallbecome effective after the lapse of seven days counting from the date on which thepolicyholder receives the notice of cancellation.
2. Notwithstanding the provisions of item (1), paragraph 2, Article 31 of the Insurance Act,in the case where an insurance accident (meaning any insurance accident as stipulated inparagraph 1, Article 5 of the same Act; the same shall be applied in the paragraph 3, thefollowing Article) has arisen before the cancellation pursuant to the preceding paragraphbecomes effective, the insurance company shall be liable to compensate for damage. In
this case, if the insurance company has compensated for damage, such insurance company
may claim against the policyholder to pay back the amount compensated by it.
(Change of contract due to increase or decrease of risks)
Article 22. If any risk increases or decreases during the insurance period, the liability
insurance contract shall be deemed to have been changed to a contract which covers new
risks.
2. If the policyholder or the insured is aware of an increase of risks during the insurance
period, he/she shall notify thereof to the insurance company without delay.
3. In the case where an insurance accident has arisen after increase of risks during theinsurance period and the insurance company has compensated for damage, and if the14

AUTOMOBILE LIABILITY SECURITY ACT

policyholder or the insured failed to notify under the preceding paragraph, the insurancecompany may claim against the policyholder to pay back the amount compensated by it.
4. In the case of paragraph 1, if the risk increases, the insurance company may claim to pay
the premium for the amount corresponding to increase from the policyholder as provided
in the Cabinet Order.
5．In the case of paragraph 1, if the risk decreases, the policyholder may claim against theinsurance company to refund the premium for the amount corresponding to the decreaseas provided in the Cabinet Order.
(Application of the Insurance Act)
Article 23. Unless otherwise provided in this Act, the provisions of Chapter 1, 2 (except for
Section 5) and 5 of the Insurance Act shall be applied to the liability insurance contract.
(Reports and on-the-spot inspections)
Article 23-2. To the extent of necessity to implement the provisions of Article 11 throughArticle 23, the Minister of Land, Infrastructure, Transport and Tourism may orderinsurance companies to provide reports concerning the liability insurance business, or
instruct officials to enter the insurance companies’ sales offices, business offices or otherpremises and inspect the conditions of the liability insurance business or examine theirbooks, documents and other things, or to question related persons, as provided in the
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
2. The officials who conduct on-the-spot inspections or question as stipulated in theprovision of the preceding paragraph shall carry proof of their identities, and shall show
this identification if they are requested by the related persons.
3. The authority to conduct on-the-spot inspections or question pursuant to paragraph 1 shallnot be interpreted as authorizing any investigation of criminal activity.
(Application mutatis mutandis of the provisions, etc. concerning the liability insurance
contract)
Article 23-3. The provisions of Article 12 through the preceding Article shall be appliedmutatis mutandis to the liability mutual aid contract. In such case, in these provisions(except for item (3), paragraph 1, Article 20-2), the words “liability insurance contract”
shall be read as “liability mutual aid contract,” “liability insurance” as “liability mutualaid,” “limit of insurance claim” as “limit of mutual aid claim”, “insurance company” as“cooperative,” “policyholder” as “policyholder of mutual aid,” “insured” as “insured ofmutual aid,” “insurance claim” as “mutual aid claim,” “insurance claim, etc.” as “mutual
aid claim, etc.,” “insurance period” as “mutual aid period,” “premium” as “mutual aid
premium”; in Article 16-2, “paragraph 1, the preceding Article” as “paragraph 1, Article
16 which shall be applied mutatis mutandis in paragraph 1, Article 23-3”; “excluding
paragraph 1, Article 28-4, referred to below” as “referred to below”; in paragraph 1,
Article 16-5, “paragraph 2 or paragraph 3, the preceding Article” as “paragraph 2 orparagraph 3, Article 16-4 which shall be applied mutatis mutandis in paragraph 1, Article23-3”; in Article 16-6, “paragraph 3, Article 16-4” as “paragraph 3, Article 16-4 whichshall be applied mutatis mutandis in paragraph 1, Article 23-3”; in item (2) of Article 16-7

15

AUTOMOBILE LIABILITY SECURITY ACT

and in paragraph 1, Article 16-8, “paragraphs 1 through 3, Article 16-4” as “paragraphs
1 through 3, Article 16-4 which shall be applied mutatis mutandis in paragraph 1, Article23-3”; in item (3) of Article 16-7 and in paragraph 1, Article 16-8, “paragraph 1, Article16-5” as “paragraph 1, Article 16-5 which shall be applied mutatis mutandis in paragraph
1, Article 23-3”; in paragraph 1, Article 16-8, “Article 16-6” as “Article 16-6 which shallbe applied mutatis mutandis in paragraph 1, Article 23-3,” “the preceding Article” as“Article 16-7 which shall be applied mutatis mutandis in paragraph 1, Article 23-3”; inparagraph 2 and paragraph 5, Article 16-8, “the Prime Minister” as “the administrative
agency (which shall mean the administrative agency as stipulated in paragraph 1, Article
27 in the case where services are provided by agricultural cooperatives, etc., theadministrative agency as stipulated in paragraph 1, Article 27 which shall be appliedmutatis mutandis in an alternative reading of paragraph 1, Article 27-2 in the case whereservices are provided by consumer cooperatives, etc., and the administrative agency as
stipulated in paragraph 1, Article 27 which shall be applied mutatis mutandis in analternative reading of paragraph 2, Article 27-2 in the case where services are provided bycommon facility cooperatives, etc)”; in paragraph 1, Article 17, “paragraph 1, Article 16”
as “paragraph 1, Article 16 which shall be applied mutatis mutandis in paragraph 1,
Article 23-3”; in Article 18, “paragraph 1, Article 16 and paragraph 1, the preceding
Article” and in Article 19, “paragraph 1, Article 16 and paragraph 1, Article 17” as“paragraph 1, Article 16 which shall be applied mutatis mutandis in paragraph 1, Article23-3 and paragraph 1, Article 17”; in item (3), paragraph 1, Article 20-2, “the insurance
period of liability insurance contract” as “the mutual aid period of liability mutual aid
contract.”
2. If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Ministershall provide for or change the standards for payment as stipulated in paragraph 1, Article
16-3 which shall be applied mutatis mutandis in the preceding paragraph and if they enact
or amend the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism andCabinet Office as stipulated in paragraph 1 and paragraph 5, Article 16-5 which shall beapplied mutatis mutandis in the same paragraph and pursuant to Article 16-4 which shallbe applied mutatis mutandis in the preceding paragraph, they shall consult beforehandwith the Minister of Agriculture, Forestry and Fisheries, Minister of Health, Labour andWelfare and the minister having jurisdiction over the business provided as cooperative
member qualifications in articles of association of cooperative societies, etc. (hereafterreferred to as “minister with jurisdiction over the business”).
Section 2-2. Designated Dispute Settlement Organizations(Designation, etc. of designated dispute settlement organizations)
Article 23-5. The Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister may designate as organizations, that submit applications, to engage in disputesettlement activities those general incorporated associations or general incorporated
foundations intending to protect victims through the fair and accurate settlement of16

AUTOMOBILE LIABILITY SECURITY ACT

2.

3.

4.

5.

disputes involving insurance claim payment, etc. or mutual aid claim payment, etc. andare judged to satisfy the criteria as set forth below concerning the activities as stipulated inparagraph 1, the following Article (hereinafter referred to as “dispute settlement
activities.”)(1) That a plan concerning employees, procedures for executing dispute settlement
activities and other matters related to execution of dispute settlement activities areappropriate to ensure accurate execution of dispute settlement activities.
(2) That it possesses a sufficient financial and technical foundation to appropriately
implement its plan concerning the execution of dispute settlement activities in thepreceding item.
(3) That there is no possibility that the composition of officers and employees create
obstructions to the fair execution of dispute settlement activities.
(4) That, in the case where the organization is engaged in activities other than disputesettlement activities; there is no possibility that executing such activities create
obstructions to the fair execution of dispute settlement activities.
(5) That, other than as provided in the preceding items, the organization is capable offairly and accurately executing dispute settlement activities.
If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister
have made a designation pursuant to the provisions of the preceding paragraph(hereinafter referred to as “designation”), they shall publicly disclose the name andaddress of the designated entity (hereinafter referred to as “designated dispute settlement
organization”), the locations of the business offices where it will execute its disputesettlement activities and the date on which it will begin dispute settlement activities.
If a designated dispute settlement organization decides to change its name or address or
the location of an office where it executes its dispute settlement activities, it shall file the
Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to that
effect and the date on which it plans to make the changes no later than two weeks before
the date on which it will make the changes.
If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister
have received the filing pursuant to the provision of the preceding paragraph, they shall
publicly disclose the matters related to the filing.
A designated dispute settlement organization shall display at its offices in a location that iseasy for the general public to see a notice of its status as a designated dispute settlement
organization as provided in the Ordinance of Ministry of Land, Infrastructure, Transport
and Tourism and Cabinet Office.

(Activities)
Article 23-6. A designated dispute settlement organization shall engage in the activities as set
forth in the following items:(1) to execute dispute mediation (hereinafter referred to as “dispute settlement”) basedon an application from the insurance company, the cooperative, the insured, theinsured of mutual aid, or the victim who are parties to a dispute concerning insurance

17

AUTOMOBILE LIABILITY SECURITY ACT

claim payment, etc. or mutual aid claim payment, etc.; and(2) to execute activities that are incidental to the activities as set forth in the precedingitem.
2. The procedures for the application referred to in item (1) of the preceding paragraph shallbe provided in the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism
and Cabinet Office.
(Dispute settlement members)
Article 23-7. A designated dispute settlement organization shall select at least the number ofdispute settlement members as provided in the Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism and Cabinet Office among highly principledpersons who possess intelligence and sound judgment.
2. If a designated dispute settlement organization engages in dispute settlement, it shall havepersons execute the dispute settlement who have been appointed for each case by the headof the designated dispute settlement organization from among the dispute settlement
members selected pursuant to the provision of the preceding paragraph. In such case, thehead of the designated dispute settlement organization shall not appoint any disputesettlement member to the case when the dispute settlement member has an interest withthe parties involved or any circumstances that will prevent fair dispute settlement.
3. One or more of the dispute settlement members who are appointed pursuant to theprovision of the preceding paragraph shall be an attorney-at-Act.
(Selection and dismissal of officers, etc.)
Article 23-8. Selection and dismissal of officers of designated dispute settlement
organizations engaged in dispute settlement activities (including dispute settlement
members; the same shall be applied in the next paragraph and in the next Article,) shallnot be effective unless such adoption and dismissal have received approval from the
Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister.
2. If an officer of a designated dispute settlement organization has violated the disputesettlement activities bylaws approved pursuant to paragraph 1, Article 23-11, or if an
officer has engaged in remarkably inappropriate conduct concerning dispute settlement
activities, or if a designated dispute settlement organization no longer conforms to thecriteria as set forth in item (3) of paragraph 1, Article 23-5 because of the presence of an
officer, the Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister may order the designated dispute settlement organization to dismiss the officer.
(Duty, etc. to protect confidentiality)
Article 23-9. The officers, employees and former officers and employees of a designateddispute settlement organization shall not disclose any confidential information they havelearned in relation to dispute settlement activities, or use such information for theirpersonal gain.
2. Persons who are engaged in dispute settlement activities as officers and employees of adesignated dispute settlement organization shall be regarded as employees engaged in18

AUTOMOBILE LIABILITY SECURITY ACT

public service as provided in Acts and regulations in the case of applying the Penal Code(Act No. 45 of 1907) and other penal provisions.
(Duty of dispute settlement activities)
Article 23-10. If a designated dispute settlement organization has been requested to provide
dispute settlement activities, it shall perform its dispute settlement activities without delay
except the case where it has due reasons.
(Dispute settlement activities bylaws)
Article 23-11. A designated dispute settlement organization shall stipulate bylaws concerning
its dispute settlement activities (hereinafter referred to as “dispute settlement activities
bylaws”) and receive approval from the Minister of Land, Infrastructure, Transport andTourism and the Prime Minister. The same shall be applied if a designated disputesettlement organization intends to change the bylaws.
2. The matters to be provided in the dispute settlement activities bylaws shall be provided in
the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet
Office.
3. If the dispute settlement activities bylaws approved in paragraph 1 are determined to beunsuitable for the fair and accurate execution of dispute settlement activities, the Ministerof Land, Infrastructure, Transport and Tourism and the Prime Minister shall order that the
dispute settlement activities bylaws to be amended.
(Requests for submission of explanations or materials)
Article 23-12. To the extent of necessity to perform its dispute settlement activities, adesignated dispute settlement organization may request for insurance companies orcooperatives to submit materials or explanations in writing or orally.
2. If an insurance company or a cooperative has received a request pursuant to the provisionof the preceding paragraph, it shall not reject the request unless it has due reasons.
(Non-disclosure of dispute settlement procedures)
Article 23-13. The dispute settlement procedures performed by a designated disputesettlement organization shall not be disclosed publicly. However, a designated disputesettlement organization may allow parties, whom it deems appropriate, to attend theprocedures.
(Business plan, etc.)
Article 23-14. A designated dispute settlement organization shall make a business plan and abudget of each business year regarding its dispute settlement activities as provided in the
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office,and shall have approval from the Minister of Land, Infrastructure, Transport and Tourism
and the Prime Minister before the beginning of the relevant business year (in the casewhere a business year falls under a date of designation, receive such approval without
delay after the designation.) The same shall be applied if a designated dispute settlement
organization intends to change the business plan and annual budget.

19

AUTOMOBILE LIABILITY SECURITY ACT

2. A designated dispute settlement organization shall make a business report and financial
statements of each business year regarding its dispute settlement activities as provided in
the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism and Cabinet
Office, and shall submit these to the Minister of Land, Infrastructure, Transport andTourism and the Prime Minister within three months following the close of the relevantbusiness year.
(Suspension or termination, etc. of activities)
Article 23-15. A designated dispute settlement organization shall not suspend all or part of its
dispute settlement activities, or terminate its dispute settlement activities, without
receiving the permission of the Minister of Land, Infrastructure, Transport and Tourism
and the Prime Minister.
2. If the Minster of Land, Infrastructure and Transport and the Prime Minister havepermitted the termination of all dispute settlement activities pursuant to the provision of
the preceding paragraph, the designation related to that permission shall become invalid.
3. If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister
permit pursuant to paragraph 1, they shall publicly disclose information to that effect.
(Furnishing, etc. of books)
Article 23-16. A designated dispute settlement organization shall furnish books describing
for matters related to dispute settlement activities as provided in the Ordinance ofMinistry of Land, Infrastructure, Transport and Tourism and Cabinet Office, and shallretain these books, as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office.
(Reports and on-the-spot inspections)
Article 23-17. To the extent of necessity to ensure the fair and accurate execution of disputesettlement activities, the Minister of Land, Infrastructure, Transport and Tourism and thePrime Minister may order designated dispute settlement organizations to provide reports
concerning their dispute settlement activities, or instruct official to enter the designateddispute settlement organizations’ offices and inspect the conditions of their disputesettlement activities or examine their books, documents and other things, or to question
related persons, as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office.
2. The provisions of paragraph 2 and paragraph 3, Article 23-2 shall be applied mutatis
mutandis to the on-the-spot inspections or questions pursuant to the provision of thepreceding paragraph.
(Supervisory ordinances)
Article 23-18. If the Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister determine it to be necessary to ensure the fair and accurate execution of disputesettlement activities, they may issue to a designated dispute settlement organization any
ordinances necessary for supervision concerning its dispute settlement activities.

20

AUTOMOBILE LIABILITY SECURITY ACT(Cancellation, etc. of designation)
Article 23-19. If any of the following items are applicable to a designated dispute settlement
organization, the Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister may cancel the designation or issue an order to suspend all or part of theorganization’s dispute settlement activities for a prescribed period of time:(1) in the case the organization is determined to no longer conform to the criteria as set
forth in each item in paragraph 1, Article 23-5;(2) in the case of a violation of the provisions in paragraph 3 or paragraph 5, Article 23-5,
Article 23-7, paragraph 1 of Article 23-8, Article 23-10, Article 23-13, Article 23-14
or paragraph 1, Article 23-15;(3) in the case of a violation of an ordinance pursuant to the provision of paragraph 2,
Article 23-8, paragraph 3, Article 23-11 or the preceding Article;(4) in the case the organization has executed its dispute settlement activities in a mannerthat is not in accordance with the approved dispute settlement activities bylaws inparagraph 1, Article 23-11;(5) in the case the designated dispute settlement organization or its officers have engaged
in remarkably inappropriate conduct concerning dispute settlement activities; or(6) in the case the organization has received its designation by inappropriate means.
2. If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Ministercancel the designation or suspend all or part of the organization’s dispute settlement
activities pursuant to the provision of the preceding paragraph, they shall publicly disclosethe matters related to the order.
(Provision of information, etc. to a designated dispute settlement organization)
Article 23-20. The Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister shall provide to designated dispute settlement organizations all information andmaterials necessary for the execution of dispute settlement activities.
(Delegation to the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism andCabinet Office Ordinance)
Article 23-21. In addition to those stipulated in this section, matters necessary concerning
designated dispute settlement organizations and dispute settlement activities shall be
provided in the Ordinance of Ministry of Land, Infrastructure, Transport and Tourism andCabinet Office.
Section 3. Automobile Liability Insurance Business and Automobile Liability Mutual Aid
Business(Obligation to conclude the liability insurance contract and the liability mutual aid contract)
Article 24. Except for the case where there is any due reason as provided in the Cabinet
Order, the insurance company shall not refuse to conclude the liability insurance contract.
2. Except for the case as set forth in each of the following items and the case where there isany due reason as provided in the Cabinet Order, the cooperative shall not refuse toconclude the liability mutual aid contract:21

AUTOMOBILE LIABILITY SECURITY ACT(1) where the cooperative comes to violate the provisions of the proviso of paragraph 17,
Article 10 of the Agricultural Cooperative Association Act;(2) where the cooperative comes to violate the provisions of paragraph 3, Article 12 of
the Consumer Livelihood Cooperative Association Act; or(3) where the cooperative comes to violate the provisions of the proviso of paragraph 3,
Article 9-2 which shall be applied in the alternative reading of paragraph 9, the same
Article of the Act on the Cooperative Associations of Small and Medium Enterprises(including the case where the provisions shall be applied mutatis mutandis in thealternative reading of paragraph 5, Article 9-9).
(Standards for the premium rates and contribution rates)
Article 25. Premium rates of the liability insurance and the contribution rates of the liability
mutual aid shall be as lower as possible within the range of compensating reasonable cost
under the efficient management.
(Examination, etc. of premium rates)
Article 26. In the case where an application for a license under paragraph 1, Article 3 orparagraph 1, Article 185 of the Insurance Business Act has been filed, if the Prime
Minister conducts its examination as to whether such application conforms to thestandards as set forth in item (4), paragraph 1, Article 5 of the same Act (including thecase where the provisions shall be applied mutatis mutandis in paragraph 5, Article 187 of
the same Act; hereinafter the same shall be applied in this paragraph), in respect of theliability insurance, the Prime Minister shall, in addition to the standards as set forth initem (4), paragraph 1, Article 5 of the same Act, examine as to whether such application
conforms to the provisions of the preceding Article.
2. The matters related to the liability insurance shall not be included in the matters asprovided in the Cabinet Office Ordinance under in paragraph 1, Article 123 of the
Insurance Business Act (including the case where the provisions shall be applied mutatis
mutandis in Article 207 of the same Act).
3. In the case where an application for approval under paragraph 1, Article 123 of the
Insurance Business Act has been made (including the case where the provisions shall beapplied mutatis mutandis in Article 207 of the same Act), if the Prime Minister conducts
its examination under Article 124 of the same Act (including the case where theprovisions shall applied mutatis mutandis in Article 207 of the same Act; hereinafter thesame shall be applied in this paragraph), in respect of matters related to the premium ratesof the liability insurance, the Prime Minister shall, in addition to the standards as provided
in item (2), Article 124 of the same Act, examine as to whether such application conforms
to the provisions of the preceding Article.
Article 26-2. With respect to the liability insurance, the provisions of Article 10-2, Article
10-3, paragraph 2 and the second sentence of paragraph 3, Article 10-4, paragraph 4,
Article 10-5 and paragraph 1 through paragraph 4, Article 10-6 of the Act concerning
Non-life Insurance Rating Organization (Act No.. 193, 1948) shall not be applied.

22

AUTOMOBILE LIABILITY SECURITY ACT

2. With respect to application of the provisions of paragraph 1 and the first sentence ofparagraph 3, Article 10-4 of the Act concerning Non-life Insurance Rating Organization in
respect of the liability insurance, in paragraph 1, the same Article, the words “premium
rates within a fixed range centering on the standard full rates related to the filing(hereinafter referred to as “range rates” in this Article)” shall be read as “standard full
rates”; in the first sentence of paragraph 3, the same Article, “range rates” as “standard
full rates” and “to have been approved or to have filed pursuant to the provision of
Paragraph 2, the same article” as “to have been approved.”
3. With respect to application of the provisions of paragraph 1 through paragraph 3, Article
10-5 of the Act concerning Non-life Insurance Rating Organization in respect of theliability insurance, in paragraph 1, the same Article, the words “upon lapse of the period
as stipulated in paragraph 1 and 2, Article 10-2 on the standard full rates, and,furthermore, upon recognition of the standard full rates conforming to the provision of
Article 8” shall be read as “upon recognition of the said standard full rates conforming to
the provision of Article 8, and Article 25 of the Automobile Liability Security Act (ActNo. 97, 1955)”; in paragraph 2, the same Article, “hearing of opinions and examination ofconformability pursuant to the provisions of paragraph 1 or paragraph 2, Article 10-3” as“examination of conformability to the provisions of Article 8, and Article 25 of theAutomobile Liability Security Act”; in paragraph 3, the same Article, “upon recognition
that the standard full rates do not conform to the provision of Article 8” as “uponrecognition that the standard full rates do not conform to the provision of Article 8, or
Article 25 of the Automobile Liability Security Act.”
Article 26-3. If the Prime Minister considers that the premium of the liability insurance
exceeds the reasonable cost under the efficient management, the Prime Minister may orderthe insurance company or the non-life insurance rating organization as stipulated in item
(3), paragraph 1, Article 2 of the Act concerning Non-life Insurance Rating Organization
to change the premium rates of the liability insurance or the standard full rates (referred toas “standard full rates” in Article 28 and Article 29-2) as set forth in item (6), the same
paragraph.
(Examination, etc. of the mutual aid rules related to the business of liability mutual aid
performed by the agricultural cooperatives, etc.)
Article 27. In the case where the administrative agency (meaning the administrative agency
as stipulated in paragraph 1, Article 98 of the Agricultural Cooperative Association Act,
including Prefectural Governors who are stipulated to do service belonging to authoritiesof the Minister of Agriculture, Forestry and Fisheries pursuant to the provision ofparagraph 11, the same Article) intends to give its approval of the mutual aid rules inrespect of the business of the liability mutual aid pursuant to the provision of paragraph 1,
Article 11-7 of the same Act to the agricultural cooperatives, etc. which intends to conduct
the business of the liability mutual aid (including the business of the re-mutual aid of theliability mutual aid assumed by a contract of the liability mutual aid (hereinafter referred
to as “re-mutual aid”) or the business of the retrocession-mutual aid of the re-mutual aid

23

AUTOMOBILE LIABILITY SECURITY ACT

assumed by a contract of the re-mutual aid (hereinafter referred to as “retrocession-mutualaid”; hereinafter the same shall be applied)), such agency shall examine as to whether thesaid agricultural cooperatives, etc. conforms to the standards as set forth in item (1) anditem (2), and as to whether those matters related to the method of implementation of thebusiness, the mutual aid contract or the contribution out of those matters as described in
the said mutual aid rules conform to the standards as set forth in item (3) of the preceding
paragraph.
(1) That the said agricultural cooperatives, etc. owns the property basis sufficient tosoundly and efficiently carry out the business of the liability mutual aid, and an
estimated balance of earnings and expenses related to the business of the liability
mutual aid is good.
(2) That the said agricultural cooperatives, etc., in view of its personnel structure etc., ispossessed of knowledge and experience to perform the business of the liability
mutual aid in an accurate, fair and effective manner, and has sufficient social
credibility.
(3) That matters as described in the liability mutual aid rules conform to the following
standards:(a) That there is no possibility that the content of the mutual aid contract is lacking
in protection of the policyholder of mutual aid, the insured of mutual aid, theperson who should receive the amount of mutual aid claim and other related
persons (hereinafter referred to as “policyholder of mutual aid, etc.” in this item.)(b) That, as for the content of the mutual aid contract, such content shall not be
unfairly discriminatory against any specified person.
(c) That there is no possibility that the content of the liability mutual aid contract
promotes or induces any act impairing the public order or the good morals.
(d) That rights and obligations of the policyholder of mutual aid, etc. and thecontents of the liability mutual aid contract are clearly and plainly provided tothe policyholder of mutual aid, etc.
(e) That the contribution conforms to the provision of Article 25 and is reasonable
and appropriate, and also shall not be unfairly discriminatory against any
specified person.
(f) Any other standards as provided in the Ministry of Agriculture, Forestry and
Fisheries Ordinance.
2. In the case where the administrative agency as stipulated in the preceding paragraph gives
its approval on any change of the liability mutual aid rules in respect of the business of theliability mutual aid pursuant to the provisions of paragraph 3, Article 11-7 of theAgricultural Cooperative Association Act to any agricultural cooperatives, etc. which
performs the business of the liability mutual aid, such agency shall examine whether the
implementation method of the business and the matters related to the liability mutual aid
contract or the contribution out of those matters described in the liability mutual aid rules
conform to the standards as set forth in paragraph 3, the preceding paragraph.
3. If the administrative agency as stipulated in paragraph 1 deems that the contribution

24

AUTOMOBILE LIABILITY SECURITY ACT

exceeds the reasonable cost under the efficient management, such agency may orderchange of the contribution rates to the agricultural cooperatives, etc.
(Examination, etc. of the mutual aid business rules related to the business of liability mutual
aid to be performed by the consumer cooperatives, etc. and the common facility cooperatives,
etc.)
Article 27-2. The provisions of the preceding Article shall be applied mutatis mutandis to thecase where the consumer cooperatives, etc. performs the business of the liability mutual
aid. In such case, in the same Article, “administrative agency (meaning the administrative
agency as stipulated in paragraph 1, Article 98 of the Agricultural Cooperative Association
Act, and including Prefectural Governors who are stipulated to do service belonging toauthorities of the Minister of Agriculture, Forestry and Fisheries pursuant to the provisionof paragraph 11, the same Article)” shall be read as “administrative agency (meaning theadministrative agency as stipulated in Article 97 of the Consumer Livelihood Cooperative
Association Act, and including Prefectural Governors who are stipulated to do service
belonging to authorities of the Minister of Health, Labor and Welfare pursuant to theprovision of paragraph 2, Article 97-2 of the same Act),” “agriculture cooperative society,etc.” as “consumer cooperatives, etc.,” “approval of the liability mutual aid rules inrespect of the business of the liability mutual aid pursuant to the provision of paragraph 1,
Article 11-7 of the same Act” as “approval of establishment of the rules in respect of thebusiness of the liability mutual aid pursuant to the provisions of paragraph 5, Article 40 of
the same Act (hereinafter referred to as “liability mutual aid business rules”),” “liability
mutual aid rules” as “liability mutual aid business rules,” “Ministry of Agriculture,
Forestry and Fisheries Ordinance” as “Ministry of Health, Labor and Welfare Ordinance,”“acknowledgment of change in the liability mutual aid rules in respect of the business of
the liability mutual aid pursuant to the provisions of paragraph 3, Article 11-7 of theAgricultural Cooperative Association Act” as “approval of change in the liability mutual
aid business rules in respect of the business of the liability mutual aid pursuant to theprovisions of paragraph 5, Article 40 of the Consumer Livelihood Cooperative
Association Act.”
2. The provisions of the preceding Article shall be applied mutatis mutandis to the casewhere the common facility cooperatives, etc. do business of the liability mutual aid. Insuch case, in the same Article, “administrative agency (meaning the administrative agency
as stipulated in paragraph 1, Article 98 of the Agricultural Cooperative Association Act,and including Prefectural Governors who are stipulated to do service belonging toauthorities of the Minister of Agriculture, Forestry and Fisheries pursuant to the provisionof paragraph 11, the same Article)” shall be read as “administrative agency (meaning theadministrative agency as stipulated in paragraph 1, Article 111 of the Act on the
Cooperative Associations of Small and Medium Enterprises. and including the Prefectural
Governors who are stipulated to do service belonging to authorities of the competent
Minister pursuant to the provision of paragraph 3, the same article and the head of thelocal bureaus and branches who are entrusted a part of authorities of the competent25

AUTOMOBILE LIABILITY SECURITY ACTMinister pursuant to the provisions of paragraph 4, the same Article),” “agricultural
cooperatives, etc.” as “common facility cooperatives, etc.,” “acknowledgment of themutual aid rules in respect of the business of the liability mutual aid pursuant to theprovision of paragraph 1, Article 11-7 of the same Act” as “approval of the mutual aid
rules in respect of the business of the liability mutual aid pursuant to provision ofparagraph 1, Article 9-6-2 of the same Act (including the case where the provisions shallbe applied mutatis mutandis in paragraph 5, Article 9-9 of the same Act),” “Ministry ofAgriculture, Forestry and Fisheries Ordinance” as “Ministerial Ordinance as provided by
the Minister with jurisdiction over the business,” “acknowledgment of change in theliability mutual aid rules in respect of the business of the liability mutual aid pursuant to
the provision of paragraph 3, Article 11-7 of the Agricultural Cooperative Association
Act” as “approval of change in the liability mutual aid rules in respect of the business of
the liability mutual aid pursuant to the provisions of paragraph 4, Article 9-6-2 of the Act
on Cooperatives of Small and Medium Enterprise, etc. (including the case where theprovisions shall be applied mutatis mutandis in paragraph 5, Article 9-9 of the same Act).”(Consent)
Article 28. In the case where the Prime Minister receives an application for license underparagraph 1, Article 3 or paragraph 1, Article 185 of the Insurance Business Act (inrespect of the liability insurance, only in the case where it is necessary to examine as towhether such application conforms to the standards as set forth in item (3) and item (4),paragraph 1, Article 5 of the same Act (including the case where the provisions shall beapplied mutatis mutandis in paragraph 5, Article 187 of the same Act) and the provisionsof Article 25), the Prime Minister shall, if the Prime Minister intends to give the said
license, obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism
in advance.
2. With respect to the part concerning the liability insurance out of the matters provided in
documents as set forth in item (3) or item (4), paragraph 2, Article 4 or item (3) or item (4),paragraph 3, Article 187 of the Insurance Business Act, if the Prime Minister intends togive approval pursuant to the provision of paragraph 1, Article 123 of the same Act(including the case where the provision shall be applied mutatis mutandis in Article 207 of
the same Act) or issues an ordinance pursuant to the provision of Article 131 or Article
203 of the same Act, the Prime Minister shall obtain the consent of the Minister of Land,
Infrastructure, Transport and Tourism in advance.
3. With respect to the standard full rates of the liability insurance, in the case where a filingpursuant to the provisions of paragraph 1, Article 9-3 of the Act concerning Non-life
Insurance Rating Organization has been made, if the Prime Minister intends to shorten the
period of lapse of ninety days as stipulated in paragraph 1, Article 10-4 of the same Act
pursuant to the provisions of paragraph 1, Article 10-5 of the same Act which is read as
pursuant to the provisions of paragraph 3, Article 26-2, to a period deemed appropriate,
the Prime Minister shall obtain the consent of the Minister of Land, Infrastructure,
Transport and Tourism in advance. Also if the Prime Minister determines not to give an

26

AUTOMOBILE LIABILITY SECURITY ACT

ordinance pursuant to the provisions of paragraph 3, Article 10-5 of the same Act, thesame shall be applied.
4. With respect to the premium rates or the standard full rates of the liability insurance, if thePrime Minister intends to give an ordinance for change pursuant to the provisions ofArticle 26-3 or an ordinance pursuant to the provision of paragraph 5, Article 10-6 of the
Act concerning Non-life Insurance Rating Organization, the Prime Minister shall obtainthe consent of the Minister of Land, Infrastructure, Transport and Tourism in advance.
5. In the case where the insurance company violates this Act or any order under this Act or
any disposition thereunder, or violates the Insurance Business Act or the Act concerning
Non-life Insurance Rating Organization or any order thereunder or any disposition
thereunder in respect of the policy conditions or the premium rates of the liability
insurance, if the Prime Minister intends to make any disposition pursuant to the provisionof Article 133 or Article 205 of the Insurance Business Act, the Prime Minister shallobtain the consent of the Minister of Land, Infrastructure, Transport and Tourism inadvance.
(Consent and consultation)
Article 28-2. If the administrative agency as stipulated in paragraph 1, Article 27 intends tomake disposition as set forth in each of the following items with respect to those rules
related to the implementation method of business, the mutual aid contract or thecontribution out of the mutual aid rules in respect of the business of the liability mutual
aid, such agency shall obtain the consents of the Minister of Land, Infrastructure,
Transport and Tourism and the Prime Minister in advance.
(1) Order for change pursuant to the provision of paragraph 3, Article 27;(2) Acknowledgment pursuant to the provisions of paragraph 1 or paragraph 3, Article
11-7 of the Agricultural Cooperative Association Act; or(3) Disposition pursuant to the provision of paragraph 2, Article 94-2 or the provision of
Article 95 of the Agricultural Cooperative Association Act.
2. With respect to those rules related to the implementation method of the business, themutual aid contract or contribution out of the mutual aid rules in respect of the business of
the liability mutual aid, if the administrative agency as stipulated in the preceding
paragraph intends to enact or change the Ordinance of Ministry of Agriculture, Forestry
and Fisheries under paragraph 2, Article 11-7 of the Agricultural Cooperative Association
Act, such agency shall consult with the Minister of Land, Infrastructure, Transport andTourism and the Prime Minister in advance.
3. With respect to those rules related to the implementation method of business, the mutual
aid contract or the contribution out of the mutual aid business bylaws in respect of thebusiness of the liability mutual aid, if the administrative agency as stipulated in paragraph
1, Article 27 which shall be read as and applied mutatis mutandis in paragraph 1, Article27-2 intends to make disposition as set forth in each of the following items, such agency
shall obtain the consents of the Minister of Land, Infrastructure, Transport and Tourism
and the Prime Minister in advance.

27

AUTOMOBILE LIABILITY SECURITY ACT(1) Order for change pursuant to the provision of paragraph 3, Article 27 which shall beread as and applied mutatis mutandis in paragraph 1, Article 27-2;(2) Approval pursuant to the provision of paragraph 5, Article 40 of the Consumer
Livelihood Cooperative Association Act; or(3) Disposition pursuant to the provision of paragraph 1, 2, 4 or 5 of Article 94-2, orparagraph 1 or 2, Article 95 of the Consumer Livelihood Cooperative Association
Act.
4. With respect to those rules related to the implementation method of the business, themutual aid contract or the contribution out of the mutual aid business bylaws in respect of
the business of the liability mutual aid, if the administrative agency as stipulated in thepreceding paragraph intends to enact or change the Ordinance of Ministry of Health,Labour and Welfare under paragraph 1, the same Article which shall be read as andapplied mutatis mutandis pursuant to the provision of paragraph 2, Article 26-3 of theConsumer Livelihood Cooperative Association Act, such agency shall consult with the
Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister inadvance.
5. With respect to those rules related to the implementation method of the business, themutual aid contract or the contribution out of the mutual aid rules in respect to thebusiness of the liability mutual aid, the administrative agency as stipulated in paragraph 1,
Article 27 which shall be read as and applied mutatis mutandis in paragraph 2, Article27-2 shall, if such agency intends to make disposition as set forth in each of the following
items, obtain consents of the Minister of Land, Infrastructure, Transport and Tourism and
the Prime Minister in advance.
(1) Order for change pursuant to the provision of paragraph 3, Article 27 which shall beread as and applied mutatis mutandis in paragraph 2, Article 27-2;(2) Approval pursuant to the provision of paragraph 1 or 4, Article 9-6-2 of the Act on
the Cooperative Associations of Small and Medium Enterprises (including the casewhere the provisions shall be applied mutatis mutandis in paragraph 5, Article 9-9 ofthe same Act); or(3) Disposition pursuant to the provision of paragraph 1, Article 106, or paragraph 1, 2, 4
and 5, Article 106-2 of the Act on Cooperative Associations of Small and Medium
Enterprises.
6. With respect to those rules related to the implementation method of the business, themutual aid contract or the contribution out of the mutual aid rules in respect of thebusiness of the liability mutual aid, if the administrative agency as stipulated in thepreceding paragraph intends to enact or change the Ministerial Ordinance under paragraph
2, Article 9-6-2 which shall be applied in an alternative reading of paragraph 3, the same
Article of the Act on the Cooperative Associations of Small and Medium Enterprises(including the case where the provisions shall be applied mutatis mutandis in paragraph 5,
Article 9-9 of the same Act), such agency shall consult with the Minister of Land,
Infrastructure, Transport and Tourism and the Prime Minister in advance.

28

AUTOMOBILE LIABILITY SECURITY ACT(Reserve funds)
Article 28-3. Notwithstanding the provision of Article 116 of the Insurance Business Act, theinsurance company shall accumulate the total amount of balances of revenue and expenseand of invested assets of the business of the liability insurance as reserve funds asprovided in the competent Ministerial Ordinance. In such case, the reserve funds
accumulated shall not, except the case where the reserve funds are appropriated to coverany deficient balance of the business of the liability insurance and other cases as provided
in the competent Ministerial Ordinance, be drawn down.
2. The provision of the preceding paragraph shall be applied mutatis mutandis to theagricultural cooperatives, etc. In any such case, in the same paragraph, “insurancecompany” shall be read as “agricultural cooperatives, etc.,” “notwithstanding theprovision of Article 116 of the Insurance Business Act” as “notwithstanding the provisionof Article 11-13 of the Agricultural Cooperative Association Act,” and “business of theliability insurance” as “business of the liability mutual aid.”
3. The provision of paragraph 1 shall be applied mutatis mutandis to the consumer
cooperatives, etc. In any such case, in the same paragraph, “insurance company” shall beread as “consumer cooperatives, etc.,” “notwithstanding the provision of Article 116 of the
Insurance Business Act” as “notwithstanding the provision of Article 50-7 of theConsumer Livelihood Cooperative Association Act,” and “business of the liability
insurance” as “business of the liability mutual aid.”
4. The provision of paragraph 1 shall be applied mutatis mutandis to the common facility
cooperatives, etc. In any such case, in the same paragraph, “insurance company” shall beread as “common facility cooperatives, etc.,” and “notwithstanding the provision of
Article 116 of the Insurance Business Act”, “business of liability insurance” and “businessof the liability insurance” as “business of the liability mutual aid.”
5. The competent Ministerial Ordinance under paragraph 1 (including the case where theprovisions shall be applied mutatis mutandis in the preceding three paragraphs) shall be anorder jointly issued by the Prime Minister, the Minister of Health, Labor and Welfare, theMinister of Agriculture, Forestry and Fisheries, the Minister of Land, Infrastructure,
Transport and Tourism and the Minister with jurisdiction over the business.
(Joint pooling affairs)
Article 28-4. The insurance company and the cooperative (excluding the cooperative whichconcluded a contract where whole of mutual aid liability is covered by re-mutual aid withother cooperatives, and the cooperative which concluded a contract where whole of the
re-mutual aid liability is covered by retrocession-mutual aid with other cooperatives; thesame shall be applied in this Article) shall perform jointly each other the affairs of
calculation, allocation and collection of the premium, and insurance claim, etc.
(hereinafter referred to as “joint pooling affairs” in this Article) as set forth in thefollowing items.
(1) The balance of the premium of the liability mutual aid and other amount of money
received by the insurance company pursuant to the provision of this Act or the29

AUTOMOBILE LIABILITY SECURITY ACTcontribution, the re-contribution of the re-mutual aid or the retrocession-contributionof the retrocession-mutual aid, and other amount of money received by thecooperative pursuant to the provisions of this Act from which the amount of money
paid to the Government pursuant to the provisions of Article 78 and expenses forcarrying out the business of the liability insurance of the insurance company(meaning the balance of the premium from which the amount expected to beappropriated to insurance claim payment and the amount expected to be paid to theGovernment pursuant to the provisions of the same Article in the future are deducted)
or expenses for carrying out the business of the liability mutual aid of the cooperative(meaning the balance of the contribution, re-mutual aid contribution or
retrocession-mutual aid contribution from which the amount expected to beappropriated to the payment of the mutual aid claim, re-mutual aid claim or
retrocession-mutual aid claim and the amount expected to be paid to the Government
in the future pursuant to the provisions of the same Article are deducted) are
deducted shall be allocated to the insurance company and the cooperative according
to the ratio by the insurance company and the cooperative (hereinafter referred to as“allocation ratio” in this Article) as provided in the bylaws of the following
paragraph.
(2) The balance obtained from the amount of the insurance claim payment and otheramount paid by the insurance company pursuant to the provisions of this Act or as
provided in the contract of the liability insurance or the liability mutual aid claim, there-mutual aid claim or the retrocession-mutual aid claim and other money paid by thecooperative pursuant to the provisions of this Act or as provided in the contract ofliability mutual aid, re-mutual aid or retrocession-mutual aid from which any amountof money received from the Government pursuant to the provisions of paragraph 4,
Article 16 or paragraph 4, Article 17 (including the case where the provisions shallbe applied mutatis mutandis in paragraph 1, Article 23-3) are deducted shall becollected from the insurance company and the cooperative according to the allocation
ratio.
2. The insurance company and the cooperative shall prepare bylaws providing the necessary
matters concerning the allocation ratio and the joint pooling affairs, and the insurancecompany shall file the bylaws to the Minister of Land, Infrastructure, Transport andTourism and the Prime Minister and the cooperative shall file those to the Minister ofLand, Infrastructure, Transport and Tourism and the Minister of Health, Labor andWelfare, the Minister of Agriculture, Forestry and Fisheries or the Minister withjurisdiction over the business. If the bylaws are changed, the same shall be applied.
3. The Minister of Land, Infrastructure, Transport and Tourism may, in order to look into the
management situation of the joint pooling affairs, to the extent of necessity, request theinsurance company or the cooperative to submit necessary reports or materials concerning
such joint pooling affairs. In any such case, the Minister of Land, Infrastructure, Transport
and Tourism shall consult with the Prime Minister, the Minister of Health, Labour andWelfare, the Minister of Agriculture, Forestry and Fisheries or the Minister with30

AUTOMOBILE LIABILITY SECURITY ACT

jurisdiction over the business in advance.
4. The Minister of Land, Infrastructure, Transport and Tourism, the Prime Minister, theMinister of Health, Labour and Welfare, the Minister of Agriculture, Forestry and
Fisheries and the Minister with jurisdiction over the business may, if it is deemed that thecontent of the bylaws filed pursuant to the provisions of paragraph 2 violates the Acts andregulations or wrongfully and discriminatory treats specified persons, or if it is deemedthat the joint pooling affairs is not properly carried out, give an order to the insurancecompany or the cooperative to the effect that they should jointly change the bylaws andtake other necessary measures.
(Filing concerning concerted activity)
Article 29. With respect to concerted activity concerning the business of the liability
insurance as set forth in item (1), paragraph 1, Article 101 of the Insurance Business Act(including the case where the provisions shall be applied mutatis mutandis in Article 199of the same Act), if the Prime Minister has given its approval pursuant to the provision ofparagraph 1, Article 102 of the same Act (including the case where the provisions shall beapplied mutatis mutandis in Article 199 of the same Act), the Prime Minister shall notify
to the effect to the Minister of Land, Infrastructure, Transport and Tourism.
(Duty of report of loss ratios, etc.)
Article 29-2. To the person which is designated by the Prime Minister (referred to as “ratingorganization” in the following paragraph) out of those which are non-life insurance ratingorganizations and perform calculation of the standard full rates of the liability insurance asprovided in the Cabinet Office Ordinance, the insurance company and the cooperative
shall report loss ratios and necessary matters for calculation of the insurance rates of theliability insurance or the contribution rates.
2. The cooperative may request the rating organization to furnish materials that have beenused as the bases for calculation of the standard full rates of the liability insurance.
3. The Prime Minister shall, if he/she intends to enact or change respectively the Cabinet
Office Ordinance under paragraph 1, consult with the Minister of Land, Infrastructure,
Transport and Tourism and the Minister of Health, Labour and Welfare, the Minister ofAgriculture, Forestry and Fisheries and the Ministry with jurisdiction over the business inadvance.
(Agency contract)
Article 30. The insurance companies or cooperatives shall conclude agency contracts
concerning the liability insurance or the liability mutual aid with organizations or others
established for the purpose of promoting automobile transportation and transportation
business and which are deemed to be appropriate in smoothly carrying out the business of
the liability insurance or the liability mutual aid.

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AUTOMOBILE LIABILITY SECURITY ACT

Section 4. Automobile Liability Insurance Council(Establishment)
Article 31. The Automobile Liability Insurance Council (hereinafter referred to as “Council”)
shall be established in the Financial Services Agency.
Article 32. Deleted.
(Reference to the Council, etc.)
Article 33. In the case as stipulated in paragraph 1, Article 28, if the Prime Minister intends tomake a disposition as stipulated in the same paragraph or if the Prime Minister intends tomake a disposition as stipulated in paragraph 2 or paragraph 4, the same Article, the Prime
Minister shall refer the disposition to the Council. In the case as stipulated in paragraph 3,
the same Article, if the Prime Minister intends to shorten the period as stipulated in thefirst sentence of the same paragraph or the Prime Minister intends not to give an order as
stipulated in the second sentence of the same paragraph, the same shall be applied.
2. If the Prime Minister intends to give its consent pursuant to the provisions of paragraph 1,
paragraph 3 or paragraph 5, Article 28-2, the Prime Minister shall refer the matter to theCouncil.
3. The Council shall, in response to the inquiry pursuant to the provisions of the preceding
paragraph, investigate and deliberate with respect to the consent of the Prime Minister
pursuant to the provisions of paragraph 1, paragraph 3 or paragraph 5, Article 28-2.
Article 34. Deleted.
(Members)
Article 35. Member of Council shall be appointed by the Prime Minister as provided in the
Cabinet Order upon obtaining the consent of the Minister of Land, Infrastructure,
Transport and Tourism.
Article 36 through Article 38. Deleted.
(Delegation to the Cabinet Order)
Article 39. Organization, members, staff and other necessary matters regarding the Council
other than those stipulated in Article 31, Article 33 and Article 35 shall be provided in the
Cabinet Order.
Article 40 through Article 70. Deleted.
CHAPTER IV.

GOVERNMENT’S AUTOMOBILE LIABILITY COMPENSATION
BUSINESS(Automobile Liability Compensation Business)
Article 71. The Government shall carry out Automobile Liability Compensation Businesspursuant to the provisions of this Act.
(Contents of business)
Article 72. In the case where a person has been killed or injured by operation of an

32

AUTOMOBILE LIABILITY SECURITY ACT

automobile, if the victim is unable to make a claim for damage pursuant to the provisionof Article 3 for reason that the owner of the automobile is not identified, the Government
shall, at the victim’s request, indemnify the victim for damage to the extent of the amountas provided in the Cabinet Order. In the case where a person other than the insured of
liability insurance and the insured of mutual aid is liable to compensate for damage
pursuant to the provision of Article 3 (excluding the case where such liability arises due tooperation of any automobile as stipulated in Article 10), the Government shall, at thevictim’s request, indemnify the victim for damage to the extent of the amount as provided
in the Cabinet Order.
2. When the Government received a claim pursuant to the provision of paragraph 4, Article
16 or paragraph 4, Article 17 (including the case where the provisions shall be appliedmutatis mutandis in paragraph 1, Article 23-3), the Government shall make reparation
pursuant to these provisions.
3. The procedures for the claim under the preceding two paragraphs shall be provided in
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
(Adjustment, etc. with benefits given under other Acts and regulations)
Article 73. In the case where the victim is entitled to receive a payment of benefit
corresponding to the indemnity for damage pursuant to the provision of paragraph 1, thepreceding Article under the Health Insurance Act (Act No. 70, 1922), the Workmen’s
Accident Compensation Insurance Act (Act No.. 50, 1947) or other Acts and regulationsas provided in the Cabinet Order, the Government shall not indemnify for damage
pursuant to the provision of paragraph 1, the preceding Article to the extent of the amountcorresponding to such benefit.
2. In the case of the second sentence of paragraph 1, the preceding Article, if the victim hasreceived compensation for damage from the person who is liable to compensate for suchdamage pursuant to the provision of Article 3, the Government shall not indemnify fordamage pursuant to the provision of the second sentence of paragraph 1, the preceding
Article to the extent of the amount the victim has received.
(The period of indemnity for damage pursuant to the provision of paragraph 1, Article 72)
Article 73-2. After the claims are made for indemnity for damage pursuant to the provisionof paragraph 1, Article 72, until the period necessary to confirm the accident caused byoperation of an automobile related to said claims and the amount of damage to beindemnified lapses, the Government shall not be liable for the delay of the payment forindemnity for damage.
2. In the case where the Government makes necessary investigation to confirm the matters
stipulated in the preceding paragraph, if the victim prevents said investigation without due
reasons, or does not respond to it, the Government shall not be liable for the delay of thepayment for indemnity for damage caused by those acts.
(Prohibition of attachment)
Article 74. The right of claim pursuant to the provision of paragraph 1, Article 72 may not be
attached.

33

AUTOMOBILE LIABILITY SECURITY ACT(Prescription)
Article 75. The right of claim pursuant to paragraph 4, Article 16 or paragraph 4, Article 17(including the case where the provisions shall be applied mutatis mutandis in paragraph 1,
Article 23-3) or paragraph 1, Article 72 shall become extinct by prescription after thelapse of three years.
(Subrogation, etc.)
Article 76. If the Government has made indemnity for damage pursuant to the provision ofparagraph 1, Article 72, the Government shall acquire the right that the victim has against
the person who is liable to compensate for damage, to the extent of such amount ofcompensation.
2. In the case where any damage caused by malicious intent of the policyholder or the
insured or the policyholder of mutual aid or the insured of mutual aid, if the insurancecompany or a cooperative has paid the amount of compensation for damage to the victim
pursuant to the provision of paragraph 1, Article 16 (including the case where theprovisions shall be applied mutatis mutandis in paragraph 1, Article 23-3), theGovernment shall acquire the right owned by the victim against the policyholder or the
insured or the policyholder of mutual aid or the insured of mutual aid, to the extent of theamount paid.
3. In the case where the owner’s liability for compensation for damage has not arisen, if theinsurance company or the cooperative has made the provisional payment to the victim
pursuant to the provision of paragraph 1, Article 17 (including the case where theprovisions shall be applied mutatis mutandis in paragraph 1, Article 23-3), theGovernment may claim the refund thereof against the victim.
(Entrustment of business)
Article 77. The Government may, as provided in the Cabinet Order, entrust the insurancecompany or the cooperative with a part of its business pursuant to the provision ofparagraph 1, Article 72.
2. Notwithstanding the provisions as set forth in each of the following items, the cooperative
may conduct the business entrusted pursuant to the provision of the preceding paragraph:(1) Article 10 of the Agricultural Cooperative Association Act;
(2) Article 10 of the Consumer Livelihood Cooperative Association Act; and(3) Article 9-2 or Article 9-9 of the Act on Cooperative of Small and Medium
Enterprises, etc.
3. The Minister of Land, Infrastructure, Transport and Tourism shall, if the Minister of Land,
Infrastructure, Transport and Tourism has entrusted pursuant to the provision of paragraph
1, make a public notice of the name of the insurance company or the cooperative which
accepted such entrustment and other matters as provided in Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism.
(Automobile Liability Compensation Business Contribution)
Article 78. The insurance company, cooperative and person who operates automobile asprovided in the Cabinet Order out of those as stipulated in Article 10 shall, as provided in34

AUTOMOBILE LIABILITY SECURITY ACT

Ordinance of Ministry of Land, Infrastructure, Transport and Tourism, pay to theGovernment the amount as provided in the Cabinet Order as Automobile Liability
Compensation Business Contribution.
(Negligence fine)
Article 79. If the Government has indemnified for damage pursuant to the provision of thesecond sentence of paragraph 1, Article 72, the Government may collect the amount asprovided in the Cabinet Order as negligence fine from the person who is liable tocompensate for damage.
(Disposition for failure to pay the levy)
Article 80. If there is any person who fails to pay Automobile Liability Compensation
Business Contribution under Article 78 or the negligence fine under the preceding Article,
the Minister of Land, Infrastructure, Transport and Tourism shall press the person for
payment thereof providing the deadline of payment.
2. The Minister of Land, Infrastructure, Transport and Tourism shall, if the Minister of Land,
Infrastructure, Transport and Tourism presses for payment pursuant to the provision of thepreceding paragraph, dispatch a letter of pressing to the person who is obligated to pay.
In this case, the deadline which should be provided in such letter of pressing shall be thedate after the lapse of ten or more days counting from the date of dispatch of the letter.
3. Notwithstanding the provision of Article 153 of the Civil Code, the pressing pursuant toparagraph 1 shall have the effect of interruption of prescription.
4. If the person who was pressed pursuant to the provision of paragraph 1 fails to pay
Automobile Liability Compensation Business Contribution or the negligence fine within
the deadline provided in the same paragraph, the Minister of Land, Infrastructure,
Transport and Tourism shall make a disposition against the person according to theexample of disposition for failing to pay the national taxes.
(Order of preferential rights)
Article 81. The preferential right of Automobile Liability Compensation BusinessContribution under Article 78 and the negligence fine under Article 79 shall be ranked
after those of the national taxes and local taxes.
(Transfer of expenditure concerning the Automobile Liability Compensation Business)
Article 82. The Government shall, with respect to automobiles as stipulated in Article 10(excluding those as provided in the Cabinet Order under Article 78 and those operated
solely at places other than roads), every fiscal year, as provided in the budget, transfer theamount corresponding to Automobile Liability Compensation Business Contribution
under Article 78 from the General Account of the Government to the Automobile Safety
Special Account.
2. The Government shall, every fiscal year, as provided in the budget, transfer a part ofexpenditure required for the execution of the business of the Automobile Liability
Compensation Business as stipulated in this Act from the General Account of theGovernment to the Automobile Safety Special Account.

35

AUTOMOBILE LIABILITY SECURITY ACT(Reports and on-the-spot inspections)
Article 82-2. To the extent of necessity to implement the provisions of Article 78, theMinister of Land, Infrastructure, Transport and Tourism may order insurance companies
or cooperatives to provide reports concerning their business or financial condition, or
instruct officials to enter the insurance companies or cooperatives’ sales offices, businessoffices or other premises and inspect the conditions of their business or examine theirbooks, documents and other things, or to question related persons, as provided in
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
2. The provisions of paragraph 2 and paragraph 3, Article 23-2 shall be applied mutatis
mutandis to the on-the-spot inspections and questions pursuant to the provision of thepreceding paragraph.
CHAPTER V.

MISCELLANEOUS PROVISIONS(Exemption in the case of double contracts)
Article 82-3. In the case where two or more liability insurance contracts or liability mutual
aid contracts are concluded with respect to one unit of automobile, the insurance company
or the cooperative shall, with respect to contracts other than the contract concluded at theearliest time among them, be exempted from the liability for indemnity for damage,
payment of the amount of compensation for damage pursuant to the provision ofparagraph 1, Article 16 (including the case where the provisions shall be applied mutatis
mutandis in paragraph 1, Article 23-3), payment of the provisional payment pursuant to
the provision of paragraph 1, Article 17 (including the case where the provisions shall beapplied mutatis mutandis in paragraph 1, Article 23-3) (referred to as “indemnity, etc. fordamage” in the succeeding paragraph) related to the accident by operation of an
automobile which occurred during the insurance periods or the mutual aid periods which
overlap the insurance period or the mutual aid period of the contract concluded at theearliest time among them.
2. In the case of the preceding paragraph, if there are two or more contacts which wereconcluded at the earliest time, the insurance company or the cooperative shall, withrespect to one contract out of these contracts, be exempted from the liability for theindemnity, etc. for damage with respect to any amount exceeding the amount obtained by
dividing the amount to be paid for the indemnity, etc. for damage regarding such contractby the number of contracts.
3. In the case where the insurance company or the cooperative has, with respect to contracts
other than the contract concluded at the earliest time under paragraph 1, received the claim
for payment of the amount of compensation for damage pursuant to the provision ofparagraph 1, Article 16 (including the case where the provisions shall be applied mutatis
mutandis in paragraph 1, Article 23-3) or payment of the provisional payment pursuant to
the provision of paragraph 1, Article 17 (including the case where the provisions shall beapplied mutatis mutandis in paragraph 1, Article 23-3) (hereinafter referred to as “paymentof the amount of compensation for damage, etc.” in this paragraph and the succeeding36

AUTOMOBILE LIABILITY SECURITY ACT

paragraph), if such insurance company or such cooperative has made the payment of theamount of compensation for damage, etc., except for the case where such insurancecompany or such cooperative or the victim was aware of the fact that the contract
concerned with such claim was a contract other than those which was concluded at theearliest time under paragraph 1, to the extent of the amount paid, such insurance company
or such cooperative shall acquire the right that the victim has against the person who isliable to compensate for damage and shall lose the right to claim for refund of the benefit
paid to the victim.
4. The provision of the preceding paragraph shall be applied mutatis mutandis to the casewhere the insurance company or the cooperative has, with respect to the contractconcluded at the earliest time under paragraph 1, paid the amount which such insurancecompany or the cooperative should have been exempted from the liability for payment of
the amount of compensation for damage, etc. pursuant to the provision of paragraph 2.
In this case, in the preceding paragraph, “the fact contract concerned with the claim was acontract other than those which was concluded at the earliest time in paragraph 1” shall beread as “the fact that there is a contract which was concluded at the earliest time inparagraph 1,” and “the amount paid” as “the amount which should be exempted fromliability for payment of the amount of compensation for damage, etc. pursuant to theprovision of paragraph 2.”(Supervision of business)
Article 83. The business of the Government concerning the automobile liability reinsurance
business, the automobile liability mutual aid insurance business and the Automobile
Liability Compensation Business shall be supervised by the Minister of Land,
Infrastructure, Transport and Tourism.
(Delegation of authorities)
Article 84. The Prime Minister shall delegate authorities under this Act (excluding those asprovided in the Cabinet Order) to the Commissioner of the Financial Services Agency.
2. Matters belonging to the authorities of the Minister of Land, Infrastructure, Transport andTourism pursuant to the provision of Article 10-2, the preceding Chapter and Article 85
may cause the Directors-General of District Transport Bureaus to perform them asprovided in the Cabinet Order.
(Prohibited acts, etc.)
Article 84-2. No person shall forge or alter an insurance sticker, a mutual aid sticker or an
insurance/mutual aid exempt sticker, for the purpose of use thereof, nor shall use suchforged or altered sticker.
2. No person shall manufacture the article bearing external appearance similar to theinsurance/mutual aid exempt sticker for the purpose of use thereof nor shall use sucharticles.
3. No person shall, except in the case pursuant to the provisions of this Act and other cases
where there is any due reason, issue an insurance sticker or mutual aid sticker to otherpersons.

37

AUTOMOBILE LIABILITY SECURITY ACT

4. Matters to be observed by the insurance company or the cooperative with respect tosecuring proper issue of the insurance sticker or mutual aid sticker shall be provided in
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
(Presentation of certificate)
Article 85. If the Minister of Land, Infrastructure, Transport and Tourism deems it necessary
for achieving the purpose under Article 1, the Minister of Land, Infrastructure, Transport
and Tourism may cause official to request any person driving an automobile to present thecertificate of automobile liability insurance or the certificate of automobile liability
mutual aid on the road or in any other place where the automobile is located.
2. The official mentioned in the preceding paragraph shall carry the voucher showing theirstatus with them and show such voucher to related persons if they are requested to do so.
(Delegation to the Cabinet Order)
Article 85-2. In addition to those as stipulated in this Act, matters necessary for enforcementof this Act shall be provided in the Cabinet Order.
(Duty of the Minister of Land, Infrastructure, Transport and Tourism)
Article 86. The Minister of Land, Infrastructure, Transport and Tourism shall, in exercising
his/her authorities as stipulated in this Act, endeavor not to fail to protect the victims.
CHAPTER VI. PENAL PROVISIONS
Article 86-2. A person who has violated the provision of paragraph 1, Article 84-2 shall besentenced to the penal servitude for a period not exceeding three years or a fine notexceeding one million yen, or to both.
Article 86-3. A person who comes under any of the following items shall be sentenced topenal servitude for a period not exceeding one year or a fine not exceeding five hundred
thousand yen:
(1) a person who has violated the provisions of Article 5;(2) a person who has violated the provisions of paragraph 1, Article 23-9, by having
divulged confidential information learned concerning such duties or used suchinformation for personal gain; or(3) a person who has violated the provisions of paragraph 2 or paragraph 3, Article 84-2.
Article 87. A person who has, by fraudulent or other wrongful means, been issued or reissued
an automobile liability insurance certificate or an automobile liability mutual aid
certificate or an insurance sticker, mutual aid sticker or insurance/mutual aid exempt
sticker shall be sentenced to penal servitude for a period not exceeding six months or afine not exceeding two hundred thousand yen.
Article 87-2. A person who has violated an order pursuant to the provisions of paragraph 4,
Article 16-8 (including the case where the provisions shall be applied mutatis mutandis inparagraph 1, Article 23-3) shall be sentenced to a fine not exceeding one million yen.
Article 88. A person who comes under any of the following items shall be sentenced to a fine38

AUTOMOBILE LIABILITY SECURITY ACT

not exceeding three hundred thousand yen:
(1) a person who has violated the provisions of Article 8 or paragraph 1 or paragraph 2,
Article 9-3 (including the case where the provisions shall be applied mutatis
mutandis in paragraph 3, Article 9-5 and paragraph 4, Article 10-2);(2) a person who does not submit a report, or submit a false report, or prevents, obstructs
or evades an inspection, or does not respond to or responds falsely to questions,pursuant to the provisions of paragraph 1, Article 23-2 (including the case where theprovisions shall be applied mutatis mutandis in paragraph 1, Article 23-3) or inparagraph 1, Article 82-2; or(3) a person who does not submit a report or materials, or submits a false report ormaterials pursuant to the provisions of paragraph 3, Article 28-4.
Article 88-2. If any of the following items apply, an officer or employee of a designateddispute settlement organization who has engaged in illegal conduct shall be sentenced to afine not exceeding three hundred thousand yen:
(1) in the case of terminating all dispute settlement activities without receiving
permission pursuant to the provision of paragraph 1, Article 23-15;(2) in the case of not furnishing books, or not making entries in books, or making false
entries in books, or not retaining books in violation of the provisions of Article
23-16; or(3) in the case of not submitting a report, or submitting a false report, or rejecting,obstructing or evading an inspection, or not responding to or responding falsely toquestions pursuant to the provision of paragraph 1, Article 23-17.
Article 89. A person who comes under any of the following items shall be sentenced to thefine not exceeding two hundred thousand yen:
(1) a person who has violated the provision of paragraph 3, Article 9-3 (including thecase where the provisions shall be applied mutatis mutandis in paragraph 3, Article
9-5);(2) a person who has violated the provisions of Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism under the provision of paragraph 4, Article
84-2; or(3) a person who has refused or disturbed the presentation pursuant to the provision ofparagraph 1, Article 85.
Article 90. If a representative of a legal person or an agent, employee or any other person of alegal person or a person has committed any of the offenses under item (1) or item (2) ofArticle 86-3 or Article 87 through the preceding Article with respect to the business orproperty of the legal person or person, not only the person who has committed the offence
shall be punished but also the legal person or person concerned shall also be sentenced to
the fine as respectively mentioned in this Article.
Article 91. In the case where any of the following items applies to the insurance company or
the cooperative, director or officer of such insurance company (in the case of the foreign

39

AUTOMOBILE LIABILITY SECURITY ACT

insurance company, etc. as stipulated in paragraph 9, Article 2 of the Insurance Business
Act, the representative of such foreign insurance company in Japan; hereinafter the same
shall be applied) or director of such cooperative shall be sentenced to a fine not exceeding
one million yen:
(1) in the case of not submitting a filing, or submitting a false filing, pursuant to theprovisions of Article 16-6 (including the case where the provisions shall be appliedmutatis mutandis in paragraph 1, Article 23-3);(2) in the case of not submitting a report or materials, or submitting a false report ofmaterials, pursuant to the provisions of paragraph 2, Article 23-12;(3) in the case of violating the provisions of paragraph 1 or paragraph 2, Article 24; or(4) in the case of violating an order pursuant to the provisions of paragraph 4, Article
28-4.
2. If the insurance company or the non-life insurance rating organization has violated anorder pursuant to the provisions of Article 26-3, director or officer of the insurancecompany or director of such non-life insurance rating organization shall be sentenced to
the fine not exceeding one million yen.
3. If the cooperative has violated an order pursuant to the provisions of paragraph 3, Article
27 (including the case where the provisions shall be applied mutatis mutandis inparagraph 1 and paragraph 2, Article 27-2), director of such cooperative shall be sentenced
to a fine not exceeding one million yen.
Article 92. A person who has received an explanation (including an explanation in a caseregarded as an explanation etc. by written statement pursuant to the provisions (including
cases where the provision shall be applied mutatis mutandis in paragraph 1, Article 23-3)
of paragraph 5, Article 16-5) pursuant to the provisions of paragraph 1, Article 16-5
(including the case where the provision shall be applied mutatis mutandis in paragraph 1,
Article 23-3) by fraudulent or other wrongful means shall be sentenced to a fine notexceeding one hundred thousand yen.
Supplementary Provisions [Extract](Effective date)
1. The effective date of this Act shall be provided in the Cabinet Order within a time limit
not to exceed eight months counting from the date of promulgation.
(Special exceptions to transfer from the General Account)
2. The provisions of paragraph 2, Article 82 shall not be applied for the time being.
3. In the case of the preceding paragraph, the provisions of subitem (b), item (1), paragraph
1, Article 213 and paragraph 1, Article 215 of the Act on the Special Account (Act No. 23,
2007) shall not be applied.
(Automobile accident prevention program)
4. In order to improve protection for victims and contribute to the prevention of automobile
accidents, until further notice the Minister of Land, Infrastructure, Transport and Tourism

40

AUTOMOBILE LIABILITY SECURITY ACTshall make or amend programs concerning projects related to measures to improve
protection for victims or prevent the occurrence of automobile accidents (hereinafterreferred to as “automobile accident prevention program”) by appropriating assets thatbelong to the Automobile Accident Prevention Account pursuant to the provision ofparagraph 3 of the Supplement to the Automobile Liability Compensation BusinessSpecial Account Act (Act No. 134, 1955) before its repeal, after conversion pursuant to
the provision of paragraph 15 of the Supplement to the same Act, pursuant to theprovision of paragraph 17, Article 66 of the Supplement to the Act on the Special
Account; belong to the same Account in the Automobile Liability Compensation BusinessSpecial Account pursuant to the provision of paragraph 4, Article 227 of the Supplement
to the Act on the Special Account; and belong to the same Account in the Automobile
Safety Special Account pursuant to the provision of paragraph 8, Article 228 of the
Supplement to the same Act, as stipulated by paragraph 4, Article 4 of the Supplement to
the Act to Partially Amend the Automobile Liability Security Act and the Automobile
Liability Reinsurance Special Account Act (Act No. 83, 2001).
5. Based on the automobile accident prevention programs, the Government shall stably
provide the subsidies in Article 46 of the General Act of Independent Administrative
Agencies (Act No.. 103, 1999), the fund in paragraph 3, Article 5 of the Independent
Administrative Agency National Organization for Automotive Safety and Victims’ Aid Act(Act No.. 183, 2002) and the loans in paragraph 1, Article 18 of the same Act to the
Independent Administrative Agency National Organization for Automotive Safety andVictims’ Aid, as well as the subsidies to the Independent Administrative Agency National
Organization for Automotive Safety and Victims’ Aid’s and persons who implement
projects pursuant to the automobile accident prevention programs.
6. If the Minister of Land, Infrastructure, Transport and Tourism make or amend automobile
accident prevention programs, the Minister shall consult in advance with the Minister ofFinance and the National Public Safety Commission.
(Subsidies appropriated for premiums, etc.)
7. In order to appropriate for the premiums partially for liability insurance contracts or thecontribution for liability mutual aid contracts that policyholders and policyholders ofmutual aid should pay to insurance companies or cooperatives for liability insurance
contracts or liability mutual aid contracts that will become effective during the period
from April 1, 2002 until March 31, 2008, within the scope of the budget the Government
shall grant a subsidy corresponding to the amount that should be appropriated (hereinafterreferred to as “subsidies appropriated for premiums, etc.”) to insurance companies orcooperatives as provided in the Cabinet Order.
8. The subsidies appropriated for premiums, etc. shall be granted without delay by the fiscal
year following the fiscal year that includes the date on which the liability insurance or
liability mutual aid becomes effective.

41

AUTOMOBILE LIABILITY SECURITY ACTSupplementary Provisions (Act No. 65, June 13, 2008) [Extract](Effective date)
Article 1. This Act shall take effect as from the date provided in the Cabinet Order within atime limit not to exceed six months counting from the date of promulgation.
(It took effect as from December 12, 2008 by Cabinet Order No. 368, 2008.)(The rest is omitted.)

42

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY
SECURITY ACT(Cabinet Order No. 286, October 18, 1955)
History of Amendment
No. 170, June 23, 1960
No. 227, August 4, 1960
No. 233, June 1, 1962
No. 288, July 9, 1962
No. 326, September 13, 1963
No. 8, January 20, 1964
No. 250, July 16, 1964
No. 291, September 1, 1964
No. 203, June 29, 1966
No. 203, July 24, 1967
No. 274, September 1, 1967
No. 12, February 5, 1968
No. 270, October 31, 1969
No. 310, December 19, 1969
No. 263, September 18, 1970
No. 254, September 4, 1973
No. 331, October 30, 1973
No. 350, November 27, 1973
No. 11, January 24, 1975
No. 202, June 27, 1975
No. 347, December 5, 1975
No. 48, March 31, 1977
No. 261, June 27, 1978
No. 13, January 30, 1979
No. 11, January 30, 1981
No. 141, April 21, 1981
No. 6, January 21, 1983
No. 110, May 24, 1983
No. 35, March 17, 1984
No. 176, June 6, 1984
No. 268, September 7, 1984
No. 4, January 22, 1985
No. 198, June 28, 1989
No. 4, January 22, 1991
No. 259, July 24, 1992

No. 276, September 13, 1996
No. 84, March 28, 1997
No. 258, August 1, 1997
No. 262, September 3, 1999
No. 312, June 7, 2000
No. 419, December 21, 2001
No. 275, September 15, 2004
No. 315, October 15, 2004
No. 187, May 27, 2005
No. 139, March 31, 2006
No. 116, March 31, 2008
No. 116, May 2, 201143

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(Provision of the items that should be described in the certificate of automobile liability
insurance by electromagnetic means)
Article 1. If a person who intends to receive any of the dispositions provided in the main textof paragraph 1 of Article 9 of the Automobile Liability Security Act (hereinafter referred
to as “Act”) is to provide the matters that should be described in the certificate ofautomobile liability insurance to registration information processing organizations
pursuant to the provision of paragraph 2 of the same Article, he/she must, as stipulated in
the provisions of Ordinance of Ministry of Land, Infrastructure, Transport and Tourism, in
advance entrust the insurance company in writing or by electromagnetic means.
(Owners of automobiles for which contracts of liability insurance or liability mutual aid are
not required and scope of business thereof)
Article 1-2. The persons as provided in the Cabinet Order under Article 10 of the Act andsuch persons’ business as provided in the Cabinet Order under the same Article shall be as
follows:(1) The State: The business necessary for executing the duties of the Self-Defense
Forces as stipulated in the Self-Defense Forces Act (Act No. 165, 1954) in the caseof using automobiles to which the provisions of the Road Transport Vehicle Act (ActNo. 185, 1951) are not applied pursuant to the provisions of Paragraph 1, Article 114of the Self-Defense Forces Act;
(2) The forces of the United States of America stationed in Japan under the Treaty of
Mutual Cooperation and Security between Japan and the United States of America:
The business necessary for executing the duties; and(3) The forces of United Nations stationed in Japan under the Agreement on the Statusof the United Nations’ Forces in Japan: The business necessary for executing theduties.
(Automobiles unnecessary to issue insurance/mutual aid exempt sticker)
Article 1-3. The light automobiles which is not subject to inspection and motorcycles asprovided in the Cabinet Order under Paragraph 1, Article 10-2 of the Act shall be the light
automobiles not subject to inspection and motorcycles which are put into operation for the
purpose of the business as set forth in each item of the preceding article by the persons as
set forth in each item concerned.
(Limit of insurance)
Article 2. The limit of insurance under Paragraph 1, Article 13 of the Act shall be thefollowing per dead or injured person:(1) A dead person(a) For damage due to death (excluding the damage as set forth in subitem (b)):¥30,000,000(b) For damage due to injury resulting in death: ¥1,200,000(2) An injured person resulting in permanent disabilities requiring nursing care (meaning
the impediments remained in a body when injuries have been cured; hereinafter thesame.)

44

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(a) For damage (excluding damage as set forth in subitem (b)) due to permanent
disabilities requiring nursing care in the case of permanent disabilities that
require nursing care (including the case where two permanent disabilities
requiring nursing care come under the same grades) in the case the permanent
disabilities that require nursing care come under the grades as provided inAppendix 1: The amount as provided in the same List corresponding to thegrade which said permanent disabilities requiring nursing care comes to fall(b) For damage from injuries extending to permanent disabilities requiring nursing
care: ¥1,200,000(3) An injured person (excluding persons as set forth in the preceding item)(a) For damage due to injury (excluding damage as set forth in subitem (b) tosubitem (f)): ¥1,200,000(b) For damage due to two or more permanent disabilities which come under the
5th or higher grades as provided in Appendix 2: The amount as provided in thesame List corresponding to the grade which is higher by three grades than thegrade under which the heavier permanent disability comes to fall(c) For damage due to two or more permanent disabilities which come under the
8th or higher grades as provided in Appendix 2 (excluding the case as set forthin subitem (b)): The amount as provided in the same List corresponding to thegrade which is higher by two grades than the grade under which the heavier
permanent disability comes to fall(d) For damage due to two or more permanent disabilities which come under the
13th or higher grades as provided in Appendix 2 (excluding the case as set forthin subitem (b) and subitem (c)): The amount as provided in the same List
corresponding to the grade which is higher by one grade than the grade underwhich the heavier permanent disability comes to fall (if the amount concerned
exceeds the aggregate of the respective grades as provided in the same List, theamount shall be the aggregate.)(e) For damage due to two or more permanent disabilities which come under thegrades as provided in Appendix 2 (excluding the case as set forth in subitem (b)to subitem (d)): The amount as provided in the same List corresponding to thegrade under which the heavier permanent disability comes to fall(f) For damage due to permanent disability which comes under any of the grades asprovided in Appendix 2 (excluding the case as set forth in subitem (b) tosubitem (e)): The amount as provided in the same List corresponding to thegrade under which said permanent disability comes to fall
2. The limit of insurance under paragraph 1, Article 13 of the Act, in respect of the damage
due to the permanent disability in the event that a person already suffering frompermanent disability is to be aggravated by another injury to the same part of his/her body,shall be the amount obtained by deducting, from the amount as provided in Appendix 1 orAppendix 2 corresponding to the grade of said aggravated permanent disability as
provided in these same Lists, the amount as provided in these same Lists corresponding to45

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT

the grade as provided in these same Lists falling under the permanent disability alreadyexisted.
(Claim for payment of the amount of compensation for damage against the insurancecompany)
Article 3. A claim for payment of the amount of compensation for damage under Paragraph 1,
Article 16 of the Act shall be made by written statement describing the following matters:(1) Name and address of the claimant;(2) In the case of a claim for a dead person, the personal relationship between him/her
and the claimant;(3) Names and addresses of the defendant and victim, and the date and location of theaccident;(4) The automobile registration number or the vehicle number of the automobile
involved in the accident as provided in the provisions of the Road Transport Vehicle
Act, the identification plate number of such automobile as stipulated in Paragraph 3,
Article 446 of the Local Tax Act (Act No. 226, 1950) (including the case where theprovision shall be applied mutatis mutandis in Paragraph 2, Article 1 of the sameAct), or the registration number of such automobile as provided in the provisions of
the Convention on Road Traffic (in the case where there is no such number, thechassis number);(5) Name and address of the policyholder; and(6) Amount claimed and basis for calculation thereof.
2. The written statement under the preceding paragraph shall be accompanied by thefollowing documents:(1) A medical certificate or coroner’s certificate;(2) Written statements sufficient to prove the matters under item (2) and item (3) of thepreceding paragraph; and(3) Written statements sufficient to prove such basis of calculation under item (6) of thepreceding paragraph.
(Kind and amount of limit of loss, in which the payment of the amount of compensation orindemnity by insurance claim payment is to be limited)
Article 3-2. The loss as provided in the Cabinet Order under Article 16-2 of the Act shall be
the loss incurred from the victim’s inability to work for reason of medical care, and theamount as provided in the Cabinet Order under the same Article shall be ¥19,000 per day.
(Hearing, etc. of insured’s opinion)
Article 4. If an insurance company intends to pay the amount of compensation for damage,such insurance company shall hear the insured’s opinion in advance.
2. If an insurance company has paid the amount of compensation for damage, such insurancecompany shall notify the insured to that effect without delay.

46

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(Procedure for using information and communications technology)
Article 4-2. If an insurance company wishes to submit items pursuant to the provision of
Paragraph 4, Article 16-4 as stipulated in that same paragraph of the Act, the insurancecompany shall explain to the insured or the victim the type and details of the means it will
use as stipulated in the first sentence of the same paragraph (hereinafter referred to as“electromagnetic means”) and obtain their acceptance in writing or by electromagnetic
means in advance, as provided in Ordinance of Ministry of Land, Infrastructure, Transport
and Tourism and Cabinet Office Ordinance.
2. An insurance company that has obtained acceptance pursuant to the provision of thepreceding paragraph shall not submit the items as stipulated in Paragraph 4, Article 16-4of the Act to the insured or the victim by electromagnetic means if the insurance company
has received request in writing or by electromagnetic means from the insured or the victim
to the effect that the insured or the victim would not receive the items submitted byelectromagnetic means. This shall not be applied, however, in the case where the insured
or victim has again given his/her acceptance pursuant to the provision of the preceding
paragraph.
Article 4-3. The provisions of the preceding Article shall be applied mutatis mutandis if theinsurance company wishes to submit items as stipulated in the same paragraph pursuant to
the provision of Paragraph 5, Article 16-5 of the Act.
(Amount of provisional payment by the insurance company)
Article 5. The amount of the provisional payment under Paragraph 1, Article 17 of the Act
per dead person or injured person shall be as follows:(1) Dead person: ¥2,900,000(2) Person who has sustained any of the following injuries: ¥400,000(a) Having symptoms that spinal cord has been damaged due to fracture of spinal
column(b) Fracture of brachium or forearm, also having complication(c) Fracture of thigh or lower leg(d) Rupture of internal organs, also having peritonitis(e) Injury necessitating hospitalization for fourteen days or more, and requiringdoctor’s treatment for thirty days or more
(3) Person who has sustained any of the following injuries (excluding injuries as set
forth in subitem (a) to subitem (e) of the preceding item): ¥200,000(a) Fracture of spinal column(b) Fracture of brachium and forearm(c) Rupture of internal organs(d) Injury necessitating hospitalization and requiring doctor’s treatment for thirtydays or more(e) Injury necessitating hospitalization for fourteen days or more
(4) Person who has sustained injury which requires doctor’s treatment for eleven days ormore (excluding any injury as set forth in subitem (a) to subitem (e) of item (2), and47

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT

subitem (a) to subitem (e) of the preceding item): ¥50,000(Claim, etc. for provisional payment against the insurance company)
Article 6. The provision of Article 3 (except the part concerning the basis of calculation of theamount claimed) shall be applied mutatis mutandis to the claim for provisional payment
under Paragraph 1, Article 17 of the Act.
2. The provision of Paragraph 2 of Article 4 shall be applied mutatis mutandis to the casewhere the provisional payment under Paragraph 1, Article 17 of the Act has been paid.
(Submission of medical certificate of the designated doctor)
Article 7. If it is regarded particularly necessary, an insurance company may request a person,
who has made a claim for insurance claim payment, compensation for damages underParagraph 1, Article 16 of the Act or the provisional payment under Paragraph 1, Article
17 of the Act, to submit a medical certificate of a doctor designated by the insurancecompany. In such case, any necessary expenses shall be borne by the insurance company.
(Omission of documents to be attached)
Article 8. Notwithstanding the provisions of Paragraph 2, Article 3 (including the case where
the provision shall be applied mutatis mutandis in Article 6), documents under item (1)and item (2) of the same paragraph shall not be required to submit in the case of thefollowing claims:(1) Claim for the provisional payment under Paragraph 1, Article 17 of the Act to bemade simultaneously with the claim for compensation for damage under Paragraph 1,
Article 16 of the Act;
(2) Claim for compensation for damage under Paragraph 1, Article 16 of the Act to bemade after the claim for the provisional payment under Paragraph 1, Article 17 of theAct; or(3) Claim for the provisional payment under Paragraph 1, Article 17 of the Act to bemade after the claim for compensation for damage under Paragraph 1, Article 16 of
the Act.
(Category of automobile)
Article 9. Category of automobile under item (2), Article 20 of the Act shall be as follows:(1) Bus: Automobiles used for transportation of persons, with the passenger capacity of
eleven or more (excluding automobiles under item (5) and item (15) to item (17));(2) Commercial passenger automobile: Automobiles used for motor transport business,with the passenger capacity of ten or less (excluding automobiles under item (5),item (12), item (13), item (14-2), item (16) and item (17));(3) Private passenger automobile: Automobiles used for transportation of persons but not
for motor transport business, with the passenger capacity of ten or less (excluding
automobiles under item (5), item (12), item (13), and item (14-2) to item (18));(4) Tractor of trailer bus: Automobiles used for pulling the vehicle under the succeeding
item (excluding automobiles under item (12), item (13), item (14-2) and item (16) toitem (18));

48

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(5) Trailer bus: Automobiles with no engine used for transportation of persons(excluding automobiles under item (12), item (13) and item (14-2) to item (18));(6) Standard-size freight automobile: Standard-size automobiles under Article 3 of theRoad Transport Vehicle Act used for transportation of goods (excluding automobiles
under item (8), item (16) and item (17));(7) Tractor of standard-size trailer freight automobile: Automobiles used for pulling theautomobile under the succeeding item (excluding automobiles under item (12) toitem (14-2), item (16) and item (17));(8) Standard-size trailer freight automobile: Standard-size automobiles with no engine,
under Article 3 of the Road Transport Vehicle Act, which are used for transportationof goods (excluding automobiles under item (16) and item (17));(9) Small-size freight automobile: Small-size automobiles under Article 3 of the Road
Transport Vehicle Act used for transportation of goods (excluding automobiles underitem (11), item (12), item (16) and item (17));(10) Tractor of small-size trailer freight automobile: Automobiles used for pulling thevehicle under the succeeding item (excluding automobiles under item (12) to item
(14-2), item (16) and item (17));(11) Small-size trailer freight automobile: Small-size automobiles with no engine under
Article 3 of the Road Transport Vehicle Act used for transportation of goods(excluding automobiles under item (12), item (16) and item (17));(12) Small-size two-wheeled automobile: Small-size two-wheeled automobiles under
Article 3 of the Road Transport Vehicle Act (excluding automobiles under item (15)to item (17));(13) Light automobile: Light automobiles under Article 3 of the Road Transport Vehicle
Act (excluding automobiles under item (15) to item (17));(14) Large-size special purpose automobile: Large-size special purpose automobiles as
stipulated in Article 3 of the Road Transport Vehicle Act (excluding automobiles
under item (1) to item (5) and item (15) to item (17));(14-2) Small-size special purpose automobile: Small-size special purpose automobiles
under Article 3 of the Road Transport Vehicle Act (excluding automobiles under the
succeeding item and item (17));(15) Emergency automobile: Fire engines, ambulances and other automobiles for
emergency use as provided in Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism (excluding automobiles under the succeeding item and item(18));(16) Automobile for sale: Automobiles operated with the permission of temporary
operation under Paragraph 1, Article 34 of the Road Transport Vehicle Act(including the case where the provision shall be applied mutatis mutandis in
Paragraph 2, Article 73 of the same Act) or with the permission under Paragraph 1,
Article 36-2 of the same Act (including the case where the provision shall be appliedmutatis mutandis in Paragraph 2, Article 73 of the same Act), or light automobiles
showing the vehicle number plate as provided in Ordinance of Ministry of Land,

49

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTInfrastructure, Transport and Tourism operated for test run, forwarding or otherspecial reasons;(17) Specific automobile: sprinklers automobiles, advertising automobiles, hearses andother automobiles for specific use as provided in Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism (excluding automobiles under the preceding
item and the succeeding item);(18) Motorcycle: Motor-driven cycles under Paragraph 3, Article 2, of the Road Transport
Vehicle Act; and(19) Other automobile: Automobiles other than those under each of the preceding items.
(Payment or refund of premium in the case where risk has increased or decreased)
Article 10. The amount of premium, for which the insurance company may claim payment
pursuant to the provision of Paragraph 4, Article 22 of the Act or the policyholder may
claim refund pursuant to the provision of Paragraph 5 of the same Article, shall be thedifference between the premium calculated on a per diem basis for the number of days
from the day on which the risk is increased or decreased to the last day out of the whole
premium of the liability insurance contract covering the risk which existed prior to being
increased or decreased, and the premium calculated on a per diem basis for the same
number of days as the above out of the whole premium of the liability insurance contract
covering a new risk for the same period as that of such insurance contract (in the casewhere the whole premium is changed after the commencement of the insurance period
concerned, the premium is that prior to such change).
2. If the amount calculated pursuant to the provisions of the preceding paragraph contains afractional amount less than ten yen, or if the amount calculated is less than one hundredyen, that fractional amount or the total of calculated amount shall be rounded down tozero.
(Reasons for refusal of concluding contracts of liability insurance and liability mutual aid)
Article 11. Due reasons as provided in the Cabinet Order under Paragraph 1 and Paragraph 2
of Article 24 of the Act shall be as follows:(1) that the application for an insurance contract is on the automobiles as stipulated in
Article 10 of the Act;(2) that it is apparent that the applicant has made any false statement with respect of anyof the matters under each item, Article 20 of the Act;(3) that the premium in the case of the liability insurance or the contribution in the caseof the liability mutual aid has not been paid; or(4) that the application shall be made for a contract in which the last date, which iscounted from the date of the application, of the insurance period in the case of theliability insurance or the mutual aid period in the case of the liability mutual aid shallbe on or over the period as provided in Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism.

50

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(Provision to be applied mutatis mutandis)
Article 12. The provisions of Article 1, Article 2 through Article 8 and Article 10 shall beapplied mutatis mutandis to the liability mutual aid contract. In such case, in theseprovisions, the words “the certificate of automobile liability insurance” shall be read as“the certificate of automobile liability mutual aid,” “limit of insurance claim” as “limit ofmutual aid claim,” “insurance company” as “cooperative,” “policyholder” as“policyholder of mutual aid,” “insurance claim payment” as “mutual aid claim payment,”“insured” as “insured of mutual aid,” “liability insurance” as “liability mutual aid,”“premium” as “mutual aid premium” and “insurance period” as “mutual aid period.”
Article 13 through Article 19. Deleted.
(Indemnity amount limit for damage provided by the Automobile Liability Compensation
Business)
Article 20. The amount as provided in the Cabinet Order under Paragraph 1, Article 72 of the
Act shall be those respectively provided in Article 2 as a dead or an injured person.
2. The provisions of Article 3-2 shall be applied mutatis mutandis to the indemnity fordamages to be conducted by the Government pursuant to the provisions of Paragraph 1,
Article 72 of the Act.
(Acts and regulations to be provided in the Cabinet Order under Paragraph 1, Article 73 of theAct)
Article 21. The Acts and regulations to be provided in the Cabinet Order under Paragraph 1,
Article 73 of the Act shall be as follows:(1) The Mariners Insurance Act (Act No. 73, 1939);(2) The Labor Standard Act (Act No. 49, 1947; including the case where it follows thisAct in other Acts);(3) The Mariners Act (Act No. 100, 1947; including the case where it follows this Act inother Acts);(4) The Disaster Relief Act (Act No. 118, 1947);(5) The Fire Service Formation Act (Act No. 226, 1947);(6) The Fire Service Act (Act No. 186, 1948);(7) The Flood Prevention Act (Act No. 193, 1949);(8) The Government Employees’ Accident Compensation Act (Act No. 191, 1951;
including the cases where the provisions shall be applied mutatis mutandis to otherActs or it follows this Act in other Acts);(9) The Act concerning Disaster Benefits to whom Cooperated and Assisted in Duties of
Police Officers (Act No. 245, 1952);(10) The Act concerning Disaster Benefits to whom Cooperated and Assisted in Maritime
Safety Agents (Act No. 33, 1953);(11) The Act concerning Accident Compensation on Public Service by School Doctors,
School Dentists and School Pharmacists of Public Schools (Act No. 143, 1957);(12) The Act concerning Benefits for Damage Sustained by Witnesses, etc. (Act No. 109,
1958);

51

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT(13) The Government Employees’ Mutual Aid Society Act (Act No. 128, 1958; including
the cases where the provisions shall be applied mutatis mutandis to other Acts and it
follows the instances in other Acts);(14) The National Health Insurance Act (Act No. 192, 1958);(15) The Basic Act for Countermeasures against Disasters (Act No. 223, 1961);(16) The Local Government Employees’ Mutual Aid Society Act (Act No. 152, 1962);(17) The Rivers Act (Act No. 167, 1964);(18) The Local Government Employees’ Accident Compensation Act (Act No. 121,
1967);(19) The Act of Health and Medical Service System for the Aged (Act No. 80, 1982);(20) The Long-term Care Insurance Act (Act No.123, 1997); and(21) The Act Concerning Measures to Protect Citizens in the Case of Armed Attack, etc.
(Act No. 112, 2004).
(Entrustment of the Automobile Liability Compensation Business)
Article 22. The Government may entrust the insurance companies or the cooperatives,
pursuant to the provisions of Paragraph 1, Article 77 of the Act, with the receipt of theclaims for payment of indemnity for damages, investigation of the amount of damage to
be indemnified, payment of indemnity for damages and other business pursuant to theprovisions of Paragraph 1, Article 72 of the Act, except for decision of the amount of
indemnity for damages.
2. As an entrustment fee, the Government shall pay to the insurance companies or thecooperatives, with which the business was entrusted pursuant to the provisions of thepreceding paragraph, the amount which is to cover the appreciate cost incurred underefficient management.
3. The method of payment of the entrustment fee under the preceding paragraph and otherrules concerning the entrustment contract pursuant to the provisions of Paragraph 1 shallbe provided in Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.
(Delegation of authority)
Article 23. The authority as provided in the Cabinet Order under Paragraph 1, Article 84 of
the Act shall be the authority of the Prime Minister as stipulated in Article 35 of the Act.
2. The authority of the Minister of Land, Infrastructure, Transport and Tourism as stipulated
in Paragraph 4, Article 9-2 of the Act which shall be applied mutatis mutandis in
Paragraphs 1 and 4 of Article 10-2 of the Act shall be exercised by the Directors-Generalof District Transport Bureaus.
3. The authority of the Minister of Land, Infrastructure, Transport and Tourism as stipulated
in Paragraph 1 of Article 85 of the Act may be exercised by the Directors-General of theDistrict Transport Bureaus.
(Delegation to Ordinance of Ministry of Land, Infrastructure, Transport and Tourism)
Article 24. In addition to those provided in this Cabinet Order, the procedures and othermatters necessary for enforcement of the Act and this Cabinet Order shall be provided in
Ordinance of Ministry of Land, Infrastructure, Transport and Tourism.

52

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTSupplementary Provisions(Effective date)
1. This Cabinet Order shall take effect as from December 1, 1955. However, the provisionsof Paragraph 2 and Paragraph 3 of the Supplementary Provisions shall take effect as from
October 20, 1955 and the provisions of Article 11, Article 17 through Article 21 andArticle 23 shall take effect as from February 1, 1956.
(Grants of subsidies appropriated for premiums, etc.)
2. Subsidies appropriated for premiums, etc. pursuant to the provision of Article 7 of the
Supplementary Provisions to the Act shall be granted based on application by aninsurance company or cooperative.
(Payment or refund of premiums or contributions in the case of increased or decreased risk
when subsidies appropriated for premiums, etc. will be granted)
3. Notwithstanding the provisions of Article 10 (including the case where the provision shallbe applied mutatis mutandis in Article 12; the same shall be applied below in thisparagraph,) the amount of the premium or contribution that an insurance company orcooperative may claim for payment pursuant to the provisions of Paragraph 4, Article 22of the Act (including the case where the provision shall be applied mutatis mutandis inparagraph 1, Article 23-3 of the Act), or that a policyholder or policyholder of mutual aid
may claim for refund pursuant to the provisions of Paragraph 5, Article 22 of the Act(including the case where the provision shall be applied mutatis mutandis in Paragraph 1,
Article 23-3 of the Act) under contract for liability insurance or liability mutual aid that
becomes effective during the period of time from April 1, 2002 to March 31, 2008 shall be
as follows:(1) In the case where the risk increases: The amount determined by adding to the amountcalculated pursuant to the provisions of Article 10 an amount corresponding to thesubsidies appropriated for premiums, etc. allocated to part of the premium orcontribution for the contract prior to the increase in risk based on the provisions ofParagraph 7 of the Supplementary Provisions to the Act, and by subtracting theamount of subsidies appropriated for premiums, etc. that should be applied in thecase where the contract is formed after the increase in risk
(2) In the case where the risk decreases: The amount determined by subtracting from theamount calculated pursuant to the provisions of Article 10 an amount corresponding
to the subsidies appropriated for premiums, etc. allocated to part of the premium orcontribution for the contract prior to the decrease in risk based on the provisions ofParagraph 7 of the Supplementary Provisions to the Act, and by adding the amountof subsidies appropriated for premiums, etc. that should be applied in the case where
the contract is formed after the decrease in risk

53

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTSupplementary Provisions (Cabinet Order No. 315, October 15, 2004)(Effective date, etc.)
Article 1. This Cabinet Order shall take effect as from the date of promulgation, and theprovisions of the revised Order for Enforcement of the Automobile Liability Security Act(hereinafter referred to as “new Ordinance”) shall be applied to accidents resulting fromthe operation of an automobile that occur on and after July 1, 2004.
(Interim measures)
Article 2. With regard to application of the provisions of the Appendix 2 of the new
Ordinance concerning accidents resulting from the operation of an automobile that occur
on and after July 1, 2004 and until the date before this Cabinet Order becomes effective;
the words in item 6 of 7th Grade of the same List, “Loss of three digits including the
thumb,” shall be read as “Loss of the thumb and the index finger, loss of three digits
including the thumb or index finger”; in item 3 of 8th Grade, “Loss of two digits including
the thumb” as “Loss of the thumb and one finger other than the index finger,” “other than
the thumb” as “other than the thumb and the index finger”; in item 4 of the same Grade,“Loss of the use of three digits including the thumb,” as “Loss of the use of the thumb andthe index finger, loss of the use of three digits including the thumb or index finger”; initem 13 of 9th Grade of the same List, “Loss of the use of two digits including the thumb”
as “Loss of the use of the thumb and one finger other than the index finger,” “other than
the thumb” as “other than the thumb or index finger”; in item 7 of 10th Grade of the same
List, “Loss of the use of the thumb on one hand, or loss of the use of two digits” as “Lossof the index finger on one hand, or loss of the use of the thumb or two digits”; in item 8 of
11th Grade of the same List, “Loss of the index finger, the middle finger or the ring
finger” as “Loss of the middle finger or the ring finger on one hand, or loss of the use of
the index finger”; in item 10 of 12th Grade of the same List, “the index finger, the middle
finger” as “the middle finger”; in item 7 of 13th Grade of the same List, “the thumb ” as“the thumb or the index finger,” “on one hand” as “on one hand, or inability to bend andstretch the distal interphalangeal joint of the index finger on one hand”; in items 6 and 7of 14th Grade of the same List, “the thumb” shall be read as “the thumb or the index
finger.”
Supplementary Provisions (Cabinet Order No. 116, May 2, 2011)
This Cabinet Order shall take effect as from the day of enforcement, and the provisions in therevised Order for Enforcement of the Automobile Liability Security Act shall be applied to theaccidents caused by the operation of automobile on and after June 20, 2010.

54

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTAppendix List 1 (Related to Article 2)
Limit ofinsurance
1st grade(1) Severe disabilities in the functions of the nervous system or in ¥40,000,000
mentality, requiring nursing care at all times.
(2) Severe disabilities in the functions of the thorax and abdominalorgans, requiring nursing care at all times.
2nd grade (1) Severe disabilities in the functions of the nervous system or in ¥30,000,000
mentality, requiring nursing care as needed.
(2) Severe disabilities in the functions of the thorax and abdominalorgans, requiring nursing care as needed.
Note: Permanent disabilities, which do not fall under those stated in the Appendix List but
whose conditions are equivalent to those of the respective grades stated in the Appendix
List, shall be deemed to fall under the said grades.
Grade

Permanent disability requiring nursing care

Appendix List 2 (Related to Article 2)Grade
1st grade

Permanent disability

2nd grade

(1)
(2)
(3)
(4)
(5)
(6)
(1)

3rd grade

(2)
(3)
(4)
(1)
(2)
(3)

(4)

4th grade

(5)
(1)
(2)

Limit ofinsurance¥30,000,000

Loss of sight of both eyes.
Loss of functions of both mastication and speech.
Loss of both upper limbs upwards of the elbow joint.
Total loss of the functions of both upper limbs.
Loss of both lower limbs upwards of the knee joint.
Total loss of the functions of both lower limbs.
Loss of sight of one eye and partial loss of vision of the other eye ¥25,900,000
to 0.02 or less.
Partial loss of vision of both eyes to 0.02 or less.
Loss of both upper limbs upwards of the wrist joint.
Loss of both lower limbs upwards of the ankle joint.
Loss of sight of one eye and partial loss of vision of the other eye ¥22,190,000
to 0.06 or less.
Loss of the functions of either mastication or speech.
Severe disabilities in the functions of the nervous system or inmentality, causing inability to engage in work for the remainderof the victim’s life.
Severe disabilities in the functions of the thorax and abdominalorgans, causing inability to engage in work for the remainder ofthe victim’s life.
Loss of all digits on both hands.
Partial loss of vision of both eyes to 0.06 or less.
¥18,890,000
Severe disabilities in the functions of both mastication and

55

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACT

Grade

5th grade

Permanent disability
(3)
(4)
(5)
(6)
(7)
(1)
(2)

(3)

6th grade

(4)
(5)
(6)
(7)
(8)
(1)
(2)
(3)
(4)

(5)
(6)
(7)
(8)
7th grade

(1)
(2)

(3)

Limit ofinsurance

speech.
Total loss of hearing of both ears.
Loss of one upper limb upwards of the elbow joint.
Loss of one lower limb upwards of the knee joint.
Loss of the use of all digits on both hands.
Loss of both legs upwards of the Lisfranc’s joints.
Loss of sight of one eye and partial loss of vision of the other eye ¥15,740,000
to 0.1 or less.
Severe disabilities in the functions of the nervous system or inmentality, causing inability to engage in anything but very lightwork.
Severe disabilities in the functions of the thorax and abdominalorgans, causing inability to engage in anything but very lightwork.
Loss of one upper limb upwards of the wrist joint.
Loss of one lower limb upwards of the ankle joint.
Total loss of the use of one upper limb.
Total loss of the use of one lower limb.
Loss of all toes on both feet.
Partial loss of vision of both eyes to 0.1 or less.
¥12,960,000
Severe disabilities in the functions of either mastication or
speech.
Partial loss of hearing of both ears to such a degree of inability tohear a loud voice unless it is close to the ear.
Total loss of hearing of one ear and partial loss of hearing of theother ear to such a degree of inability to hear a normal speaking
voice at a distance of 40 centimeters or more.
Severe deformity or motor impediment of the spinal column.
Loss of the use of two of the three major joints in one upper limb.
Loss of the use of two of the three major joints in one lower limb.
Loss of five digits on one hand, or loss of four digits including the
thumb on one hand.
Loss of sight of one eye and partial loss of vision of the other eye ¥10,510,000
to 0.6 or less.
Partial loss of hearing of both ears to such a degree of inability tohear a normal speaking voice at a distance of 40 centimeters or
more.
Total loss of hearing of one ear and partial loss of hearing of theother ear to such a degree of inability to hear a normal speaking
voice at a distance of 1 meter or more.

56

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTGradePermanent disability(4)

8th grade

9th grade

Disabilities in the functions of the nervous system or in mentality,
causing inability to engage in anything but light work.
(5) Disabilities in the functions of the thorax and abdominal organs,causing inability to engage in anything but light work.
(6) Loss of three digits including the thumb on one hand, or loss offour digits other than the thumb on one hand.
(7) Loss of the use of five digits on one hand, or loss of the use offour digits including the thumb on one hand.
(8) Loss of one leg upwards of the Lisfranc’s joints.
(9) Pseudoarthrosis with a severe motor impediment of one upper
limb.
(10) Pseudoarthrosis with a severe motor impediment of one lower
limb.
(11) Loss of the use of all toes on both feet.
(12) Severe deformity of appearance.
(13) Loss of both testicles.
(1) Loss of sight of one eye or partial loss of vision of one eye to 0.02
or less.
(2) Motor impediment of the spinal column.
(3) Loss of two digits including the thumb on one hand, or loss of
three digits other than the thumb on one hand.
(4) Loss of the use of three digits including the thumb on one hand,or loss of the use of four digits other than the thumb on one hand.
(5) Shortening of one lower limb by five centimeters or more.
(6) Loss of the use of one of three major joints in one upper limb.
(7) Loss of the use of one of three major joints in one lower limb.
(8) Pseudoarthrosis in one upper limb.
(9) Pseudoarthrosis in one lower limb.
(10) Loss of all toes on one foot.
(1) Partial loss of vision of both eyes to 0.6 or less.
(2) Partial loss of vision of one eye to 0.06 or less.
(3) Hemianopsia, contraction of the visual field or distortion of thevisual field of both eyes.
(4) Severe loss of both eyelids.
(5) Loss of nose with severe disabilities in the functions thereof.
(6) Disabilities in the functions of both mastication and speech.
(7) Partial loss of hearing of both ears to such a degree of inability tohear a normal speaking voice at a distance of one meter or more.
(8) Partial loss of hearing of one ear to such a degree of inability tohear a loud voice unless it is close to the ear, and partial loss ofLimit ofinsurance

57¥8,190,000¥6,160,000

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTGradePermanent disability

hearing of the other ear to such a degree of difficulty to hear anormal speaking voice at a distance of one meter or more.
(9) Total loss of the hearing of one ear.
(10) Disabilities in the functions of the nervous system or in mentality,
causing inability to engage in anything but limited work to aconsiderable extent.
(11) Disabilities in the functions of the thorax and abdominal organs,causing inability to engage in anything but limited work to aconsiderable extent.
(12) Loss of the thumb on one hand, or loss of two digits other than
the thumb on one hand.
(13) Loss of the use of two digits including the thumb on one hand, orloss of the use of three digits other than the thumb on one hand.
(14) Loss of two or more toes on one foot including big toe.
(15) Loss of the use of all toes on one foot.
(16) Considerable deformity of appearance.
(17) Severe disabilities of the genital organs.
10th grade (1) Partial loss of vision of one eye to 0.1 or less.
(2) Diplopia in the case of looking forward.
(3) Disabilities in the functions of either mastication or speech.
(4) Dental prostheses on fourteen teeth or more.
(5) Partial loss of hearing of both ears to such a degree of difficulty tohear a normal speaking voice at a distance of one meter or more.
(6) Partial loss of hearing of one ear to such a degree of inability tohear a loud voice unless it is close to the ear.
(7) Loss of the use of the thumb on one hand, or loss of the use of
two digits other than the thumb on one hand.
(8) Shortening of one lower limb by three centimeters or more.
(9) Loss of the big toe on one foot, or loss of four toes other than the
big toe on one foot.
(10) Severe disabilities in the functions of one of three major joints of
one upper limb.
(11) Severe disabilities in the functions of one of three major joints of
one lower limb.
11th grade (1) Severe disabilities in focusing or motor impediments of both
eyeballs.
(2) Severe motor impediments of both eyelids.
(3) Severe residual loss of one eyelid.
(4) Dental prostheses on ten teeth or more.
(5) Partial loss of hearing of both ears to such a degree of inability to58

Limit ofinsurance¥4,610,000¥3,310,000

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTGradePermanent disability

hear a small voice at a distance of one meter or more.
(6) Partial loss of hearing of one ear to such a degree of inability tohear a normal speaking voice at a distance of forty centimeters or
more.
(7) Deformity of the spinal column.
(8) Loss of the index finger, the middle finger or the ring finger on
one hand(9) Loss of the use of two or more toes on one foot including big toe.
(10) Disabilities in the functions of the thorax and abdominal organs,causing significant impairment to work performance
12th grade (1) Severe disabilities in the function of focusing or motor
impediments of one eyeball.
(2) Severe motor impediments of one eyelid.
(3) Dental prostheses on seven teeth or more.
(4) Loss of major part of auricle of one ear.
(5) Severe deformity of the clavicle, sternum, ribs, scapula or pelvis.
(6) Disabilities in the functions of one of three major joints of one
upper limb.
(7) Disabilities in the functions of one of three major joints of one
lower limb.
(8) Deformity of a long pipe bone.
(9) Loss of the little finger on one hand.
(10) Loss of the use of the index finger, the middle finger or the ring
finger on one hand.
(11) Loss of the second toe on one foot, loss of two toes including thesecond toe on one foot, or loss of all of the third to fifth toes on
one foot.
(12) Loss of the use of the big toe on one foot, or loss of the use offour toes other than the big toe on one foot.
(13) Obstinate nervous symptoms in affected parts.
(14) Deformity of appearance.
13th grade (1) Partial loss of vision of one eye to 0.6 or less.
(2) Diplopia except in the case of looking forward.
(3) Hemianopsia, contraction of the visual field, or distortion of thevisual field of one eye.
(4) Loss of parts of eyelids or residual baldness of eyelashes of botheyes.
(5) Dental prostheses on five teeth or more.
(6) Loss of the use of the little finger on one hand.
(7) Loss of part of the bones of the thumb on one hand.

59

Limit ofinsurance¥2,240,000¥1,390,000

ORDER FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY ACTGradePermanent disability(8) Shortening of one lower limb by one centimeter or more.
(9) Loss of one or two of the third to fifth toes on one foot.
(10) Loss of the use of the second toe on one foot, loss of the use of
two toes including the second toe on one foot, or loss of the useof all of the third to fifth toes on one foot.
(11) Disabilities in the functions of the thorax and abdominal organs.
14th grade (1) Loss of a part of one eyelid, or residual baldness of eyelashes of
one eye.
(2) Dental prostheses on three teeth or more.
(3) Partial loss of hearing of one ear to such a degree of inability tohear a small voice at a distance of one meter or more.
(4) Palm-size ugly scar on the exposed part of one upper limb.
(5) Palm-size ugly scar on the exposed part of one lower limb.
(6) Loss of part of the bones of digit other than the thumb on one
hand.
(7) Inability to bend and stretch the distal interphalangeal joint ofdigit other than the thumb on one hand.
(8) Loss of the use of one or two of the third to fifth toes on one foot.
(9) Nervous symptoms in affected parts.

Limit ofinsurance¥750,000

Remarks:(1) The measure of vision shall be made according to the international sight-testing chart.
In the case of ametropia, such measure shall be made with respect to corrected vision.
(2) Loss of the thumb, a finger or a digit shall mean loss of, as to the thumb, the part
upwards of the interphalangeal joint, and as to a finger, the parts upwards of theproximal interphalangeal joint.
(3) Loss of the use of the thumb, a finger or a digit shall mean loss of a half or more of the
distal phalanx of the thumb and a finger, or severe motor impediments in themetacarpophalangeal joint or the proximal interphalangeal joint (as to the thumb, theinterphalangeal joint).
(4) Loss of a toe shall mean loss of whole part thereof.
(5) Loss of the use of a toe shall mean loss of the use of, as to the big toe, a half or more of
the distal phalanx, and as to a toe other than the big toe, the distal interphalangeal joint or
upwards, or severe motor impediments in the metatarsophalangeal joint or the proximal
interphalangeal joint (as to the big toe, the interphalangeal joint).
(6) Permanent disabilities, which do not fall under those stated in the Appendix List but
whose conditions are equivalent to those of the respective grades stated in the Appendix
List, shall be deemed to fall under the said grades.

60

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITYACT

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY
SECURITY ACT(Ordinance of the Ministry of Transport No. 66, December 1, 1955)
History of Amendment
No. 1, January 13, 1956
No. 27, May 21, 1956
No. 19, May 25, 1960
No. 39, July 14, 1962
No. 55, September 29, 1962
No. 50, October 1, 1963
No. 2, February 1, 1964
No. 65, September 5, 1964
No. 46, July 30, 1966
No. 59, December 26, 1969
No. 10, February 20, 1970
No. 81, September 18, 1970
No. 92, December 17, 1970
No. 32, May 13, 1972
No. 57, September 29, 1972
No. 33, September 28, 1973
No. 37, October 30, 1973
No. 44, November 27, 1973
No. 58, December 22, 1973
No. 53, December 26, 1974
No. 22, June 27, 1975
No. 44, October, 30, 1975
No. 1, January 19, 1977
No. 36, June 27, 1978
No. 8, March 15, 1983
No. 18, June 22, 1984
No. 5, February 5, 1985
No. 12, April 11, 1988
No. 24, July 20, 1989
No. 15, May 24, 1991
No. 25, July 29, 1993
No. 48, November 1, 1994
No. 7, February 27, 1995
No. 50, September 13, 1996
No. 61, November 25, 1996

No. 39, November 29, 2000
Ordinance of the Ministry of Land,
Infrastructure, Transport and Tourism
No. 149, December 21, 2001
No. 79, June 28, 2002
No. 83, August 17, 2004
No. 57, May 20, 2005
No. 104, November 2, 2005
No. 24, March 30, 2007
No. 76, September 1, 2008
No. 6, March 29, 2010
No. 63, December 28, 2010

61

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT(Certificate of automobile liability insurance)
Article 1. The form of a certificate of automobile liability insurance under paragraph 1,
Article 7 of the Automobile Liability Security Act (Act No. 97, 1955; hereinafter referred
to as “Act”) shall be in accordance with Form No. 1.
(Method of preparing a copy of the certificate of automobile liability insurance)
Article 1-2. The method as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism under the proviso of paragraph 1, Article 9 of the Act shall be as
follows:(1) to copy the certificate of automobile liability insurance (including the certificate ofautomobile liability mutual aid; hereinafter the same shall be applied in this Article),using a copy machine;(2) to prepare a copy, on the paper in the same form as that of the certificate ofautomobile liability insurance, by the same handwriting as that for preparation ofsuch certificate of automobile liability insurance, using a copy paper.
(3) for the person who has issued the certificate of automobile liability insurance or who
has been presented pursuant to the provision of paragraph 6, Article 9 of the Act totransfer the matters described in such certificate of automobile liability insurance tothe paper in the same form as that of such certificate of automobile liability
insurance, and sign and seal thereon.
(Electromagnetic method)
Article 1-3. The method as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism under paragraph 2, Article 9 of the Act shall be one of the methods
cited below.
(1) The method of using an electronic information processing system to connect acomputer used by the sender to a computer used by the receiver via
telecommunications lines, whereby information is transmitted via said
telecommunications lines and recorded in a file installed in a computer used by thereceiver.
(2) The method of issuing information recorded on a file prepared using a magnetic diskor other equivalent medium whereby certain information may be recorded reliably.
(Referrals to registered information processing organizations)
Article 1-4. The referral cited in paragraph 4, Article 9 of the Act shall be made using anelectromagnetic method, with regard to matters to be described on certificates ofautomobile liability insurance provided to a registered information processing organization
pursuant to paragraph 2 of said Article.
2. On receiving the referral cited in the preceding paragraph, the registered information
processing organization must use an electromagnetic method to notify said administrative
agency concerning matters pertaining to said inquiry.
(Insurance sticker)
Article 1-5. The insurance sticker under paragraph 1, Article 9-2 of the Act shall be in62

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
accordance with Form No. 1-2.
2. The expiration date of the insurance period under paragraph 2, Article 9-2 of the Act shallbe shown using the year and the month.
3. The insurance sticker shall be displayed by being stuck legibly from forward on the outerside of the windshield glass of the light automobile which is not subject to inspection(meaning light automobile which is not subject to inspection under paragraph 1, Article 58of the Road Transport Vehicle Act (Act No. 185, 1951; hereinafter the same shall beapplied)), motorcycle (meaning motor driven cycle under paragraph 3, Article 2 of theRoad Transport Vehicle Act; hereinafter the same shall be applied) or automobile
registered in the contracting state (meaning automobile registered in the contracting state
under paragraph 1, Article 9-2 of the Act; hereinafter the same shall be applied). However,
the insurance sticker shall be displayed by being stuck legibly respectively; in the case of
the light automobile not subject to inspection which has no driver’s room or thewindshield glass and the light automobile not subject to inspection which is put into
operation with a temporary operation number plate borrowed pursuant to the provision ofparagraph 3, Article 63-2 of the Ordinance for Enforcement of the Road Transport Vehicle
Act (the Ordinance of Ministry of Transport No. 74, 1951), on the left upper part of thevehicle number plate fixed on the rear of the vehicle; in the case of the motorcycle which
has no driver’s room or the wind shield glass, on the identification plate (meaning theidentification plate as stipulated in paragraph 3, Article 446 (including the case where theprovisions shall be applied mutatis mutandis in paragraph 2, Article 1 of the Act) of the
Local Tax Act (Act No. 226, 1950); hereinafter the same shall be applied) (or on the frontof the motorcycle in the case where there exists no identification plate or it is difficult tostick it on the identification plate); in the case of an automobile registered in thecontracting state which has no driver’s room or the windshield glass, on the rear of theautomobile registered in the contracting state.
Article 1-6. A person who requests reissue of the insurance sticker pursuant to the provisionof paragraph 4, Article 9-2 of the Act shall present the certificate of automobile liability
insurance to the insurance company.
2. The cases as provided in the Ordinance of Ministry of Land, Infrastructure, Transport andTourism under paragraph 4, Article 9-2 of the Act shall be as follows:(1) in the case where the windshield glass on which the insurance sticker is stuck has
become unusable due to loss or damage;(2) in the case where it has become unable to indicate the vehicle number plate or theindication plate on which the insurance sticker was stuck due to loss, damage or
difficulty in identifying them; or(3) in the case where it is regarded that there is any other due reason for receipt of thereissue.
(Entrustment to insurance companies)
Article 1-7. The entrustment to insurance companies cited in Article 1 of Order for
Enforcement of the Automobile Liability Security Act (Cabinet Order No. 286 of 1955;

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ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
hereinafter “the Order”) may be made by using an electronic information processing
system prescribed in paragraph 1, Article 3 of the Act Concerning Utilization ofInformation Communication Technology in Administrative Procedures and Other
Procedures (Act No. 151 of 2002) pursuant to the provisions of said paragraph, limited tocases in which the person making said entrustment is to make the application cited in
Article 7 paragraph 1 of the Road Transport Vehicle Act for a motor vehicle that has notbeen registered.
(Description of basis for calculation of the amount claimed)
Article 2. The description of basis for calculation under item (6), paragraph 1, Article 3 of theOrder, shall be made by specifying the particulars related to claim of medical fee, thecontents and the grounds of the amount of damage.
(Damage which should be reported regarding payment, etc.)
Article 3. The damage as provided in the Order of Ministry of Land, Infrastructure, Transport
and Tourism under Article 16-6 of the Act shall be damage which comes under subitem (a),item (1), paragraph 1, Article 2 of the Order, damage which comes under subitem (a), item
(2) of the same paragraph, damage which comes under subitem (b) through subitem (e) of
item (3) of the same paragraph, damage which comes under subitem (f), item (3) of thesame paragraph and the 1st grade through 3rd grade of Appendix 1 of the Order, damage
which comes under paragraph 2 of the same Article, and damage which comes under Note
1 of Appendix 1 of the Order or Note 6 of Appendix 2 of the Order.
(Matters for filing)
Article 3-2. If an insurance company decides to file pursuant to the provisions of Article 16-6of the Act, it shall submit to the Minister of Land, Infrastructure, Transport and Tourism afiling describing the matters as set forth below:(1) Details of the circumstances of the accident;(2) The names, ages and addresses of the insured, wrongdoer and victim, and all othermaterial facts related to the insured, wrongdoer and victim;(3) The amount of payment for each damage as set forth in paragraph 1, Article 2 of theOrder;(4) Specific details of the expenses incurred for payment due to the accident, profit lost
due to the accident, pain and suffering and other damages, and the details of thecalculations for each reported item;(5) In the case of permanent disabilities, the grade comes to fall and the details of thereason for determining such grade;(6) In the case of reducing the amount of damage for an insurance claim payment, etc.,
the percentage of the reduction and the details of the reasons for such determination;(7) In the case where the insurance company has determined that the insured is not liable
to compensate for damage, the details of the reason for such determination;(8) In the case where the insurance company has determined that damage did not result
due to an accident, the details of the reason for such determination; and64

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT(9) In the case where the insurance company has determined that it is to be exemptedfrom liability to indemnify for damage based on the provisions of Article 14 of theAct, the details of the reasons for such determination.
(Emergency automobile)
Article 4. Automobile as provided in the Order of Ministry of Land, Infrastructure, Transport
and Tourism under item (15), Article 9 of the Order shall be police automobile equippedwith the warning light and the siren as stipulated in paragraph 1, Article 49 of the Safety
Regulations of Road Transportation Vehicles (the Order of Ministry of Transport No. 67,
1951).
(Vehicle number plate as provided in the Order of Ministry of Land, Infrastructure, Transport
and Tourism under item (16), Article 9 of the Order)
Article 4-2. The vehicle number plate as provided in the Ordinance of Ministry of Land,
Infrastructure, Transport and Tourism under item (16), Article 9 of the Order shall be thetemporary operation number plate borrowed as the vehicle number plate pursuant to theprovision of proviso of paragraph 3, Article 63-2 of the Order for Enforcement of theRoad Transport Vehicle Act.
(Specific automobile)
Article 5. Automobiles as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism under item (17), Article 9 of the Order shall be as follows:(1) Automobile for medical treatment and epidemics prevention;(2) Automobile for machining work;(3) Wiring repair automobile;(4) Crane automobile;(5) Mail service automonile;(6) Sanitation automobile;(7) Automobile with sleeping facilities;(8) Concrete-mixer automobile;(9) Radio communication automobile;(10) Library automobile;(11) Kitchen automobile;(12) Automobile for training drivers (meaning motor vehicle for the use of the designateddriving school under paragraph 1 of Article 98 of the Road Traffic Act (Act No. 105,1960) exclusively for training driving techniques); and(13) Other automobiles that are similar to those as set forth in each of the preceding items
in terms of structures, devices and uses.
(Requirements for cancellation of contracts of the liability insurance)
Article 5-2. The policyholder may cancel contract of the liability insurance in the cases:(1) where, in respect to the registered automobile, the policyholder has received thepermanent deletion registration pursuant to the provision of paragraph 1, Article 15of the Road Transport Vehicle Act, or a notice of the permanent deletion registration

65

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
pursuant to the provision of paragraph 5 of the same Article (limited to the cases
coming under the reasons as set forth in item(2), paragraph 1 of the same Article),
where he/she has received the tentative deletion registration for export pursuant to
the provision of paragraph 2, Article 15-2 of the same Act, or where he/she hasreceived the temporary deletion registration pursuant to the provision of paragraph 2,
Article 16 of the same Act;(2) where, in respect of the light automobile or small-sized motor vehicle with twowheels, the use thereof has been terminated and the vehicle number plate has been
submitted to the Director-General of the Transport Supervision Department, theChief of a Transport Branch Office or the Light Motor Vehicle Inspection
Organization;(3) where, in respect of small-size special purpose automobile or motorcycle, the use
thereof has been terminated (in the case where it is provided in the Ordinance of a
special ward, city, town or village that small-size special purpose automobile or
motorcycle shall be posted the indication plate issued by such special ward, city,
town or village, limited to the case that such indication plate has been submitted tothe head of the special ward, city, town or village);(4) where, in respect of automobile which have been issued the registration certificate(meaning the registration certificate under paragraph 1, Article 5 of the Act
concerning Special Treatments, etc. to the Road Transport Vehicle Act regarding the
Enforcement of the Convention on Road Traffic (Act No. 109, 1964; hereinafterreferred to as “Special Treatments Act”); hereinafter the same shall be applied), theexport permission thereof under Article 67 of the Customs Act (Act No. 61, 1954)
has been obtained for the use thereof in any of the contracting states under paragraph
2, Article 2 of the Special Treatments Act;(5) where, in respect of automobile registered in the contracting state, the export
permission thereof under Article 67 of the Customs Act has been obtained;(6) where, in respect of motor vehicle put into operation with the permission for
temporary operation under paragraph 1, Article 34 of the Road Transport Vehicle
Act (including the case where the provisions shall be applied mutatis mutandis inparagraph 2, Article 73 of the same Act), the temporary operation permission number
plate has been returned to the competent administrative agencies;.
(6-2) where, in respect of motor vehicle put into operation with the permission underparagraph 1, Article 36-2 of the Road Transport Vehicle Act (including the casewhere the provisions shall be applied mutatis mutandis in paragraph 2, Article 73 of
the same Act), the forwarding operation permission number plate has been returnedto the Director-General of the Transport Supervision Department or the Chief of aTransport Branch Office; or(7) where, in respect of light automobile not subject to inspection which is put into
operation with the temporary operation number plate borrowed pursuant to theprovision of paragraph 3 of Article 63-2 of the Enforcement Regulations of the Road
Transport Vehicle Act, the temporary driving number plate has been returned to the66

ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
Director-General of the Transport Supervision Department or the Chief of aTransport Branch Office.
(On-the-spot inspections)
Article 6. The proof of identity in paragraph 2, Article 23-2 (including the case where theprovisions shall be applied mutatis mutandis in paragraph 1, Article 23-3) shall be inaccordance with Form No. 2.
(Time period as provided in the Minister of Land, Infrastructure, Transport and Tourism
Ordinance under item (4), Article 11 of the Order)
Article 7. The time period as provided in the Ordinance of Ministry of Land, Infrastructure,
Transport and Tourism under item (4), Article 11 of the Order shall be as follows:(1) with regard to automobile under paragraph 1, Article 58 of the Road Transport
Vehicle Act (excluding automobile under item (3) hereof), the time period
determined by adding one month to the effective period of motor vehicle inspection
certificate pursuant to the provisions of the same Act;(2) with regard to small-size special purpose automobile under item (14-2), Article 9 of
the Ordinance, light automobile which is not subject to inspection or motorcycle, thetime period determined by adding one month to the insurance period or mutual aid
period of the liability insurance contract or liability mutual aid contract that will beconcluded; and(3) with regard to automobile for sale under item (16), Article 9 of the Ordinance, one
year.
(Application mutatis mutandis in the provisions concerning liability insurance)
Article 8. The provisions of Article 1, Article 1-5 through Article 3-2 and Article 5-2 shall beapplied mutatis mutandis to liability mutual aid.
Article 9 through Article 26. Deleted.
(Claim for indemnity for damage to the Government)
Article 27. The claim for indemnity for damage under paragraph 1, Article 72 of the Act shallbe made in writing describing the following matters:(1) Name and address of the claimant;(2) In the case of a claim in respect of a dead person, the personal relations between theclaimant and the dead;(3) Name and address of the victim, and the date, time and location of which an injurious
act took place;(4) In the case of a claim pursuant to the provisions of the second sentence of paragraph
1, Article 72 of the Act, the name and address of the wrongdoer;(5) Reasons for being able to make a claim for indemnity for damage to the Government
pursuant to the provision of paragraph 1, Article 72 of the Act;
(6) The automobile registration number or the vehicle number, and in the case of theindication plate number or the registration number pursuant to the provisions of the67ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
Convention on Road Traffic (in the case where there is no such number, the chassis
number) of the automobile concerned is known, such number;(7) In the case where any benefit corresponding to indemnity for damage pursuant to theprovision of paragraph 1, Article 72 of the Act shall be received in accordance withother Acts and regulations, the basis of such benefit and the amount thereof; and(8) The amount claimed and the basis of calculation thereof (the particulars related to theclaim for medical fee, the contents of the amount of damage and basis therefor shallbe specified).
2. The written statement in the preceding paragraph shall be attached by the following
documents:(1) Medical certificate or coroner’s certificate;(2) A written statement sufficient to prove the matters under item (2) to item (5) anditem (7) of the preceding paragraph; and(3) A written statements sufficient to prove the basis for calculation under item (8) of thepreceding paragraph.
3. The Minister of Land, Infrastructure, Transport and Tourism may, if he/she deems it
necessary, request the person who made a claim for indemnity for damage underparagraph 1, Article 72 of the Act to submit a medical certificate of a doctor designated by
the Minister of Land, Infrastructure, Transport and Tourism. In this case, any necessary
expenses shall be borne by the Government.
(Claim for reparation to the Government)
Article 28. The claim for reparation to the Government under the provisions of paragraph 4,
Article 16 or paragraph 4, Article 17 of the Act (including the case where these provisions
shall be applied mutatis mutandis in paragraph 1, Article 23-3 of the Act) shall be made inwriting describing the following matters:(1) Name and address of the claimant;(2) Names and addresses of the wrongdoer and the victim, and date, time and place of
which the injurious act took place;(3) Reasons for being able to make a claim for reparation to the Government pursuant to
the provisions of paragraph 4, Article 16 or paragraph 4, Article 17 of the Act(including the case where these provisions shall be applied mutatis mutandis inparagraph 1, Article 23-3 of the Act);(4) The vehicle registration number or the vehicle number, the indication plate number
or the registration number pursuant to the provisions of the Convention on Road
Traffic (the chassis number, in the case where there is no such number) of theautomobile concerned;(5) Names and addresses of the policyholder or the policyholder of mutual aid; and(6) The amount claimed and the basis for calculation thereof (the particulars related tothe claim for medical fee, the contents of the amount of damage and basis thereforshall be specified).
2. The written statement in the preceding paragraph shall be attached by the following

68ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
documents:(1) A written statement sufficient to prove the matters in item (2) and item (3) of thepreceding paragraph; and(2) A written statement sufficient to prove the basis for calculation in item (6) of thepreceding paragraph.
(Payment, etc. of the Automobile Liability Compensation Business Contribution)
Article 29. The payment of Automobile Liability Compensation Business Contribution shallbe made monthly in a lump.
2. The insurance company and the cooperative shall, if there arises any cause for payment of
the Automobile Liability Compensation Business Contribution, submit a filing to that
effect to the Minister of Land, Infrastructure, Transport and Tourism without delay.
(Letter of pressing)
Article 30. The letter of pressing under paragraph 2, Article 80 of the Act shall be inaccordance with Form No. 3.
(Voucher showing the status of official who attaches property)
Article 31. The voucher which the official executing disposition pursuant to the provisions ofparagraph 4, Article 80 of the Act carries with him/her to show his/her official status in
conformity with the instance of disposition for failure to pay the national taxes shall be inaccordance with Form No. 4.
(On-the-spot inspections)
Article 31-2. The proof of identity under paragraph 2, Article 23-2 of the Act applied mutatis
mutandis in paragraph 2, Article 82-2 of the Act shall be in accordance with Form 5.
(Matters to be observed by the insurance company or the cooperative)
Article 31-3. The matters to be observed by the insurance company or the cooperative forsecuring proper issue of the insurance stickers or the mutual aid stickers under paragraph
4, Article 84-2 of the Act shall be as follows:(1) Not to issue or reissue the insurance sticker or the mutual aid sticker showing
different year and month from the year and month to which the expiration date of theinsurance period or the mutual aid period of the contract of the liability insurance
concerned or the contract of the liability mutual aid concerned; and(2) In the case where the commencement date of the insurance period or the mutual aid
period of the contract of the liability insurance concerned or the contract of theliability mutual aid concerned is fixed to be on and after the day following the date ofconclusion of such contract, to issue the insurance sticker or the mutual aid sticker
shall be issued within one month prior to the commencement date of the period ofsuch contract.
(Voucher showing the status of official who requests to present the certificate of automobile
liability insurance, etc.)
Article 32. The certificate showing the status under paragraph 2, Article 85 of the Act shall be

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ORDINANCE FOR ENFORCEMENT OF THE AUTOMOBILE LIABILITY SECURITY
ACT
in accordance with Form No. 6.
Supplementary Provisions [Extract](Effective date)
1. This Ministerial Ordinance shall take effect as from the date of enforcement.
(Interim measures concerning certificate, etc. of automobile liability insurance)
2. With respect to the certificate of automobile liability insurance that an automobile liability
insurance company should issue to a policyholder in respect of liability insurance
contracts that become effective during the period of time from April 1, 2002 to March 31,
2008, the insurance company shall indicate in the margin of the certificate of automobile
liability insurance using Form 1 as the word “premium” is changed to “amount deducted
the subsidies appropriated for premiums etc. from premium” with respect to liability
insurance policies that become effective during the period of time from April 1, 2002 to
March 1, 2008.”
3. The provisions of the preceding paragraph shall be applied mutatis mutandis to liability
mutual aid. In this case, in the preceding paragraph, the words “liability insurance” shallbe read as “liability mutual aid,” “insurance company” as “cooperative,” “policyholder” as“policyholder of mutual aid,” and “premium” as “contribution.”
Supplementary Provisions (Ordinance of Ministry of Land, Infrastructure, Transport
and Tourism No. 63, December 28, 2010) [Extract](Effective date)
Article 1. Out of the provisions in this Ministerial Ordinance, those revising paragraph 3,
Article 1-5 shall take effect as from the date of enforcement; those revising Form No.1-2
shall take effect as from April 1, 2011, respectively.
(Interim measure)
Article 2. Notwithstanding the Form after revision pursuant to this Ministerial Ordinance, theinsurance sticker which is in use at the time of the enforcement of this Ministerial
Ordinance and is pursuant to the Form 1-2 of the Ordinance for Enforcement of The
Automobile Liability Security Act before revision pursuant to this Ministerial Ordinancemay still be used for the time being.
Form No. 1 (Article 1 related) (Omitted)
Form No. 1-2 (Article 1-3 related) (Omitted)
Form No. 2 (Article 6 related) (Omitted)
Form No. 3 (Article 30 related) (Omitted)
Form No. 4 (Article 31 related) (Omitted)
Form No. 5 (Article 31-2 related) (Omitted)
Form No. 6 (Article 32) (Omitted)

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STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC. UNDER
AUTOMOBILE LIABILITY INSURANCE, AND PAYMENT OF MUTUALAID CLAIM, ETC. UNDER AUTOMOBILE LIABILITY MUTUAL AID(Notification of the Financial Services Agency and the Ministry of Land, Infrastructure,
Transport and Tourism No. 1, December, 21, 2001)
History of Amendment
No.1, March 8, 2010
Article 1. General Provisions
1.

2.

Insurance claim payment, etc. under automobile liability insurance shall be made inaccordance with these standards, up to the limits as provided for in Article 2 andAppendix 1 and 2 of the Order for Enforcement of the Automobile Liability Security Act(Cabinet Order No. 286 of 1955).
The limit of insurance claim for each person who has died or suffered bodily injury shallbe as provided for in Article 2 and Appendix 1 and 2 of the Order for Enforcement of theAutomobile Liability Security Act. However, in the case of insurance claim payment, etc.
for an accident involving more than one automobile, the limit of insurance claim shall be
the sum of the limit of insurance claim of the respective insurance policies.

Article 2. Damages for Bodily Injury
Damages for bodily injury shall include direct damage (expenses related to medical treatment,
documentation fees, and other expenses), loss of earnings due to absence from work, anddamages for pain and suffering.
1. Direct damage(1) Expenses related to medical treatmenti) First aid treatment expenses
Necessary and reasonable actual expenses directly incurred for first aid
treatment.
ii) Examination fees
Necessary and reasonable actual expenses incurred for initial examination,
follow-up examination and home visits.
iii) Hospital fees
Necessary and reasonable actual expenses incurred for hospitalization in an
ordinary room within the same locality. However, in the case where a doctor,
having regard to the degree of bodily injury suffered by the victim, etc., judges
it necessary, hospital fees shall be the necessary and reasonable actual expenses
incurred for hospitalization in a room other than that set forth above.
iv) Medication fees, surgery fees, treatment fees, etc.
Necessary and reasonable actual expenses incurred for medical treatment.

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STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

v)

Transportation expenses for outpatient’s hospital visits, hospital transfers,
hospitalization or discharge from hospital
Necessary and reasonable actual expenses incurred as transportation expenses
for outpatient’s hospital visits, hospital transfers, hospitalization or discharge
from hospital.
vi) Nursing care feesa. Nursing care fees while in hospital
4,100 yen per day in the case where the next of kin, etc. accompanies achild under 12 years of age.
b. Home nursing care fees or outpatient nursing care fees
In the case where a doctor judges that nursing care is necessary, homenursing care fees or outpatient nursing care fees shall be as set forth below.
However, a doctor’s certificate shall not be required in the case where thenext of kin, etc. accompanies a child under 12 years of age on outpatient
visits to hospital, etc.
(a) Persons introduced by private employment agencies licensed by the
Minister of Health, Labour and Welfare
Necessary and reasonable actual expenses supported by documentary
evidence, etc.
(b) Next of kin, etc.
2,050 yen per day.
c. In the case where the next of kin, etc. suffers loss of earnings due toabsence from work, said loss of earnings being supported by documentary
evidence etc., and the loss exceeds the amounts in 1 (vi) a. or 1 (vi) b. (b)above, nursing care fees shall be the necessary and reasonable actual
expenses incurred.
vii) Miscellaneous expenses
Miscellaneous expenses shall include the expense of purchasing, or fees forusing, items directly required for recuperation, the expense of purchasing
nutritional substances consumed under instruction by a doctor, andcommunication expenses, etc., and shall be as provided for below.
a. Miscellaneous expenses while in hospital
1,100 yen per day of hospitalization. In the case where these expenses,
supported by documentary evidence etc., exceed 1,100 yen per day,miscellaneous expenses shall be the necessary and reasonable actual
expenses incurred.
b. Miscellaneous expenses during outpatient treatment and home recuperation
Necessary and reasonable actual expenses incurred.
viii) Fee for judo therapy, etc.
Necessary and reasonable actual expenses incurred for the services of a licensed
judo therapist, osteopath, masseur, acupressurist, acupuncturist, or practitionerof moxibustion.

72

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

ix) Expenses for artificial limbs, etc.
a. Necessary and reasonable actual expenses incurred for prostheses etc.,
including artificial limbs, dental prostheses, ocular prostheses, spectacles(including contact lenses), hearing aids, crutches, etc., judged necessary bya doctor to complement physical functions as a result of the bodily injuries
suffered.
b. Necessary and reasonable actual expenses incurred in the case where aperson who had been using prosthesis as set forth above needs to repair or
replace said prosthesis because of the bodily injury.
c. The maximum amount for the expense for spectacles (including contactlenses) as set forth in a. and b. above shall be 50,000 yen.
x) Expenses for medical certificates, etc.
Necessary and reasonable actual expenses incurred for the issuance of medical
certificates, statements of medical fees, etc.
(2) Documentation fees
Necessary and reasonable actual expenses incurred for the issuance of traffic accident
report, certificates of victim’s seal-impression, resident’s cards, etc.
(3) Other expenses
Necessary and reasonable actual expenses (other than (1) Expenses related to medical
treatment and (2) Documentation fees as set forth above) including expenses needed
to transport the victim from the accident scene to a medical institution.
2. Loss of earnings due to absence from work
(1) In principle, loss of earnings due to absence from work shall be 5,700 yen per day inthe case where earnings have decreased due to the absence from work or in the casewhere a paid holiday has been used. In the case of a homemaker, earnings shall beassumed to have decreased.
(2) The number of days of loss of earnings due to absence from work shall be based on
the actual days of absence from work, and shall not exceed the period of treatment,
having regards to the degree of bodily injury suffered by the victim, the actual daysof treatment, etc.
(3) In the case where the amount of loss of earnings, as supported by documentary
evidence, etc., exceeds 5,700 yen per day, it shall be the actual amount incurred, up
to the limit as provided for in Article 3-2 of the Order for Enforcement of theAutomobile Liability Security Act.
3. Damages for pain and suffering(1) Damages for pain and suffering shall be 4,200 yen per day.
(2) The number of days for which said damages shall be paid shall not exceed the periodof treatment, taking into account the degree of bodily injury suffered by the victim,
the actual days of treatment, etc.
(3) In the case where a pregnant woman suffers stillbirth or miscarriage, damages shallbe payable in addition to those amounts set forth above.

73

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Article 3. Damages for Permanent Disability
Damages for permanent disability shall include loss of future earnings and damages forpain and suffering, etc., and shall be payable in cases coming under a grade as provided
for in Article 2 and Appendix 1 and 2 of the Order for Enforcement of the Automobile
Liability Security Act.
In principle, the grade shall be determined in accordance with the standards fordetermining the grade of disability under the workmen’s accident compensation
insurance.
1. Loss of future earnings
Loss of future earnings shall be calculated by multiplying the amount of annual earnings
or annual equivalent amount, as set forth in the following subparagraphs, by the working
ability loss ratio for the grade comes to fall (Appendix I) and the Leibnitz coefficient for
the number of years for which earnings can be expected from the age at which thepermanent disability was confirmed (Appendix II-1). However, this shall not apply incases where the probability is that the annual equivalent of the all-age average wage
(Appendix III) could not be obtained throughout the victim’s life.
(1) Persons in employment
The amount of earnings in the one year prior to the accident, or the annual equivalentamount of the average wage by age (Appendix IV) corresponding to the age at which
the permanent disability was confirmed, whichever is higher, shall be deemed as theamount of earnings. However, in the case of following persons, the amounts as set
forth below shall be deemed as the amount of earnings of the respective person
concerned.
i) Persons under 35 years of age whose earnings in the one year prior to theaccident can be proved
Whichever is the higher of the amount of earnings in the one year prior to theaccident; the annual equivalent amount of the all-age average wage or theannual equivalent amount of the average wage by age.
ii) Persons whose earnings in the one year prior to the accident is difficult to provea. Persons under 35 years of age
Whichever is the higher of the annual equivalent amount of the all-age
average wage or the annual equivalent amount of the average wage by age.
b. Persons of 35 years of age or older
The annual equivalent amount of the average wage by age.
iii) Persons who have been unemployed for less than one year (excluding those who
retired at the mandatory retirement age, etc.)
The standards as set forth above shall apply. In such cases the “amount of
earnings in the one year prior to the accident” shall be read as the “amount of
earnings in the one year prior to retirement”.
(2) Infants, children, pupils, students, homemakers

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STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

The annual equivalent amount of the all-age average wage shall be deemed as theamount of earnings. However, in the case where the average wage by age of a personof 58 years of age or older is less than the all-age average wage, the annual
equivalent amount of the average wage by age shall be deemed as the amount of
earnings.
(3) Other persons who have the will and ability to work
The annual equivalent amount of the average wage by age shall be deemed as theamount of earnings. However, the annual equivalent amount of the all-age average
wage shall be the maximum limit.
2. Damages for pain and suffering, etc.
(1) The amount of damages for pain and suffering, etc., for permanent disability shall be
the amount as set forth in the tables below in accordance with the grade of disability.
i) Cases in Appendix 1 of the Order for Enforcement of the Automobile Liability
Security Act
1st Grade
16,000,000 yen
ii)

Cases in Appendix 2 of the Order for Enforcement of the Automobile Liability
Security Act
1st Grade
11,000,000 yen
5th Grade
5,990,000 yen
9th Grade
2,450,000 yen
13th Grade570,000 yen(2)

2nd Grade
11,630,000 yen

2nd Grade
9,580,000 yen
6th Grade
4,980,000 yen
10th Grade
1,870,000 yen
14th Grade320,000 yeni)

3rd Grade
8,290,000 yen
7th Grade
4,090,000 yen
11th Grade1,350,000 yen

4th Grade
7,120,000 yen
8th Grade
3,240,000 yen
12th Grade930,000 yen

If a person coming under Appendix 1 of the Order for Enforcement of theAutomobile Liability Security Act has a dependent or dependents, the amount forthe 1st Grade shall be 18,000,000 yen and the amount for the 2nd Grade shall be
13,330,000 yen.
ii) If a person coming under the 1st, 2nd or 3rd Grade in Appendix 2 of the Order for
Enforcement of the Automobile Liability Security Act has a dependent or
dependents, the amount for the 1st Grade shall be 13,000,000 yen, the amount forthe 2nd Grade shall be 11,280,000 yen, and the amount for the 3rd Grade shall be
9,730,000 yen.
(3) In the case of a person coming under Appendix 1 of the Order for Enforcement of theAutomobile Liability Security Act, the amount of 5,000,000 yen for the 1st Grade and2,050,000 yen for the 2nd Grade shall be added as initial costs, etc.
Article 4. Damages for Death

75

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Damages for death shall include funeral expenses, loss of future earnings, damages forpain and suffering on the part of the victim, and damages for pain and suffering on thepart of the victim’s family.
In the case where the victim dies after receiving insurance claim payment, etc. fordamages due to permanent disability, damages for death is deemed to be the difference
between the two damages, provided that a proximate cause relationship is recognized
between the accident and death.
1. Funeral expenses(1) Funeral expenses shall be 600,000 yen.
(2) In the case where funeral expenses exceed 600,000 yen, as supported bydocumentary evidence, etc., they shall be the necessary and reasonable actual
expenses incurred up to a limit of 1,000,000 yen.
2. Loss of future earnings(1) Loss of future earnings shall be calculated by multiplying the amount of annual
earnings or annual equivalent amount, as set forth in the following subparagraphs,
minus the victim’s living expenses, by the Leibnitz coefficient for the number ofyears for which earnings can be expected for the age of death (Appendix II-1).
However, this shall not apply in the case where the probability is that an annual
equivalent amount of the all-age average wage (Appendix III) could not be obtained
throughout the victim’s life.
i) Persons in employment
The amount of earnings in the one year prior to the accident, or the annual
equivalent amount of the average wage by age (Appendix IV) corresponding to
the age of death, whichever is higher, shall be deemed as the amount of
earnings.
However, in the case of the following persons, the amounts as set forth below
shall be deemed as the earnings of the respective person concerned.
a. Persons under 35 years of age whose earnings in the one year prior to theaccident can be proved.
Whichever is the higher of the amount of earnings in the one year justbefore the accident; the annual equivalent amount of the all-age average
wage or the annual equivalent amount of the average wage by age.
b. Persons whose earnings in the one year prior to the accident is difficult toprove.
(a) Persons under 35 years of age
Whichever is the higher of the annual equivalent amount of the all-age
average wage or the annual equivalent amount of the average wage by
age.
(b) Persons of 35 years of age or older
The annual equivalent amount of the average wage by age.

76

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

(c) Persons who have been unemployed for less than one year (excluding
those who retired at the mandatory retirement age, etc.)
The standards as set forth above shall apply. In such cases the“amount of earning in the one year prior to the accident” shall be readas the “amount of earning in the one year prior to retirement”.
ii) Infants, children, pupils, students, homemakers
The annual equivalent amount of the all-age average wage shall be deemed as
the amount of earnings. However, in the case where the average wage by age ofa person of 58 years of age or older is less than the all-age average wage, theannual equivalent amount of the average wage by age shall be deemed as theamount of earnings.
iii) Other persons who have the will and ability to work
The annual equivalent amount of the average wage by age shall be deemed as
the amount of earnings. However, the annual equivalent amount of the all-age
average wage shall be the maximum limit.
(2) Notwithstanding the provisions of subparagraph (1) above, loss of future earnings byrecipients of pensions, etc. shall be calculated by multiplying the amount of annual
earning or annual equivalent amount, as set forth in the following clauses, minus thevictim’s living expenses, by the Leibnitz coefficient for the number of years forwhich earnings can be expected at the age of death (Appendix II-1), added to theamount calculated by multiplying the pensions, etc., minus the victim’s living
expenses, by the Leibnitz coefficient for average remaining life expectancy at the ageof death (Appendix II-2) minus the Leibnitz coefficient for the number of years forwhich earnings can be expected at the age of death. However, in the case where theprobability is that the annual equivalent amount of the all-age average wage
(Appendix III) could not be obtained throughout the victim’s life, this shall not
apply.
Of the various pension systems, “recipients of pensions, etc.” shall, in principle, be
persons who actually receive pensions, etc. based on contributions made by thepension rights holder. Recipients of welfare pension or survivor’s pension, for whichno contribution is required, are excluded.
i) Persons in employment
The amount of earnings in the one year prior to the accident plus the amount ofpensions, etc., or the annual equivalent amount of the average wage by age(Appendix IV) corresponding to the age of death, whichever is higher, shall bedeemed as the amount of earnings. However, in the case of persons under 35
years of age, the annual equivalent amount of the all-age average wage shallalso be compared in addition to the foregoing comparison, and the highest
amount shall be deemed as the loss of future earnings.
ii) Infants, children, pupils, students, homemakers
The amount of the pensions, etc., or the annual equivalent amount of the all-age
average wage, whichever is higher, shall be deemed as the amount of earnings.

77

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

However, in the case where the average wage by age of a person of 58 years ofage or older is less than the all-age average wage, the amount of the pensions,etc., or the annual equivalent amount of the average wage by age, whicheverhigher, shall be deemed as the amount of earnings.
iii) Other persons who have the will and ability to work
The amount of the pensions, etc., or the annual equivalent amount of theaverage wage by age, whichever is higher, shall be deemed as the amount of
earnings. However, in the case where the average wage by age is higher than the
all-age average wage, the annual equivalent amount of the all-age average wage,
or the amount of the pensions, etc., whichever is higher, shall be deemed as theamount of earnings.
(3) In the case where living expenses are difficult to prove, nominal living expenses of
35% shall be subtracted from the amount of annual earnings or annual equivalentamount if there is a dependent or dependents, and 50% from the amount of annual
earnings or annual equivalent amount if there is no dependent.
3. Damages for pain and suffering on the part of the victim
Damages for pain and suffering on the part of the victim shall be 3,500,000 yen.
4. Damages for pain and suffering on the part of the victim’s family
Persons entitled to claim damages for pain and suffering shall be the victim’s parent orparents (including adoptive parent or parents), a spouse, and a child or children (including
adopted child or children, legally acknowledged child or children, and unborn child orchildren). The amount of damages shall be 5,500,000 yen in the case where there is one
entitled claimant, 6,500,000 yen in the case where there are two entitled claimants, and7,500,000 yen in the case where there are three or more entitled claimants.
If the victim has a dependent or dependents, 2,000,000 yen shall be added to the amountset forth above.
Article 5. Damages for Bodily Injury Suffered Prior to Death
Damages for bodily injury suffered prior to death shall include direct damage (expenses
related to medical treatment (including expenses incurred for coroner’s certificate fees,
post-mortem treatment fees, etc.), documentation fees, and other expenses), loss ofearnings due to absence from work, and damages for pain and suffering in accordancewith Article 2: Damages for Bodily Injury. However, if death occurs on the day of theaccident or the following day damages shall consist of direct damages only.
Article 6. Reduction of the amount of a claim
1. Reduction due to gross negligence
In the case of gross negligence on the part of the victim, the total amount of calculated
damages shall be reduced in the case where the calculated damage is less than the limit of
insurance claim, or the limit of insurance claim shall be reduced in the case where thecalculated damage is larger than the limit of insurance claim, as shown in the table below.
However, in the case where the amount of damages for bodily injury (excluding that78

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

suffered prior to permanent disability or death) is less than 200,000 yen, this shall be theamount of the claim, and in the case where the amount is 200,000 yen or less as a result of
the reduction, the amount of the claim shall be 200,000 yen.
Degree of victim’s negligence for
reductionLess than 70%
70% or more, but less than 80%
80% or more, but less than 90%
90% or more, but less than 100%Rate of reduction
Cases related to permanent
Cases related todisability or deathbodily injury
No reduction
No reduction
20% reduction
30% reduction
20% reduction
50% reduction

2. Reduction in the case where judgement on the existence of a proximate cause relationshipbetween the injury and death or permanent disability is difficult
In cases where it is difficult to determine the existence of a proximate cause relationshipbetween the injury and death or the injury and permanent disability, such as in the casewhere the cause of death or permanent disability is unclear because the victim has a past
medical history, etc., the calculated amount of damages for death or permanent disability
shall be reduced by 50% in the case where the calculated damages is less than the limit of
insurance claim, or the limit of insurance shall be reduced by 50% in the case where thecalculated damages is larger than the limit of insurance claim.
Supplementary ProvisionThis Notification shall take effect as from 1 April, 2002, and shall apply to insurance
claim payments, etc. under automobile liability insurance, and mutual aid claim payment,
etc. under automobile liability mutual aid, in respect of accidents resulting from theoperation of an automobile that occur from that date onwards.
Appendix I
Table of Working Ability Loss Ratios
Cases in Appendix 1 of the Order for Enforcement of Automobile Liability Security Act
Disability grade
1st grade
2nd grade

Working ability loss ratio
100／100
100／100

Cases in Appendix 2 of the Order for Enforcement of Automobile Liability Security Act
Disability grade
1st grade
2nd grade
3rd grade
4th grade

Working ability loss ratio
100／100
100／100
100／100
92／10079STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Disability grade
5th grade
6th grade
7th grade
8th grade
9th grade10th grade
11th grade
12th grade
13th grade
14th grade

Working ability loss ratio
79／10067／10056／10045／10035／10027／10020／10014／1009／100
5／100

Appendix II-1
The number of years for which earnings can be expected and Leibnitz Coefficients(1) Table applicable to persons under 18 years of age.
Infants, children, pupils, students,
persons other than those on the right
who have the will and ability to work
Age

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

The number ofyears for which
earnings can be
expected
49
49
49
49
49
49
49
49
49
49
49
49
49
49
49
49
49
49

Persons in employment

Coefficient

The number ofyears for which
earnings can be
expected

Coefficient

7.549
7.927
8.323
8.739
9.176
9.635
10.117
10.62311.15411.712
12.297
12.912
13.55814.23614.947
15.69516.48017.304

67
66
65
64
63
62
61
60
59
58
57
56
55
54
53
52
51
50

19.23919.201
19.161
19.11919.07519.02918.98018.92918.87618.82018.761
18.69918.63318.56518.49318.41818.33918.25680

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

(2) Table applicable to persons of 18 years of age or older

Age

The number ofyears for which
earnings can be
expected

Coefficient

18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53

49
48
47
46
45
44
43
42
41
40
39
38
37
36
35
34
33
32
31
30
29
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14

18.16918.07717.98117.88017.77417.66317.54617.42317.29417.15917.01716.86816.711
16.54716.37416.19316.00315.80315.59315.37215.14114.89814.64314.37514.09413.79913.48913.16312.821
12.46212.085
11.69011.27410.83810.380
9.899

81

Age

The number ofyears for which
earnings can be
expected

Coefficient

54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89

14
14
13
13
12
12
12
11
11
10
10
10
9
9
8
8
8
7
7
7
6
6
6
5
5
5
5
4
4
4
4
3
3
3
3
3

9.899
9.899
9.394
9.394
8.863
8.863
8.863
8.306
8.306
7.722
7.722
7.722
7.108
7.108
6.463
6.463
6.463
5.786
5.786
5.786
5.076
5.076
5.076
4.329
4.329
4.329
4.329
3.546
3.546
3.546
3.546
2.723
2.723
2.723
2.723
2.723

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Age

The number ofyears for which
earnings can be
expected

Coefficient

90
91
92
93
94
95

3
2
2
2
2
2

2.723
1.859
1.859
1.859
1.859
1.859

Age

The number ofyears for which
earnings can be
expected

Coefficient

96
97
98
99
100
101～

2
2
2
2
2
1

1.859
1.859
1.859
1.859
1.859
0.952

(Notes)1. The numbers of years for which earnings can be expected for persons in employment
under 18 years of age and persons of 18 years of age or older are:(1) 67 years minus the age of the victim for those under 55 years of age(2) 1/2 of the average remaining life expectancy, with fractions rounded up, for those of
55 years of age or older
2. The numbers of years for which earnings can be expected and Leibnitz coefficients in thecase of infants, children, pupils, students under 18 years of age, and persons who have thewill and ability to work (except persons in employment, homemakers, and students 18
years of age or older) are calculated in accordance with the following example.
(Example) In the case of a person who is 3 years of age(1) Coefficient corresponding to the 64 years (67 years – 3 years) until end of
employment (67 years of age): 19.119(2) Coefficient corresponding to the 15 years (18 years – 3 years) until start of
employment (18 years of age): 10.380(3) The number of years for which earnings can be expected: 49 years (64 years – 15
years)(4) Applicable coefficient: 8.739 (19.119 – 10.380)
Appendix II-2
Average Remaining Life Expectancy and Leibnitz Coefficients
Male
Age

Averageremaining life
expectancy

FemaleCoefficient

Averageremaining life
expectancy

years

0
1
2

78
77
76

Coefficientyears

19.55519.53319.509

85
84
83

82

19.68419.66819.651

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Male
Age

Averageremaining life
expectancy

FemaleCoefficient

Averageremaining life
expectancy

years

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

75
74
73
72
71
70
69
68
67
66
65
64
63
62
62
61
60
59
58
57
56
55
54
53
52
51
50
49
48
47
46
45
44
43
42
41

Coefficientyears

19.48519.45919.43219.40419.37419.34319.31019.27519.23919.201
19.161
19.11919.07519.02919.02918.98018.92918.87618.82018.761
18.69918.63318.56518.49318.41818.33918.25618.16918.07717.98117.88017.77417.66317.54617.42317.294

82
81
80
79
78
77
76
75
74
73
72
71
70
69
68
67
66
65
64
63
62
62
61
60
59
58
57
56
55
54
53
52
51
50
49
48

83

19.63419.61619.59619.57619.55519.53319.50919.48519.45919.43219.40419.37419.34319.31019.27519.23919.201
19.161
19.11919.07519.02919.02918.98018.92918.87618.82018.761
18.69918.63318.56518.49318.41818.33918.25618.16918.077

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Male
Age

Averageremaining life
expectancy

FemaleCoefficient

Averageremaining life
expectancy

years

39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74

40
39
38
37
37
36
35
34
33
32
31
30
29
28
27
27
26
25
24
23
22
22
21
20
19
18
18
17
16
15
15
14
13
13
12
11

Coefficientyears

17.15917.01716.86816.71116.711
16.54716.37416.19316.00315.80315.59315.37215.14114.89814.64314.64314.37514.09413.79913.48913.16313.16312.821
12.46212.085
11.69011.69011.27410.83810.38010.380
9.899
9.394
9.394
8.863
8.306

47
46
45
44
43
42
41
40
39
38
37
36
35
34
34
33
32
31
30
29
28
27
26
25
24
24
23
22
21
20
19
18
18
17
16
15

84

17.98117.88017.77417.66317.54617.42317.29417.15917.01716.86816.711
16.54716.37416.19316.19316.00315.80315.59315.37215.14114.89814.64314.37514.09413.79913.79913.48913.16312.821
12.46212.085
11.69011.69011.27410.83810.380STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Male
Age

Averageremaining life
expectancy

FemaleCoefficient

Averageremaining life
expectancy

years

75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104

11
10
9
9
8
8
7
7
6
6
5
5
5
4
4
4
3
3
3
3
2
2
2
2
2
2
1
1
1
1

Coefficient

years

8.306
7.722
7.108
7.108
6.463
6.463
5.786
5.786
5.076
5.076
4.329
4.329
4.329
3.546
3.546
3.546
2.723
2.723
2.723
2.723
1.859
1.859
1.859
1.859
1.859
1.859
0.952
0.952
0.952
0.952

14
14
13
12
11
11
10
9
9
8
7
7
6
6
5
5
5
4
4
4
3
3
3
2
2
2
2
2
2
1

9.899
9.899
9.394
8.863
8.306
8.306
7.722
7.108
7.108
6.463
5.786
5.786
5.076
5.076
4.329
4.329
4.329
3.546
3.546
3.546
2.723
2.723
2.723
1.859
1.859
1.859
1.859
1.859
1.859
0.952

(Note) The numbers of years of average remaining life expectancy are based on life
expectancy figures in the “20th Life Tables Reference Table”.

85

STANDARDS FOR PAYMENT OF INSURANCE CLAIM, ETC.

Appendix III
All-Age Average Wage (Monthly Amount)Male

415,400

Female275,100

Appendix IV
Average wage by age (Monthly Amount)
Age
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Male

Femaleyen

187,400
199,800
219,800
239,800
259,800
272,800
285,900
298,900
312,000
325,000
337,300
349,600
361,800
374,100
386,400
398,000
409,600
421,300
432,900
444,500
450,500
456,600
462,600
468,600
474,700
478,300

yen

169,600
175,800
193,800
211,900
230,000
238,700
247,400
256,000
264,700
273,400
278,800
284,100
289,400
294,700
300,100
301,900
303,700
305,500
307,300
309,100
307,900
306,800
305,600
304,500
303,300
301,000

Age
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68~

Male

Femaleyen

482,000
485,600
489,300
492,900
495,500
498,100
500,700
503,300
505,800
500,700
495,500
490,300
485,200
480,000
455,400
430,900
406,300
381,700
357,200
350,100
343,000
336,000
328,900
321,800
314,800yen

298,800
296,500
294,300
292,000
291,800
291,700
291,600
291,400
291,300
288,500
285,600
282,800
280,000
277,200
269,000
260,900
252,700
244,500
236,400
236,400
236,400
236,500
236,500
236,500
236,600(Note) Wages in this Table are calculated based on average wages (including extra pays) bycohort for all educational backgrounds in companies with a corporate scale of 10 999 employees, compiled from the 2000 Wage Census Volume 1, Table 1: Industry
Totals (Private/Public Sector Totals) multiplying them by 0.999 to reflect subsequent
wage trends.

86

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCEPOLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE(December 1, 1955)
History of Amendment
August 1, 1962
August 1, 1966
October 1, 1970
December 27, 1971
April 1, 2002
February 7, 2005
April 1, 2010
(Scope of liability)
Article 1. The company shall pay insurance claim in accordance with the provisions of thepolicy conditions hereof when the insured is legally liable to compensate for damage
resulting from death of or bodily injury to other person arising out of the operation(hereinafter referred to as “accident”) of the automobile (hereinafter referred to as“insured automobile”) described on the certificate of automobile liability insurance(hereinafter referred to as “certificate”) within Japan (including on a Japanese vessel
outside of Japanese territorial waters).
(Definitions)
Article 2. The terms “automobile,” “operation,” “owner” or “driver” used in the policy
conditions hereof shall mean, respectively, automobile, operation, owner or driver as
stipulated in Article 2 of the Automobile Liability Security Act (hereinafter referred to as“Act”).
2. The term “insured” used in the policy conditions hereof shall mean the owner of theinsured automobile and driver of such insured automobile.
(Scope of damage and limit of liability)
Article 3. Damage under Article 1 (Scope of liability) shall be the compensation for damage
that the insured has paid to the victim and the expenses for first aid treatment, escorting
the victim, medical examination, medical treatment or nursing care paid by the insured on
the victim’s behalf.
2. The amount of the insurance claim to be paid by the company, (which means theinsurance claim payment pursuant to the provision of Article 1; the same shall be applied
hereinafter), shall be limited to the limit of insurance claim as provided in Article 2 of theOrder for Enforcement of the Act (hereinafter referred to as “limit of insurance claim”).
However, in the case of payment of the amount of compensation for damage as provided
in paragraph 1, Article 16 of the Act (hereinafter referred to as “the amount ofcompensation for damage”), the total amount of the insurance claim payment and theamount of compensation for damage shall be limited to the limit of insurance claim.

87

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE(Commencement date and termination date of insurance obligation)
Article 4. The company’s insurance obligation shall commence at the time the insurance
contract is formed and terminate at twelve o’clock noon on the final day of the insurance
period. However, in the case where the commencement date of the insurance period has
been provided beforehand in complying with the wishes of the policyholder, thecompany’s insurance obligation shall commence at such time and terminate at twelveo’clock noon on the final day of the insurance period.
(Duty of disclosure)
Article 5. At the time of concluding the insurance contract, a person who is the policyholder
or the insured must accurately disclose to the company any matters pursuant to Article 20of the Act for which the company has requested disclosure (hereafter in this Article“matters for disclosure”).
2. The company may cancel the insurance contract by a written notice to the policyholder if
the policyholder or the insured has failed to disclose facts or has misrepresented matterswith respect to the matters for disclosure intentionally or through gross negligence at thetime of concluding the insurance contract. However, in the case where the company knew
this fact or did not know this fact due to its own negligence, this provision shall not beapplied.
3. The provisions of the main clause of the preceding paragraph shall not apply after thepolicyholder or the insured has notified a correction with written statement and thecompany has accepted the same, or if one month has passed from the time when thecompany knew that there were grounds for cancellation, or if five years have passed fromthe time of concluding the insurance contract.
4. The cancellation under paragraph 2 shall take effect for the future after a lapse of sevendays counting from the day the policyholder received the cancellation notice.
5. In the case where the company has paid an insurance claim or the amount ofcompensation for damage due to an accident that occurred before the day on which thecancellation became effective pursuant to the provisions of the preceding paragraph, thecompany may request a payment for that paid amount against the policyholder.
6. If the content disclosed pursuant to paragraph 1 differs from fact, and when the insurance
premium needs to be corrected, the company shall return the difference in insurance
premiums, or demand payment of the same.
(Duty of notification)
Article 6. In the case where any of the following items shall be applied after concluding theinsurance contract, the policyholder or the insured shall notify the company in writing tothat effect without delay.
(1) In the case of having made changes with respect to the matters as stipulated in
Article 20 of the Act.
(2) In the case where the insured automobile has become an automobile as stipulated in
Article 10 of the Act.
(3) In the case of having made changes with respect to matters described in the

88

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

certificates.
2. In the case of having being notified of the changes in item (1) of the preceding paragraphor in the case of the company knowing the facts without being notified, if the risk has
increased or decreased the insurance company will refund or request the difference
between the premium for the unexpired insurance period calculated per diem by counting
from the day the risk increased or decreased and the premium calculated by computation
on a per diem basis based on the identical number of days for a premium that assumes thesame insurance period as the contract (in the case of changes to the premium after thecommencement of the insurance period, the premium before the change) for liability
insurance corresponding to the new risk (referring to the liability insurance pursuant to theprovision of Article 5 of the Act; the same shall be applied hereinafter). However, if theamount that should be refunded or requested contains a fractional amount less than tenyen, or if the total amount calculated is less than one hundred yen, that fractional amountor the total amount shall be rounded down to zero.
3. In the case where an accident has occurred after the risk increased during the insurance
period and the company has paid an insurance claim or the amount of compensation fordamage, if the policyholder or the insured having neglected to inform the company of thechanges under the provision of item (1) of paragraph 1, the company may request to thepolicyholder the payment of that amount the company paid. However, this shall not beapplied in the case where the policyholder has paid the premium as stipulated in thepreceding paragraph before occurrence of the accident based upon the company’s request.
(Occurrence of an accident)
Article 7. The policyholder or the insured shall take the following steps, when he/she learns
that there was an accident.
(1) Inform the company with written statement without delay of the following matters.
(a) The time and date, location and circumstances of the accident that have come tolight, and the address, name, age and occupation of the victim;(b) In the case of persons who may be witnesses with respect to the matters as set
forth in subitem (a) hereof, the addresses and names of those persons; and(c) In the case of having received a claim for the amount of compensation fordamage, the details of such claim.
(2) In the case where the company asks to submit documents or items to be evidence
that the company deems to be especially necessary in addition to the documents
under proceeding item (1), submit these items without delay.
(3) In the case of being able to claim for the amount of compensation for damage toother person, follow the procedures necessary to preserve or exercise that right andattempt to prevent other damage from occurring or expanding.
(4) In the case of initiating a lawsuit or a lawsuit being initiated with respect to claim forthe amount of compensation for damage, notify the company with written statement
without delay.
2. With regard to the expenses that are necessary or useful for item (3) in the preceding

89

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

paragraph, the company shall pay insurance claim, which shall be limited to the limit of
insurance claim, by totaling such expenses with the amount of damage pursuant to theprovision of paragraph 1 of Article 3 (Scope of damage and limit of liability). However, inthe event of a payment of the amount of compensation for damage, the total amount of theinsurance claim payment and the amount of compensation for damage shall be limited to
the limit of insurance claim.
(Expenses for lawsuits, etc.)
Article 8. In the case where a dispute arises between the insured and the victim with respect
to the damage under Article 1 (Scope of liability), the company shall not be responsible
for any expenses paid by the insured concerning lawsuit, compromise or mediation, etc.
(Withdrawal)
Article 9. If the company has concluded an insurance contract due to fraudulence or coercion
on the part of the policyholder or the insured, the company may withdraw the insurance
contract by notifying the policyholder to that effect in writing.
(Cancellation)
Article 10. Only in the case where the insured automobile comes under any of the following
items, the policyholder may cancel the insurance contract by submitting notification inwriting to the company:(1) In the case of the permanent deletion registration, the tentative deletion registrationfor export or the temporary deletion registration, pursuant to the provision of Article
15, Article 15-2 or Article 16 of the Road Transport Vehicle Act respectively, withrespect to the registered automobile;(2) In the case of having abandoned use and presented the vehicle number plate to the
Director-General of the Transport Supervision Department, the Chief of a Transport
Branch Office or to the Light Vehicles Inspection Organization with respect to light
automobile or two-wheeled small-sized motor vehicle;(3) In the case of having abandoned use and presented the indication plate to the head of
the special ward or mayor of the city, town or village with respect to small-size
special purpose automobile or motorcycle;(4) In the case of having returned the temporary operation permission number plate to
the competent administrative agency with respect to the automobile which received
permission for temporary operation;(5) In the case of having returned a forward operation permission number plate to the
Director-General of the Transport Supervision Department or the Chief of aTransport Branch Office with respect to an automobile which received a permission
for forward operation;(6) In the case of having returned the temporary driving number plate to the
Director-General of the Transport Supervision Department or the Chief of aTransport Branch Office with respect to light automobile for which the temporary
driving number plate was lent; or(7) In the event of having received an export permission under Article 67 of the Customs

90

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

Act.
2. In the case of any of the following items are applicable, the company may cancel the
insurance contract by written notification to the policyholder, and the policyholder may
cancel the insurance contract by written notification to the company, respectively.
(1) In the case of any facts occurring as stipulated in the provision of item 2 of paragraph
1 of Article 6 (Duty of notification); or(2) In the case of another liability insurance contract or another liability mutual aid(means liability mutual aid as stipulated in the provision of Article 5 of the Act; thesame shall be applied hereinafter), contract being concluded with respect to theinsured automobile, and the termination date of the insurance period or mutual aid
period of that contract is the same as or later than the termination date of theinsurance period of the contract hereunder.
3. The cancellation under the preceding paragraphs shall take effect only for future dates.
4. In the case of cancellation under paragraph 1 and paragraph 2 hereof or cancellation underparagraph 2 of Article 5 (Duty of disclosure) or under paragraph 6 of the same Article, thepolicyholder shall return to the company the certificate and the insurance sticker when theinsured automobile is an automobile being issued an insurance sticker, or the certificate
when the insured automobile is other automobile.
(Succession of rights and obligations of policyholder)
Article 11. In the case where the insured automobile is assigned, if the assignee or a person
designated by the assignee has agreed with the policyholder to succeed the rights andobligations of policyholder and the company has received notification to that effect fromthe policyholder and the assignee or that designated person, this shall be deemed to beapproved by the company as from the time the agreement to succeed the rights andobligations of policyholder was made.
(Alteration of premium)
Article 12. If an alteration of premium relative to the insurance contract takes place after the
insurance contract has been concluded but before the insurance period commences, thecompany shall refund or request the difference between the original premium and alteredpremium.
(Return of insurance premiums)
Article 13. When the company has withdrawn an insurance contract pursuant to Article 9(Withdrawal), the company shall not return insurance premiums.
2. In the case of lapse of the insurance contract due to the willful intent or gross negligenceof the policyholder or the insured, or in the case of cancellation under paragraph 2 ofArticle 5 (Duty of disclosure) and Article 10 (Cancellation) (excluding in the case where
the company cancelled the insurance contract pursuant to the provisions of paragraph 2 ofArticle 10), the company shall refund to the policyholder the premium based on thecancellation premium table as set forth by the company for the unexpired period.
3. Excluding in the case of the preceding paragraph, the company shall refund to thepolicyholder the entire amount of the premium in the case where the insurance contract is91

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

nullified, and the premium calculated on a per diem basis for the unexpired period bycounting from the following day in the case of lapse.
4. In the case where the insurance contract is cancelled due to reasons for which thecompany is solely responsible and in the case where the insurance contract is cancelled by
the company pursuant to the provision of paragraph 2 of Article 10 (Cancellation), thecompany shall refund to the policyholder the premium calculated based on the provisionsof the preceding paragraph.
(Submission of insurance claims)
Article 14. When the insured makes a claim for payment based on an insurance contract, theinsured must submit to the company any of the following documents or evidence asrequested by the company.
(1) Written insurance claim(2) Name seal certification or other documentary evidence to prove that the person making
the insurance claim is the person entitled to do so(3) An accident report issued by a public body(4) A report on the circumstances of the accident(5) For insurance claims paid in the case of death, a death certificate, documents certifying
the amount of income as the basis for calculating lost earnings, other documents
certifying the basis for calculating compensation for damages paid to entitled claimants,
and the family register(6) For insurance claims paid in the case of permanent disability, a certificate of permanent
disability, documents certifying the amount of income as the basis for calculating lostearnings, and other documents certifying the basis for calculating compensation fordamages paid to entitled claimants(7) For insurance claims paid in the case of injury, a medical certificate, an itemized
statement of fees for treatment (prescriptions) or a receipt equivalent to this, documents
certifying the amount of damages due to lost work and hospital visit costs, and otherdocuments certifying the basis for calculating compensation for damages paid toentitled claimants(8) A written settlement indicating the amount of legal liability borne by the insured
towards the entitled claimant, and documents certifying that compensation for damages
has been paid
2. The company may, depending on the nature of the accident, the amount of damages, etc.,
ask the policyholder or the insured to submit documents or evidence not cited in thepreceding paragraph or to cooperate in investigations conducted by the company. In thiscase, documents or evidence requested by the company must be promptly submitted andnecessary cooperation given.
3. The company may request the submission of a medical certificate from a physician
designated by the company if the company determines this to be especially necessary. In
this case, the company bears the necessary expenses.

92

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE(Payment of insurance claims)
Article 15. After completing its confirmation of the following matters necessary for thecompany to pay insurance claims, the company shall pay insurance claims within 30 days
counting from the date on which the insured completes the procedure cited in paragraph 1of the preceding Article (hereafter in this Article “claim completion date”).
(1) As matters needed to confirm whether there are grounds for paying an insurance claim:
The cause of the accident, the circumstances of the accident, whether any damages
have occurred, and facts applicable to the insured(2) As matters needed to confirm whether there are grounds for not paying an insurance
claim: The existence of facts corresponding to grounds cited in the insurance contract
as grounds for not paying insurance claims(3) As matters requiring confirmation in order to calculate the insurance claim: The
amount of damages, the relationship between the accident and the damages, the courseand content of medical treatment(4) As matters needed to confirm whether the insurance contract is valid: The existence offacts corresponding to grounds for cancellation, invalidity, disqualification orwithdrawal stipulated in the insurance contract(5) Besides those cited in the items above, other matters requiring confirmation in order todetermine the amount of insurance to be paid by the company, such as the entitlementof the insured to claim damages and other entitlements concerning the damages,
whether or not these entitlements have already been acquired, and the content thereof
2. When the special referrals or investigations cited below are essential in order to make theconfirmations cited in the preceding paragraph, the company shall, irrespective of theprovisions of said paragraph, pay the insurance claim within the number of days cited ineach of the following items counting from the claim completion date (or, when two or moreof these are applicable, the longest of the respective periods). In this case, the company
shall notify the insured of matters requiring confirmation and the time when said
confirmation should be complete.
(1) Referrals on the result of investigation by the police, public prosecutor, fire service orother public body in order to confirm matters cited in items (1) to (4) of the preceding
paragraph (including inquiries based on the Attorney Act and other inquiries based on
Acts and ordinances): 180 days
(2) Referrals on the result of diagnosis, expert appraisal, etc., by medical institutions,
testing bodies and other specialist bodies in order to confirm matters cited in items (1)to (4) of the preceding paragraph: 90 days
(3) Of the matters cited in item (3) of the preceding paragraph, referrals on the result of
diagnosis by medical institutions, screening, etc., by specialist bodies related to thecertification of permanent disability in order to confirm the content and degree of
permanent disability: 120 days(4) Investigations in order to confirm matters in each item of the preceding paragraph inareas damaged by a disaster covered by the Disaster Relief Act: 60 days(5) Investigations outside Japan in cases where there are no alternative means of93

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

confirming matters in each item of the preceding paragraph within Japan: 180 days
3. When confirming the necessary matters cited in the preceding two paragraphs, if thepolicyholder or the insured obstructs said confirmation or fails to respond to the same
without justifiable grounds (including cases where the necessary cooperation is not given),
the resultant delay in confirmation shall not be included in the period cited in paragraph 1or the preceding paragraph.
(Claims for damages)
Article 16. When an owner has incurred liability to compensate for damage pursuant to
Article 3 of the Act, a victim may claim payment of damages from the company, based on
the provisions of Article 16 of the Act.
(Exemption in the case of double contracts)
Article 17. In the case where other liability insurance contract and/or liability for mutual aid
contract has been concluded in addition to the insurance contract hereunder in respect of
the insured automobile, the company shall not pay an insurance claim, the amount ofcompensation for damage and the provisional payment under the provisions of paragraph
1 of Article 17 (hereinafter referred to as “provisional payment” in this Article) for an
accident that occurred during the insurance period that overlaps with such other insurance
period and/or mutual aid period of the contract concluded prior to the conclusion of
insurance hereunder.
2. In the case of preceding paragraph, if the company, in response to a claim for the amountof compensation for damage or provisional payment (hereinafter referred to as “paymentof the amount of compensation for damage, etc.” in this paragraph and paragraph 4), hasmade payment of the amount of compensation for damage, etc., the company shall acquire
the rights of the victim against the insured who is liable up to the limit of the amount ofsuch payment except in the case where the company or the victim have known theexistence of other contract that was concluded prior to the conclusion of the insurance
contract hereunder.
3. In the case where other liability insurance contract and/or mutual aid contract has beenconcluded in addition to the insurance contract hereunder in respect of the insured
automobile, if there exist 2 or more policies including this contract concluded at theearliest time, the company shall not pay with respect to any amount that exceeds theamount obtained by dividing the amount of the insurance claim, the amount ofcompensation for damage and provisional payment that should be paid under the
insurance contract hereunder by the number of such contracts.
4. In the case of the preceding paragraph, if the company has made a payment in response toa claim for the amount of compensation for damage, etc., the company shall acquire therights of the victim against the insured who is liable up to the limit of payment of theamount of compensation for damage, etc. that should be exempted pursuant to theprovisions of the preceding paragraph, except in the case where the company or the victim
has known the existence of the other contract that was concluded at the earliest time.

94

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE(Exemption of damage caused by malicious intent)
Article 18. The company shall not pay an insurance claim with respect to damage caused bymalicious intent of the policyholder or the insured.
(Designated dispute settlement body)
Article 19. Notwithstanding the provisions of preceding 2 paragraphs, both of the parties may
apply for dispute resolution to a designated dispute settlement body as stipulated in theprovision of Article 23-5 of the Act in the case where a dispute arises between thecompany and the insured or the victim with respect to the decision of the amount of
insurance claim or the amount of compensation for damage that the company should pay.
2. The company shall abide by that mediation in the case where the dispute resolution isconducted by the designated dispute settlement body under the preceding paragraph.
However, this provision shall not apply in the case of a decision that has been made by ajudgment, compromise or mediation, etc. in a court of Act.
(Subrogation)
Article 20. When the insured is entitled to claim damages or has acquired other entitlements asa result of damages arising, and when the company has paid an insurance claim to theinsured for said damages or paid damages to the victim, those entitlements shall betransferred to the company, provided, however, that the transfer shall be limited tofollowing amounts.
(1) When the company has paid the full amount of damages as payment of an insurance
claim or indemnity for damage: The full amount of the entitlement of the insured(2) Cases other than the preceding item: The entitlement acquired by the insured, minus
the amount of damages for which an insurance claim or indemnity for damage have notbeen paid
2. In item (2) of the preceding paragraph, entitlements that are not transferred to thecompany but remain in the possession of the insured shall be settled with priority over theentitlements transferred to the company.
3. The insured shall submit to the company all of the documents necessary in order toexercise the rights under the preceding paragraph if an insurance claim was paid to theinsured or the amount of compensation for damage was paid to the victim.
(Statutory lien)
Article 21. Entitled claimants for damages arising from an accident shall have statutory lien
concerning entitlements for insurance claims by the insured to the company.
2. Entitlements for insurance claims may not be transferred to a third party other than anentitled claimant. Entitlements for insurance claims may not be used as rights of pledge,
and may not be seized, except when seizing entitlement to said damages claim; provided,
however, that this shall not apply to cases in which the insured has paid damages to thevictim.
(Re-issue of certificate, etc.)
Article 22. The company shall reissue a certificate or insurance sticker to the policyholder in

95

POLICY CONDITIONS FOR AUTOMOBILE LIABILITY INSURANCE

the case applicable to any of the following items. However, in the case of receiving areissue of insurance sticker the policyholder shall present his/her certificate.
(1) Upon submission of a certificate or insurance sticker that is damaged or has become
difficult to identify; or(2) In the case where a certificate or insurance sticker can not be presented due to theft,
fire or loss, upon submission of documents proving such fact.
(Governing Act)
Article 23. Any matters not provided in the policy conditions hereof shall be governed by theActs and regulations of Japan.

96

ORDINANCE CONCERNING MEASURES TO ACHIEVE PROPERPAYMENT OF AUTOMOBILE LIABILITY INSURANCE CLAIMS, ETC.,AND AUTOMOBILE LIABILITY MUTUAL AID CLAIMS, ETC.
(Ordinance of the Cabinet Office and the Ministry of Land, Infrastructure, Transport andTourism No. 2, December 21, 2001)
History of Amendment
No. 1, March 7, 2005
No. 4, December 1, 2008
CHAPTER I.

GENERAL PROVISIONS(Terms)
Article 1. The terms used in this Ordinance shall be governed by those used in the
Automobile Liability Security Act (hereinafter “the Act”).
CHAPTER II.

MEASURES TO ACHIEVE PROPER PAYMENT(Issue of written statements)
Article 2. The matters to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under paragraph 1, Article 16-4 of
the Act shall be those set forth below.
(1) A summary of the standards for payment.
(2) A summary of the procedure for payment of insurance claim, etc.
(3) A summary of designated dispute settlement organizations.
Article 3. The matters to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under paragraph 2, Article 16-4 of
the Act shall be those set forth below.
(1) The date of the accident.
(2) The amount of payment for each of the damages set forth in the items of paragraph 1,
Article 2 of the Order for Enforcement of the Automobile Liability Security Act(hereinafter “the Order”).
(3) In cases corresponding to permanent disability, the grade to which they correspond(hereinafter “grade of permanent disability”) and the reason for determining such
grades.
(4) When the amount of the insurance claim, etc., has been reduced from the amount ofdamage, the rate of such reduction and the reason for determining said reduction.
Article 4. Insurance companies must, when intending to issue the written statement stipulated
in paragraph 3, Article 16-4 of the Act, describe the following matters on said written
statement.
(1) A summary of the circumstances of the accident.

97

(2) When it is judged that the insured is not liable to compensate for damages, the reason
for said judgment.
(3) When it is judged that no damages have arisen as a result of the accident, the reason
for said judgment.
(4) When it is judged that the insurance company is exempted from liability to
indemnify for damages under the provisions of Article 14 of the Act, the reason forsaid judgment.
(Means of utilizing information and communication technology)
Article 5. The means to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under the provisions of paragraph 4,
Article 16-4 of the Act as an alternative to the issuance of written statements set forth in
the same paragraph shall be those set forth below.
(1) One of the means of utilizing an electronic information processing system (meaning
an electronic information processing system that links a computer used by aninsurance company to a computer used by the insured or the victim via
telecommunication lines; the same shall apply hereinafter) that are set forth in (a) or(b) below.
(a) A means whereby the matters set forth in the preceding three Articles(hereinafter “described matters”) are transmitted via telecommunication lines
from a computer used by an insurance company to a computer used by the
insured or the victim, and are recorded in a file installed in said computer.
(b) A means whereby described matters recorded in a file installed in a computerused by an insurance company are provided via telecommunication lines forperusal by the insured or the victim, and are recorded in a file installed in acomputer used by the insured or the victim.
(2) A means of issuing media on which the matters to be described in written statements
have been recorded on a file prepared using a magnetic disk (including other media
on which certain matters may be recorded reliably using a method equivalent to this;the same shall apply hereinafter).
2. The means set forth in the preceding paragraph must be one in which the insured or thevictim is able to prepare written statements by outputting the records existing on the file.
Article 6. The type of electromagnetic means to be indicated under the provisions ofparagraph 1, Article 4-2 of the Order shall be, of the means set forth in paragraph 1 of thepreceding Article, that used by the insurance company, and the content of theelectromagnetic means to be indicated shall be the means of recording in a file.
2. The electromagnetic means to be used when indicating consent under paragraph 1, Article
4-2 of the Order or making a request under paragraph 2 of the same Article (hereafter inthis paragraph “consent, etc.”) shall be one the means set forth below.
(1) One of the means of utilizing an electronic information processing system set forth in(a) or (b) below.
(a) A means whereby an indication of consent, etc., is transmitted via

98

telecommunication lines from a computer used by the insured or the victim to acomputer used by an insurance company, and is recorded in a file installed insaid computer.
(b) A means whereby the type and content of the electromagnetic means stipulated
in the preceding paragraph, when recorded in a file installed in a computer usedby an insurance company, are provided via telecommunication lines for perusal
by the insured or the victim, and the indication of the consent, etc., is recorded
in a file installed in said computer.
(2) The means stipulated in item 2, paragraph 1 of the preceding Article.
(Explanation, etc., by written statement)
Article 7. The matters to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under paragraph 1, Article 16-5 of
the Act shall be those set forth below.
(1) The detailed circumstances of the accident.
(2) Specific details of the expenses incurred for payment due to the accident, profit lost
due to the accident, pain and suffering and other damages, and the details of thecalculations for each reported item.
(3) In cases corresponding to permanent disability, the detailed reason for determining
the grade of permanent disability.
(4) When the amount of insurance claim, etc., has been reduced from the amount ofdamage, the detailed reason for determining the rate of such reduction.
(5) When it is judged that the insured is not liable to compensate for damages, thedetailed reason for said judgment.
(6) When it is judged that no damages have arisen as a result of the accident, the detailed
reason for said judgment.
(7) When it is judged that the insurance company is exempted from liability to
indemnify for damages under the provisions of Article 14 of the Act, the detailed
reason for said judgment.
(Means of utilizing information and communication technology)
Article 8. The means to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under the provisions of paragraph 5,
Article 16-5 of the Act shall be the means set forth in paragraph 1, Article 5.
2. The provisions of paragraph 2, Article 5 shall apply mutatis mutandis to the means
stipulated in the preceding paragraph.
Article 9. The provisions of paragraph 1, Article 6 shall apply mutatis mutandis to the typeand content of the electromagnetic means to be indicated under the provisions ofparagraph 1, Article 4-2 of the Order as applied mutatis mutandis under Article 4-3 of theOrder, and the provisions of paragraph 2, Article 6 to the consent, etc., in Article 4-2 ofthe Order as applied mutatis mutandis under Article 4-3 of the Order, respectively.

99

(Application of provisions concerning liability insurance)
Article 10. The provisions of Article 2 through the preceding Article shall apply mutatis
mutandis to liability mutual aid. In this case, “insurance claim, etc.” in these provisions
shall be read as “mutual aid claim, etc.”, “insurance company” as “cooperative”, and “theinsured” as “the insured of mutual aid”.
CHAPTER III.

DESIGNATED DISPUTE SETTLEMENT ORGANIZATIONS(Application for designation as a designated dispute settlement organization)
Article 11. Organizations that intend to receive designation under the provisions of paragraph
1, Article 23-5 of the Act must submit an application describing the following matters to
the Minister of Land, Infrastructure and Transport and the Prime Minister.
(1) The business name and address.
(2) The location of the office where dispute settlement activities are to be carried out.
(3) The date on which dispute settlement activities will be begun.
2. The written statements set forth in each of the following items must be appended to theapplication in the preceding paragraph.
(1) Transcripts of the articles of association and the company register(2) The inventory of assets for the business year before that in which the date of theapplication falls (or, in the case of a corporation established in the business year inwhich the date of the application falls, the inventory of assets at the time ofestablishment) and balance sheet.
(3) Documents certifying the decision to make the application.
(4) Documents describing the names and profiles of officers.
(5) Documents describing matters concerning the organization and its management.
(6) Documents describing the names and profiles of persons to be selected as disputesettlement members.
(7) Documents describing a summary of activities currently undertaken.
(8) Documents describing other relevant matters.
(Notice to indicate status as a designated dispute settlement organization)
Article 12. Designated dispute settlement organizations must place a notice indicating theirbusiness name together with the text “designated dispute settlement organization” in aclearly visible location near their office entrance or reception desk.
(Applications for dispute settlement)
Article 13. Persons intending to apply for dispute settlement must submit a dispute settlement
application describing the following matters to a designated dispute settlement
organization.
(1) The name and address of the party to a dispute and their agent.
(2) The matter requiring dispute settlement.
(3) Problems with the dispute, a summary of the negotiation process and the content of
the claim.

100(4) A summary of the circumstances of the accident and other matters relevant whensettling disputes.
(5) The date of the application.
(Start of mediation)
Article 14. When a designated dispute settlement organization has received a disputesettlement application from one or both of the parties to a dispute, it shall carry out
mediation.
(When mediation is declined)
Article 15. Designated dispute settlement organizations shall decline to carry out mediation
when they deem it inappropriate to mediate on the dispute owing to the nature thereof, or
when they deem that a party to a dispute has improperly applied for mediation without
due cause.
(Filing of mediation records, etc)
Article 16. Designated dispute settlement organizations must file mediation records
describing the course of deliberation and other documents concerning a case for 10 (ten)years from the date on which the procedures for dispute settlement were completed.
(Number of dispute settlement members to be selected)
Article 17. The number to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under paragraph 1, Article 23-7 of
the Act shall be 30 (thirty).
(Selection and dismissal of officers, etc.)
Article 18. Designated dispute settlement organizations must, when intending to obtainapproval for the selection or dismissal of officers under the provisions of paragraph 1,
Article 23-8 of the Act (including dispute settlement members; the same shall apply
hereafter in this Article), submit an application describing the following matters to the
Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister.
(1) The names and profiles of officers to be selected or dismissed.
(2) The scheduled date of the selection or dismissal.
(3) The reason for the selection or dismissal.
(Matters described in dispute settlement activities bylaws)
Article 19. The matters to be provided in Ordinance of the Ministry of Land, Infrastructure,
Transport and Tourism and Cabinet Office Ordinance under paragraph 2, Article 23-11 of
the Act shall be those set forth below.
(1) Matters concerning the hours for carrying out dispute settlement activities andholidays.
(2) The location of the office and matters concerning the area within which said officecarries out dispute settlement activities.
(3) Matters concerning the method of carrying out dispute settlement activities.
(4) Matters concerning the method of collecting the expenses stipulated in Article 26.

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(5) Matters concerning the selection and dismissal of dispute settlement members.
(6) Matters concerning the protection of confidentiality concerning dispute settlement
activities.
(7) Matters concerning the allocation of dispute settlement members.
(8) Matters concerning the system for carrying out dispute settlement activities.
(9) Other matters necessary for carrying out dispute settlement activities.
(Application for approval of business plans, etc.)
Article 20. Designated dispute settlement organizations must, when intending to receive
approval for business plans as well as budgets pertaining to dispute settlement activities
under the provisions of the first sentence of paragraph 1, Article 23-14 of the Act, submit
an application together with the following documents to the Minister of Land,
Infrastructure and Transport, and Tourism and the Prime Minister.
(1) The estimated balance sheet for the previous business year.
(2) The estimated balance sheet for the current business year.
(3) Besides those set forth in the preceding two items, documents relevant to budgets
pertaining to dispute settlement activities.
(Application for approval of changes to business plans, etc.)
Article 21. Designated dispute settlement organizations must, when intending to receive
approval for changes to business plans or budgets pertaining to dispute settlement
activities under the provisions of the second sentence of paragraph 1, Article 23-14 of theAct, submit an application describing the matters to be changed and the reason for thechange to the Minister of Land, Infrastructure, Transport and Tourism and the Prime
Minister. In this case, when changes in budgets are accompanied by changes in the
documents set forth in item (2) or (3) of the preceding Article, the relevant documents
after said change must also be appended.
(Submission of business reports, etc.)
Article 22. Designated dispute settlement organizations must, when submitting business
reports and financial statements pertaining to dispute settlement activities under theprovisions of paragraph 2, Article 23-14 of the Act, also append the inventory of assets
and balance sheet.
(Suspension or termination of activities)
Article 23. Designated dispute settlement organizations must, when intending to receive
permission under the provisions of paragraph 1, Article 23-15 of the Act, submit anapplication describing the date and duration of the proposed suspension or termination as
well as the reason for the suspension or termination to the Minister of Land, Infrastructure,
Transport and Tourism and the Prime Minister.
(Books)
Article 24. The matters described in books to be provided in Ordinance of the Ministry ofLand, Infrastructure, Transport and Tourism and Cabinet Office Ordinance under Article
23-16 of the Act shall be those set forth below.

102(1) The date on which the dispute settlement application was received.
(2) The date on which dispute settlement was carried out.
(3) The names and addresses of the parties to a dispute and their agents.
(4) The name of the dispute settlement member who carried out the dispute settlement.
(5) The result of the dispute settlement.
(6) If the expenses stipulated in Article 26 have been collected, the amount thereof.
2. If the matters set forth in each of the items of the preceding paragraph are recorded in afile or magnetic disk installed in a computer, and when clearly indicated on paper using acomputer or other apparatus by a designated dispute settlement organization whenevernecessary, said records may be used in lieu of statements in books under Article 23-16 of
the Act (in the following paragraph simply “books”).
3. Designated dispute settlement organizations must retain books (including a file ormagnetic disk under the provisions of the preceding paragraph when recorded as in thesame paragraph) until all of their dispute settlement activities have been terminated.
(On-the-spot inspections)
Article 25. The proof of identity in paragraph 2, Article 23-2 of the Act as applied mutatis
mutandis under paragraph 2, Article 23-17 of the Act shall be in accordance with
Attached Form No. 1.
(Expenses to be borne by parties to a dispute)
Article 26. Designated dispute settlement organizations may, when the head of a designateddispute settlement organization deems it reasonable, cause the parties to a dispute to bear
the expenses needed for official appraisal, appearance by witnesses or other proceduresfor dispute settlement pertaining to a claim by the said parties.

103

CABINET ORDER PROVIDING FOR AMOUNTS OF CONTRIBUTIONS,
ETC., FOR AUTOMOBILE LIABILITY COMPENSATION BUSINESS(Cabinet Order No. 316, December 1, 1955)
History of Amendment
Cabinet Order No. 18, January 30, 1958
Cabinet Order No. 269, July 28, 1966
Cabinet Order No. 204, July 24, 1967
Cabinet Order No. 295, September 16, 1967
Cabinet Order No. 263, September 18, 1970
Cabinet Order No. 350, November 27, 1973
Cabinet Order No. 261, June 27, 1978
Cabinet Order No. 282, July 5, 1978
Cabinet Order No. 4, January 22, 1985
Cabinet Order No. 4, January 22, 1991
Cabinet Order No. 9, January 27, 1993
Cabinet Order No. 276, September 13, 1996
Cabinet Order No. 162, April 11, 1997
Cabinet Order No. 184, May 27, 1998
Cabinet Order No. 393, December 15, 1998
Cabinet Order No. 244, June 7, 2000
Cabinet Order No. 312, June 7, 2000
Cabinet Order No. 88, March 29, 2002
(Amount of Automobile Liability Compensation Business Contribution)
Article 1. The amount of the Automobile Liability Compensation Business Contribution thatmust be paid by insurance companies or cooperatives pursuant to Article 78 of theAutomobile Liability Security Act (hereinafter “the Act”) shall be an amount calculated inaccordance with Equation No. 1 for each liability insurance or liability mutual aid contractconcluded.
(Amount of negligence fine)
Article 2. The amount of the negligence fine that may be collected by the Government
pursuant to Article 79 of the Act shall be an amount calculated in accordance with
Equation No. 2 for each motor vehicle.
Equation No. 1(Related to Article 1)

N × (25 ÷ 10,000) + (E - A) × {K ÷ (K + 4)} × (6 ÷ 1,000)
Notes:N

In this equation, the meanings of N, E, A and K shall be as follows.
The amount of pure insurance premiums or pure mutual aid premiums.

104

E
A

K

The amount of expense-loading insurance premiums or expense-loading mutual aid
premiums.
An amount prescribed by Notification of the Minister of Land, Infrastructure,
Transport and Tourism following discussion with the Commissioner of the Financial
Services Agency (or, in cases related to liability mutual aid contracts concluded byagricultural cooperatives, etc., the Minister of Agriculture, Forestry and Fisheries, incases related to liability mutual aid contracts concluded by consumer cooperatives,
etc., the Minister of Health, Labour and Welfare, and in cases related to liability
mutual aid contracts concluded by common facility cooperatives, etc., minister withjurisdiction over the business) as the amount equivalent to the sum of expenses
required for the procedure of concluding a liability insurance or liability mutual aid
contract.
When the period of insurance or mutual aid is based on years, the number of years;
when based on months, the proportion compared to 12 (twelve) of those months; andwhen based on days, the proportion compared to 365 (three hundred and sixty-five)of those days.

Equation No. 2(Related to Article 2)

N × (25 ÷ 10,000) + (E - A) × (1 ÷ 1,000)
Note:
In this equation, N, E and A, respectively, shall be taken as N, E and A in Equation
No. 1 related to liability insurance contracts with an insurance term of 1 (one) year
corresponding to the type of automobile in question.

105

RULES FOR AUTOMOBILE LIABILITY COMPENSATION BUSINESSENTRUSTMENT CONTRACTS(Ordinance of the Ministry of Transport No. 3, February 6, 1956)
History of Amendment
No. 2, February 4, 1959
No. 1, January 30, 1960
No. 6, February 11, 1961
No. 1, January 31, 1963
No. 65, September 5, 1964
No. 1, January 30, 1965
No. 50, September 28, 1966
No. 2, March 9, 1968
No. 10, March 31, 1973
No. 12, March 29, 1975
No. 13, March 28, 1983
No. 4, March 26, 1986
No. 2, January 31, 1990
No. 8, March 25, 1992
No. 6, March 24, 1994
No. 11, March 26, 1998
No. 39, November 29, 2000
Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism
No. 149, December 21, 2001
No. 35, March 26, 2003
No. 18, March 29, 2006
No. 12, March 31, 2008
No. 8, March 25, 2009
(Application of this Ministerial Ordinance)
Article 1. Rules concerning contracts for entrustment of Automobile Liability Compensation
Business under the provisions of paragraph 3, Article 22 of the Order for Enforcement of
the Automobile Liability Security Act (Cabinet Order No. 286 of 1955; hereinafter “theOrder”) shall be as provided in this Ministerial Ordinance.
(Scope of business subject to entrustment)
Article 2. The Government shall entrust the insurance companies or the cooperatives withreceipt of the claims for damages to be indemnified, investigation of the amount ofdamages to be indemnified, payment of indemnity and other business under the provisionsof paragraph 1, Article 72 of the Automobile Liability Security Act (Act No. 97 of 1955;
hereinafter “the Act”), other than decisions on amounts of indemnity, in accordance with106

these Rules, based on the provisions of paragraph 1, Article 22 of the Order.
(Referral of written claims for indemnity)
Article 3. An insurance company or cooperative shall, when receiving a written claim forindemnity, refer the same to the Minister of Land, Infrastructure, Transport and Tourism
without delay, appending a written investigation of the amount of damages to beindemnified.
(Decision of indemnity for damages)
Article 4. The Minister of Land, Infrastructure, Transport and Tourism shall, when receiving awritten claim for indemnity referred as in the preceding Article, decide the amount of
indemnity for damages and notify the insurance company or cooperative without delay.
(Payment of indemnity for damages)
Article 5. The insurance company or cooperative shall, when receiving the notification in thepreceding Article, immediately pay the indemnity for damages decided under theprovisions of the same Article to the person who made the claim for indemnity(hereinafter “the claimant”).
2. The Minister of Land, Infrastructure, Transport and Tourism shall pay indemnity fordamages paid under the provisions of the preceding paragraph to the insurance company
or cooperative without delay on a monthly basis.
Article 6. through Article 8. Deleted(Method of payment of entrustment fees)
Article 9. Entrustment fees shall be paid once a year to insurance companies andcooperatives.
2. The year in the preceding paragraph shall start in February of one year and end in Januaryof the next.
3. Entrustment fees shall be paid without delay after the passage of the period in thepreceding paragraph.
(Amount of entrustment fees)
Article 10. The amount of entrustment fees shall be an amount calculated for each year inaccordance with the Equation below, provided however that the total amount may notexceed an amount provided in the budget.
(Notice)
Article 11. When the Government has paid indemnity for damages under the provisions of thefirst sentence of paragraph 1, Article 72 of the Act and the person who is not liable tocompensate for damages becomes clear, the insurance company or cooperative shall notify
the Minister of Land, Infrastructure, Transport and Tourism of the following matterswithout delay.
(1) The names and addresses of the person who is liable to compensate for damages andthe claimant, as well as the date on which the payment in paragraph 1, Article 5 was
made.

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(2) The automobile registration number or vehicle number of the automobile in question,
the identification plate (meaning an identification plate as provided in paragraph 3,
Article 446 of the Local Tax Act (Act No. 226 of 1950) (including cases appliedmutatis mutandis under paragraph 2, Article 1 of the same Act)) or the registration
number under the provisions of the Convention on Road Traffic (or, if none of these
exists, the chassis number).
(3) The name of the insurance company or cooperative pertaining to said automobile,and no. of the certificate of automobile liability insurance, or no. of the certificate ofautomobile liability mutual aid..
(Reports, etc.)
Article 12. The Minister of Land, Infrastructure, Transport and Tourism may request reports
or the disclosure of books and records related to entrusted business from insurancecompanies and cooperatives.
(Cancellation of entrustment contracts)
Article 13. The Minister of Land, Infrastructure, Transport and Tourism or insurancecompanies or cooperatives shall, when intending to cancel an entrustment contract, give aminimum of 6 (six) months’ notice to the other party.
Article 14. The Minister of Land, Infrastructure, Transport and Tourism may immediately
cancel a entrustment contract when an insurance company or a cooperative violates its
obligations based on said entrustment contract, fails to make reports under the provisionsof Article 12, or refuses a request for disclosure.
Equation(Related to Article 10)(C + T) ×0.4293 × (N ÷ M)
Notes:(1) In this equation, C and T, respectively, shall express the following amounts during
the period specified in paragraph 2, Article 9.
C The Government’s revenues from Automobile Liability Compensation BusinessContribution.
T An amount equivalent to the Automobile liability Compensation BusinessContribution transferred from the General Account to the Automobile Safety
Special Account.
(2) In this equation, M and N, respectively, shall express the following number of claims
during the period specified in paragraph 2, Article 9.
M The number of written claims for indemnity received by all insurancecompanies and cooperatives.
N The number of written claims for indemnity received by the insurance company
or cooperative in question.

108

ORDER ON THE ACCUMULATION, ETC., OF RESERVE FUNDSPROVIDED IN PARAGRAPH 1, ARTICLE 28-3 OF THE AUTOMOBILE
LIABILITY SECURITY ACT(Ordinance of the Ministry of Finance, the Ministry of Health and Welfare, the Ministry ofAgriculture, Forestry and Fisheries, the Ministry of International Trade and Industry, and theMinistry of Transport No. 1, March 13, 1997)
History of Amendment
Ordinance of the General Administrative Agency of the Cabinet, the Ministry of Finance, theMinistry of Health and Welfare, the Ministry of Agriculture, Forestry and Fisheries, theMinistry of International Trade and Industry, and the Ministry of Transport
No. 1, March 31, 2000
Ordinance of the General Administrative Agency of the Cabinet, the Ministry of Health andWelfare, the Ministry of Agriculture, Forestry and Fisheries, the Ministry of International
Trade and Industry, and the Ministry of Transport
No. 1, June 26, 2000
Ordinance of the Cabinet Office, the Ministry of Health, Labour and Welfare, the Ministryof Agriculture, Forestry and Fisheries, the Ministry of Economy, Trade and Industry, and theMinistry of Land, Infrastructure, Transport and Tourism
No. 3, March 31, 2005
No. 1, March 30, 2007
(Accumulation of reserve funds by insurance companies)
Article 1. Insurance companies shall, at the end of each business year (meaning the period
from April 1 to March 31 of the following year; the same shall apply hereinafter),accumulate the amount as set forth in each of the following items, in accordance with thecategories as set forth in each of said items, as the Reserve Funds to be provided in thecompetent Ministerial Ordinance under paragraph 1, Article 28-3 of the Automobile
Liability Security Act (Act No. 97 of 1955; hereinafter “the Act”).
(1) Mandatory Reserve Fund: Of the balance of revenue and expense arising fromliability insurance business, an amount calculated in accordance with the method
described in the documents listed in item 4, paragraph 2, Article 4 of the Insurance
Business Act (Act No. 105 of 1995) (hereinafter “statement of calculation
procedures”) as the amount of said difference related to liability insurance contracts
whose period from the date on which the insurance period begun to the last day ofthe business year concerned is not more than 4 (four) years, based on the amountobtained by subtracting the amount in subitem (c) from the total of the amounts insubitem (a) and (b) related to said contracts.
(a) An amount obtained after subtracting the amount collected from the amountallocated through joint pooling affairs in each business year.
(b) The amount of assumed interest accruing in each business year (meaning the109

profit from asset investment estimated to arise within an insurance period whencalculating premiums for liability insurance with an insurance period of morethan 1 (one) year).
(c) The amount of reserve for outstanding claims to be accumulated by the end of
the current business year.
(2) Adjustment Reserve Fund: Of the balance of revenue and expense arising fromliability insurance business, an amount calculated in accordance with the method
described in the statement of calculation procedures as the amount of said difference
related to liability insurance contracts whose term from the date on which theinsurance period begun to the last day of the current business year is more than 4(four) years, based on the amount obtained by subtracting the amount in (iii) of thepreceding item from the total of the amounts in (i) and (ii) of the same item related tosaid contracts.
(3) Expense Loading Reserve Fund: Of the balance of revenue and expense arising fromliability insurance business, an amount calculated in accordance with the method
described in the statement of calculation procedures as the amount of said difference
other than those provided in the preceding two items, based on the amount of thebalance of revenue and expense related to the expenses needed to undertake liability
insurance business, and, of the investment profit arising from liability insurance
business, an amount calculated in accordance with the method described in thestatement of calculation procedures as the amount of said profit related to saidbalance of revenue and expense, the Reserve Funds comprising the total of these two
amounts.
(4) Investment Yield Reserve Fund: Of the investment profit arising from liability
insurance business, an amount calculated in accordance with the method described in
the statement of calculation procedures as the amount of said profit other than thatprovided in the preceding item, based on the amount obtained by subtracting the totalof the amount of expenses needed for asset investment, the amount in subitem (b),item (1) and the amount of investment profit provided in the preceding item from theamount of profit on said asset investment related to liability insurance business.
(Drawing down of reserve funds by insurance companies)
Article 2. The cases to be provided in Competent Ministerial Ordinance under paragraph 1,
Article 28-3 of the Act shall be those as set forth in each of the following items.
(1) Cases in which the Investment Yield Reserve Fund provided in item (4) of thepreceding Article is drawn down in order to furnish the expenses needed formeasures for automobile accident prevention, improvement of emergency medical
systems, measures for automobile accident victims, measures for permanent
disability recognition, measures for correction of payment of medical expenses orother measures that contribute to an improvement in liability insurance budgets or
improved protection for automobile accident victims.

110

(2) Cases in which, due to changes in tax rates for corporation tax, etc. (meaning
corporation tax and other taxes levied on the basis of amounts related to profit or
surplus; the same shall apply hereinafter), the Adjustment Reserve Fund provided initem (2) of the preceding Article, the Expense Loading Reserve Fund provided initem (3) of the same Article, and the Investment Yield Reserve Fund provided initem (4) of the same Article are drawn down in line with the reduction in the amountequivalent to corporation tax, etc., calculated on the basis of the amounts of thesereserve funds, in cases subject to the application of tax effect accounting (meaning
accounts processing with the aim of rationally offsetting amounts of corporation tax,etc., against amounts of current term profit or current term surplus, or current term
net profit or current term net surplus, before deducting corporation tax, etc., byallocating corporation tax, etc. into appropriate accounting periods, related to thedifference between the amount of assets and liabilities accounted on the balance
sheet and the amount of assets and liabilities computed through calculation of taxable
income).
(Accumulation and drawing down of reserve funds by cooperatives)
Article 3. The provisions of the preceding two Articles shall apply mutatis mutandis toagricultural cooperatives, etc. In such cases, “insurance companies” in these provisions
shall be read as “agricultural cooperatives, etc.”, “paragraph 1, Article 28-3” as“paragraph 1, Article 28-3 as applied mutatis mutandis under paragraph 2 of the same
Article”, “liability insurance business” as “liability mutual aid business”, “insurance
period” as “mutual aid period”, “liability insurance contracts” as “liability mutual aid,
re-mutual aid or retrocession-mutual aid contracts”, “subitem (a) related to said contracts”
as “subitem (a) related to said contracts (excluding those concluded before 10 (ten) years
have passed from the date of enforcement of the Act for Partial Amendment of theAutomobile Liability Security Act (Act No. 137 of 1995; hereafter in this Article“Revision Act”))”, “the amount obtained by subtracting the amount in subitem (c)” as “thetotal of the amount obtained by subtracting the amount in subitem (c) plus the balance ofrevenue and expense related to said contracts as calculated in accordance with a method tobe provided in the Minister of Agriculture, Forestry and Fisheries (excluding thoseconcluded before 10 (ten) years have passed from the date of enforcement of RevisionAct)”, “documents listed in item 4, paragraph 2, Article 4 of the Insurance Business Act(Act No. 105 of 1995)” as “mutual aid rules provided in paragraph 1, Article 11-7 of theAgricultural Cooperative Association Act (Act No. 132 of 1947)”, “statement ofcalculation procedures” as “mutual aid rules”, “premiums for liability insurance” as“premiums for liability mutual aid”, “subitem (a) of the same item related to said
contracts” as “subitem (a) of the same item related to said contracts (excluding thoseconcluded before 10 (ten) years have passed from the date of enforcement of RevisionAct)”, “improvement in liability insurance budgets” as “improvement in liability mutual
aid budgets”, and “item (4) of the preceding Article” as “item (4) of the preceding Article
as applied mutatis mutandis under paragraph 1 of the following Article”

111

2. The provisions of the preceding two Articles shall apply mutatis mutandis to consumer
cooperatives, etc. In such cases, “insurance companies” in these provisions shall be readas “consumer cooperatives, etc.,”, “paragraph 1, Article 28-3” as “paragraph 1, Article28-3 as applied mutatis mutandis under paragraph 3 of the same Article”, “liability
insurance business” as “liability mutual aid business”, “insurance period” as “mutual aid
period”, “liability insurance contracts” as “liability mutual aid or re-mutual aid contracts”,“documents listed in item (4), paragraph 2, Article 4 of the Insurance Business Act (ActNo. 105 of 1995)” as “rules provided in paragraph 1, Article 216-3 of the Consumer
Livelihood Cooperative Association Act (Act No. 200 of 1948) as applied mutatis
mutandis pursuant to paragraph 2 of the same Article”, “statement of calculation
procedures” as “mutual aid business rules”, “premiums for liability insurance” as“premiums for liability mutual aid”, “improvement in liability insurance budgets” as“improvement in liability mutual aid budgets”, and “item (4) of the preceding Article” as“item (4) of the preceding Article as applied mutatis mutandis under paragraph 2 of thefollowing Article”.
3. The provisions of the preceding two Articles shall apply mutatis mutandis to common
facility cooperatives, etc. In such cases, “insurance companies” in these provisions shallbe read as “common facility cooperatives, etc.,”, “paragraph 1, Article 28-3” as“paragraph 1, Article 28-3 as applied mutatis mutandis under paragraph 4 of the same
Article”, “liability insurance business” as “liability mutual aid business”, “insurance
period” as “mutual aid period”, “liability insurance contracts” as “liability mutual aid,
re-mutual aid or retrocession-mutual aid contracts”, “documents listed in item (4),paragraph 2, Article 4 of the Insurance Business Act (Act No. 105 of 1995)” as “mutual
aid rules provided in paragraph 1, Article 9-6-2 of the Act on the Cooperative
Associations of Small and Medium Enterprises (Act No. 181 of 1949) (including cases
applied mutatis mutandis under paragraph 5, Article 9-9 of the same Act)”, “statement ofcalculation procedures” as “mutual aid rules”, “premiums for liability insurance” as“premiums for liability mutual aid”, “improvement in liability insurance budgets” as“improvement in liability mutual aid budgets”, and “item (4) of the preceding Article” as“item (4) of the preceding Article as applied mutatis mutandis under paragraph 3 of thefollowing Article”.
4. Notwithstanding the provisions of the preceding three paragraphs, when a cooperative thatbears mutual aid liability under a liability mutual aid contract (hereinafter “liability mutual
aid cooperative”) concludes a contract where whole of said mutual aid liability is coveredby re-mutual aid with other cooperatives, the cooperative that bears re-mutual aid liability
under such re-mutual aid contract (hereinafter “re-mutual aid cooperative”) may
accumulate, on behalf of the liability mutual aid cooperative that concluded said re-mutual
aid contract, the reserve funds provided in Article 1 as applied mutatis mutandis under thepreceding three paragraphs related to said liability mutual aid cooperative, and when are-mutual aid cooperative concludes a contract where whole of said re-mutual aid iscovered by retrocession-mutual aid with other cooperatives, the cooperative that bears
retrocession-mutual aid liability under such retrocession-mutual aid contract may

112

accumulate, on behalf of the re-mutual aid cooperative that concluded said
retrocession-mutual aid contract and the liability mutual aid cooperative that concluded
the re-mutual aid contract with said re-mutual aid cooperative, the reserve funds provided
in Article 1 as applied mutatis mutandis under the preceding three paragraphs related tosaid re-mutual aid cooperative and said liability mutual aid cooperative.

113

CABINET OFFICE ORDINANCE CONCERNING REPORTS TO
NON-LIFE INSURANCE RATING ORGANIZATIONS BY INSURANCECOMPANIES AND MUTUAL AID COOPERATIVES PROVIDED IN
PARAGRAPH 1, ARTICLE 29-2 OF THE AUTOMOBILE LIABILITY
SECURITY ACT(Ordinance of the Ministry of Finance No. 61, November 29, 1996)
History of Amendment
Ordinance of the Administrative Agency of the Cabinet and Ministry of Finance
No. 3, June 18, 1998
Ordinance of the Administrative Agency of the Cabinet
No. 65, June 26, 2000
No. 116, October 10, 2000
(Reports to non-life insurance rating organizations by insurance companies and cooperatives)
Article 1. Reports to non-life insurance rating organizations (meaning Non-Life Insurance
Rating Organizations designated by the Commissioner of the Financial Services Agency
as provided in paragraph 1, Article 29-2 of the Automobile Liability Security Act (Act No.
97 of 1955; hereinafter “the Act”); the same shall apply in the heading of the following
Article) by insurance companies (meaning insurers of liability insurance provided inparagraph 1, Article 6 of the Act; the same shall apply hereinafter) and cooperatives(meaning insurers of mutual aid liability as set forth in each of the items of paragraph 2,
Article 6 of the Act; the same shall apply hereinafter), as provided in paragraph 1, Article29-2 of the Act, shall be prepared in accordance with the attached Forms, in accordancewith the categories of Forms as set forth in each of the following items, in the manner
provided in each of said items.
(1) Attached Form No. 1 to Attached Form No. 8: Shall be compiled once monthly andreported within two months after the end of that month.
(2) Attached Form No. 9 to Attached Form No. 12: Shall be compiled once per businessyear (meaning the period from April 1 to March 31 of the following year; the same
shall apply hereinafter) and reported within four months after the end of that businessyear.
(Reports to non-life insurance rating organizations when cooperatives conclude re-mutual aid
contracts or retrocession-mutual aid contracts)
Article 2. When a cooperative that bears mutual aid liability for the automobile liability
mutual aid provided in Article 5 of the Act (hereinafter “liability mutual aid”) (hereinafter“liability mutual aid cooperative”) concludes a contract with a cooperative who covers
mutual aid liability borne under liability mutual aid contracts by its re-mutual aid,
whereby whole of the mutual aid liability borne by said liability mutual aid cooperative iscovered by said re-mutual aid cooperative, said liability mutual aid cooperative shall be114

regarded as having made the report in the preceding Article upon said re-mutual aid
cooperative making the report in the same Article pertaining to said re-mutual aid.
2. When a re-mutual aid cooperative concludes a contract with a cooperative who covers
re-mutual aid liability borne under re-mutual aid contracts (hereinafter“retrocession-mutual aid”) (hereinafter “retrocession-mutual aid cooperative”) by its
retrocession-mutual aid, whereby whole of the re-mutual aid liability borne by said
re-mutual aid cooperative is covered by said retrocession-mutual aid cooperative, said
re-mutual aid cooperative shall be regarded as having made the report in the preceding
Article upon said retrocession-mutual aid cooperative making the report in the same
Article pertaining to said retrocession-mutual aid.

115

116

1
2
3
4
5
6
7
8
9
10

Code No.

Item

Year and Monthof Filing

Type of
VehicleNumber of
VehiclesInsurance Company(Cooperative)

Contracts Subject To
Exceptional Measures

Insurance (Mutual Aid) Contract Report

Commencement of Insurance(Mutual Aid) Period
Year
Month

Prefecture,etc.

Category ofPremium Rate

Notes:(1) The Insurance (Mutual Aid) Term in the lower box shall be described as a number of months, provided however that contracts with aterm of 5 (five) days shall be expressed as 5D.
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Insurance (Mutual Aid)
PeriodContract Year

Attached Form No. 1 (Related to Article 1)

117

Item
Old

New

Prefecture, etc.

Category ofPremium Rate

Type of Vehicle
After Alteration
Year

Month

Year and Month ofContract Alteration

Insurance Company(Cooperative)

Year

Month

Commencement

PeriodInsurance (Mutual Aid) Term

Insurance (Mutual Aid) Contract Alteration Report
Correction

Notes:(1) The Insurance (Mutual Aid) Period shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Type of
Vehicle

1
2
3
4
5
6
7
8
9
10

Number of
VehiclesYear and Monthof Filing

Code No.

Contract Year

Attached Form No. 2 (Related to Article 1)

118

Old

New

Prefecture, etc.

Category ofPremium Rate

Year

Month

Expiration
PeriodInsurance (Mutual Aid) Period

Year

Month

Year andMonth ofContract
Alteration

Insurance (Mutual Aid) Contract Alteration Report
Surcharge

Surcharge
Premiums

Type of
Vehicle After
Alteration

Insurance Company(Cooperative)

Notes:(1) The Insurance (Mutual Aid) Period shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Type of
VehicleCode No.
1
2
3
4
5
6
7
8
9
10

Number of
VehiclesYear and Monthof Filing

Item

Contract Year

Attached Form No. 3 (Related to Article 1)

119

Item

Type of
Vehicle

Year

Month

Expiration of
Insurance (MutualAid) Period
Year

Month

Year and Month of
Death

Additional Premium Collection Report

Additional
Premiums

Default
Interest

Insurance Company(Cooperative)

Notes:(1) The Insurance (Mutual Aid) Period in the lower box shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Insurance (Mutual Aid)
Period12345Prefecture,etc.

Category ofPremium Rate

Number of
VehiclesYear and Monthof Filing

Code No.

Contract Year

Attached Form No. 4 (Related to Article 1)

120Type of
Vehicle

Year

Month

Year

Month

RefundedInsurance(Mutual Aid)
Premiums
Type of
Vehicle After
Alteration

Prefecture,etc., After
Alteration

Insurance Company(Cooperative)

Notes:(1) The Insurance (Mutual Aid) Period in the lower box shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Insurance (Mutual Aid)
Period

1
2
3
4
5
6
7
8
9
10

Code No.

Year and Month ofContract
Cancellation or
Alteration

Insurance Premium (Mutual Aid Premium) Refund Report

Expiration of
Insurance (MutualAid) Period

Category ofPremium Rate

Number of Prefecture,
Vehiclesetc.

Year and Monthof Filing

Item

Contract Year

Attached Form No. 5 (Related to Article 1)

121

5

4

3

2

Code No.
1

Item
Type of
VehicleCategory ofPremium Rate

Number of
VehiclesYear and Monthof Filing

Prefecture, etc.
Year

Month

Commencement
PeriodInsurance (Mutual Aid) Period

Insurance Company(Cooperative)

RefundedInsurance
Premiums(Mutual Aid
Premiums)

Insurance Premium (Mutual Aid Premium) Refund Report
Cancellation

Notes:(1) The Insurance (Mutual Aid) Period shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

Contract Year

Attached Form No. 6 (Related to Article 1)

122

Number of
Vehicles

Type of
VehiclePrefecture,etc.

Category ofPremium Rate

Year

Month

Commencement

Expiration
PeriodInsurance (Mutual Aid)
Period

Year

Month

Year and Month of
Death

Additional Premium Refund, etc. Report

Refunded Default
Interest

Refunded Additional
Premiums

Returned
Interest

Insurance Company(Cooperative)

Notes:(1) The Insurance (Mutual Aid) Period shall be described in accordance with Attached Form No. 1, Notes: (1).
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year
and month of filing.

5

4

3

2

1

Code No.

Item

Contract Year Year and Monthof Filing

Attached Form No. 7 (Related to Article 1)

123

Notes:

Nursing care fees

Travel expenses for outpatient visit
Miscellaneous expenses
Documentation fees
OthersLoss of income damages

Expenses related
to treatment

Average daily loss of earnings
Status of treatment
Total period of treatment
Days of hospitalization
Days of actual outpatient visits
Approved days of earning loss
Approved days of payment
Other party’s vehicle type
Other party’s degree of negligence
Joint tort
One-party or both-party process
Amount paid by other party
Treatment expenses andJudo Therapy expenses

Category of loss of earnings

Yes
MotherChild

FemaleApproximation

Both party

In progress

Limit applied
Fixed
OthersamountMerge

One party

Finished

None
Actualloss

No
FatherSpouseMale

Aggravation

FixedamountActual amountincurred

Hospital visit / home

Hospitalization
Hospital visit / home
Hospitalization

No. of partial payment installments
Claim paid for death or permanent disability
Claim paid for injury
Category of ancillary expenses
Re-examination
DefenseCompromise / mediation / judgment
CompromiseMediation

Partial payment installment no.

Nursingcare
feesAncillary expenses
Amount of re-insurance claim
Additional claims already paid
Rate of reduction for injury
Rate of reduction for death or permanent disability
Recovery or Return
Category of nursing care fees

Hospital visit
No. of days

Others
Judgment

Home
AmountInsurance Company(Cooperative)

Amount of claim investigated
Total
Other than below
BalanceBreak-down
Damages fordisability or deathAmount of claim approved by investigation
Non-concurrent insurance claim unpaid
Non-concurrent insurance claim paid
Total insurance payment
Provisional payment
Partial payments already received
Partial payment
Amount payable

Damages for death

Damager for pain and suffering
Subtotal
Damages for disability(1) For reports concerning automobile liability mutual aid, “insurance” shall be read as “mutual aid”.
(2) Reports shall be compiled for every year and month of filing and submitted no more than 2 (two) months after completion of the year and month of filing.

Permanent disability
Personal
Social or Workers
Compensation insurance
Company (cooperative) paying claim incl. Voluntary
Auto Insurance (mutual aid)
Prefecture, etc., where accident occurredType of accident
Sex of offending driver
Male
FemaleAge of at-fault driver
Out-of-court settlement
AgreedNot agreed
Early settlement

Date pf acceptance by company (cooperative)
Claim investigation completion date
Claim investigation department receipt No.
Claim investigation department
Claim investigation completion No.
Previous claim investigation department
Previous claim investigation completion No.
Victim No.
Date of payment
Type of accident
Death
InjuryNone
Accident report
Property

Date and time of accident

No. of entitled claimants for pain and suffering damages
State of victim

Entitled claimants for pain and suffering damages

Victim’s occupation
Dependants

Type of vehicle
Prefecture, etc.
Certificate No.
Date of contract
Commencement of insurance (mutual aid)
End of insurance (mutual aid)
Insurance (mutual aid) term

Aggravation / Merge / Approximation

Appendix List No. of the Cabinet Order on permanent
disability

Age of victim

Provisional

Additional
RecoveryRate category

PartialPartialProvisional

Grade after aggravation / merge / approximation
Grade before aggravation
Sex of victim

New
Insurance
ReturnCategory of previously
Insurance
reported payment
Year and month of filing
Company (cooperative) filing No.
Contract year

Payment category

Claim category

Automobile Liability Insurance (Mutual Aid) Payment Report

Attached Form No. 8 (Related to Article 1)

Attached Form No. 9 (Related to Article 1)
Insurance Company(Cooperative)
Statement of Accounts of Automobile Liability Insurance (Mutual Aid) Business
1. Fiscal

Profit and Loss of Automobile Liability Insurance (Mutual Aid)
(unit: thousand yen)

Item
Direct pure insurance premiums (direct pure mutual aid premiums)
Reinsurance (insurance) premiums paid
Sales expenses (business promotion expenses)
Claim investigation expenses
Administrative expenses
Commissions and money collecting expenses
Corporate expenses income (expenditure income)Amount

1. Direct pure insurance (mutual aid) premiums shall be the amount of insurance (mutual aid)premiums received from policyholders.
2. Reinsurance (insurance) premiums paid shall be the amount of pure insurance (mutual aid)premiums that are direct pure insurance (mutual aid) premiums.
3. Corporate expenses income (expenditure income) shall be calculated by subtracting reinsurance(insurance) premiums paid, commissions and money collecting expenses from direct pure
insurance (mutual aid) premiums.

2. Breakdown of Principal Account Balances (as of March 31st, ______ ) (unit: thousand yen)
Real Estate and Movable Assets
Land (except for investment purpose)
Buildings (except for investment purpose)
Subtotal
Movable assets
Construction temporary accountTotal

AmountAccrued employees retirement benefit

3. Fiscal

Number of Automobile Liability Insurance (Mutual Aid) Cases Handled
Breakdown

No. of cases

Contractrelated

New contract
Cancellation
Alteration, cancellation, etc.
Total
Payment- Insurance
Not incl. Voluntary Auto Insurance (Mutual Aid)
related(mutual aid) claim Incl. Voluntary Auto Insurance (Mutual Aid)
Provisional payment
Partial payment
Total
Cases where collection of premiums was entrusted to financial institutions
1. The number of cases used as the basis for calculating the expenditure of automobile liability
insurance (mutual aid) business shall be stated.
2. “Alteration, cancellation, etc.” shall include cases of additional premium for death and certificate
reissue.
Note: Reports shall be submitted within 4 (four) months after the end of the business year (meaning
the period from April 1st to March 31st of the following year).

124

Attached Form No. 10 (Related to Article 1)
Insurance Company(Cooperative)
FiscalAutomobile Liability Insurance (Mutual Aid) Business Expenditure Report

Item
Officers’ salaries
Administrative divisions
Employees’ Operational divisions(staff)(except administrative staff)
Salaries
Operational divisions(administrative staff)
Retirement pay and pensions
Welfare expenses
Personnel expenses subtotal
Land and building rents
Machine hire fees
Transportation expenses
Communication expenses
Printing expenses
Book expenses
Consumables
Fixture and fittings expenses
Repairs and utilities expenses
Membership fees
Meeting expenses
Advertising expenses
Miscellaneous expenses
Non-personnel expenses subtotal
Expenses total
Business tax
Fixed asset tax
Increment in accrued employees
retirement benefit
Other
Vehicle taxes
business Land values tax
expenses
Business office tax
Depreciation expenses
Consumption tax
Subtotal
Grand total
Commissions and money collecting expenses

Administrative
Divisions(unit: thousand yen)
Operational
Total
Divisions

Notes:(1) Sales expenses (business promotion expenses), loss adjustment expenses and generalmanagement expenses shall all be described in a different form.
(2)

(3)
(4)

General management expenses shall not be included in administrative or operational divisions.

Salaries for direct sales employees, money collecting employees, labor employees,
temporary employees, part-time employees and others shall be accounted under
Personnel Expenses.
Reports shall be submitted within 4 (four) months after the end of the business year
(meaning the period from April 1st to March 31st of the following year).

125

Attached Form No. 11 (Related to Article 1)
Insurance Company(Cooperative)
FiscalAutomobile Liability Insurance (Mutual Aid) Business Reserve Funds Report

1. Status of Reserve Funds(unit: thousand yen)AmountItem
Mandatory Reserve Fund at term end
Net income pure insurance (mutual aid) premiums
Current Term Payment Reserve Fund
Adjustment Reserve Fund at term end
Current term transfers to (drawing down from)
Adjustment Reserve FundTax-equivalent amount related to
Adjustment Reserve Fund transfers (drawing down)
Investment Yield Reserve Fund at term end
Drawing down from investment yield to improve
revenue-cost balance
Expense Loading Reserve Fund at term end
Net income pure insurance (mutual aid) premiums shall be the amount used as the basis
for calculating Mandatory Reserve Funds.

2. Investment Yield Reserve Fund
Item
Investment capital
Current term profit from investments
Interest rate applied
Anticipated interest from long-term contracts
Investment expenses
Tax
Tax rate
Current term investment profit contributions (without tax)
Tax amount recovered
Current term investment profit contributions (with tax)
Drawing down to improve revenue-cost balanceTax amount recovered(unit: thousand yen, %)Amount

3. Expense Loading Reserve Fund
Item
Current term balance of corporate expenses (expenditure)
Tax
Investment capital for interest calculation
Interest accruing
Tax
Current term drawing down
Current term transfers(unit: thousand yen)AmountNote:
Reports shall be submitted within 4 (four) months after the end of the business year
(meaning the period from April 1st to March 31st of the following year).

126

Attached Form No. 12 (Related to Article 1)
Insurance Company(Cooperative)
FiscalAutomobile Liability Compensation Business Expenditure Report

Item
Officers’ salaries
Administrative divisions
Employees’
Operational divisions(staff)(except administrative staff)
salaries
Operational divisions(administrative staff)
Retirement pay and pensions
Welfare expenses
Personnel expenses subtotal
Land and building rents
Machine hire fees
Transportation expenses
Communication expenses
Printing expenses
Book expenses
Consumables
Fixtures and fittings expenses
Repairs and utilities expenses
Membership fees
Meeting expenses
Advertising expenses
Miscellaneous expenses
Non-personnel expenses subtotal
Expenses total
No. of compensation
business cases received

Loss
Adjustment
Expenses(unit: thousand yen)
GeneralManagement
Total
Expenses

From April to the following March
From February to the following January

Notes:(1) Salaries for direct sales employees, money collecting employees, labor employees,
temporary employees, part-time employees and others shall be accounted under
Personnel Expenses.
(2) Reports shall be submitted within 4 (four) months after the end of the business year
(meaning the period from April 1st to March 31st of the following year).

127

SPECIFICATION OF NON-LIFE INSURANCE RATING ORGANIZATIONDESIGNATED BY THE MINISTER OF FINANCE AS AN
ORGANIZATION THAT CALCULATES LIABILITY INSURANCEPREMIUM RATES BASED ON THE PROVISIONS OF PARAGRAPH 1,
ARTICLE 29-2 OF THE AUTOMOBILE LIABILITY SECURITY ACT(Notification of the Ministry of Finance No. 337, November 29, 1996)
History of Amendment
Notification of the Financial Services Agency
No. 63, December 19, 2000
The following non-life insurance rating organization designated by the Commissioner of
the Financial Services Agency shall be specified as a body that calculates liability insurance
premium rates based on the provisions of paragraph 1, Article 29-2 and paragraph 1, Article
84 of the Automobile Liability Security Act (Act No. 97 of 1955), with effect from December
1, 1996.
Automobile Insurance Rating Organization of Japan (AIRO)

128

AUTOMOBILE LIABILITY INSURANCE COUNCIL ORDER(Cabinet Order No. 264, June 7, 2000)(Organization)
Article 1. The Automobile Liability Insurance Council (hereinafter “the Council”) shallconsist of 13 (thirteen) Members.
2. The Council may appoint Special Members whenever necessary in order to investigate anddeliberate special matters.
(Appointment of members, etc.)
Article 2. Members shall be appointed from the persons set forth below.
(1) Persons with academic knowledge and experience: 7 (seven) persons(2) Persons with profound knowledge and experience of automobile transport or
accidents: 3 (three) persons(3) Persons with profound knowledge and experience of insurance business: 3 (three)persons
2. Special Members shall be appointed by the Commissioner of the Financial Services
Agency from among persons with academic knowledge and experience.
(Term of office, etc., of members)
Article 3. The term of office of Members shall be 2 (two) years, provided however that theterm of office of replacement Members shall be the remaining term of their predecessors.
2. Members may be re-appointed.
3. Special Members shall be dismissed when the investigation on special matters related totheir appointment is complete.
4. Members and Special Members shall be appointed on a part-time basis.
(Chairman)
Article 4. A Chairman shall be appointed to the Council, and shall be co-opted from among
the Members.
2. The Chairman shall preside over the affairs of the Council and shall represent the Council.
3. In the absence or disability of Chairman, a Member nominated in advance shall execute
the Chairman’s duties on behalf of the Chairman.
(Matters for deliberation)
Article 5. The Council may not hold meetings or adopt resolutions without the presence of amajority of the Members.
2. Matters for deliberation by the Council shall be decided by a majority of the Members inattendance at a meeting, and should there be no majority, the decision shall be made by
the casting vote of the Chairman.
(Requests for submission of materials, etc.)
Article 6. The Council may, when deeming it necessary in order to execute the affairs under
its jurisdiction, request the submission of materials, statement of opinions, explanations,129

or other necessary cooperation from the head of a relevant administrative organ.
(General affairs)
Article 7. The general affairs of the Council shall be processed by the Insurance Business
Division of the Supervisory Bureau, Financial Services Agency.
(Miscellaneous provisions)
Article 8. Besides those provided in this Cabinet Order, procedures for deliberation and othernecessary matters concerning the management of the Council shall be prescribed by the
Chairman after consulting the Council.

130

ACT ON SPECIAL ACCOUNTS [Excerpt](Act No. 23 of March 31, 2007)
Latest Amendment: Act No. 37 of 2010
CHAPTER I. GENERAL PROVISIONS
Section 1. General Rules(Purpose)
Article 1. The purpose of this Act shall be to establish Special Accounts to be accounted
separately from the General Account, and to determine their purpose as well as rules fortheir management and accounting.
(Establishment)
Article 2. The Special Accounts listed below shall be established.
(17) Automobile Safety Special Account
2. The purpose and rules for management and accounting of the Special Accounts listed ineach item of the preceding paragraph shall be as provided in the following Chapter.
Section 2. Budgets(Preparation and sending of estimated revenue and expenditure calculations, etc)
Article 3. Each fiscal year, the competent Minister (meaning the head of each Ministry or
Agency (meaning the head of a Ministry or Agency as stipulated in paragraph 2, Article
20 of the Public Finance Act (Act No. 34 of 1947) that manages a Special Account); thesame shall apply hereinafter) must prepare estimated revenue and expenditure calculations,request for carryover of expenditures and request for extra expenditure from nationaltreasury (hereinafter “estimated revenue and expenditure calculations, etc.”) for theSpecial Account managed by the same, and must refer these to the Minister of Finance.
2. The documents specified below must be attached to the estimated revenue andexpenditure calculations, etc.
(1) For extra expenditure from national treasury that continue into the following fiscal
year, the amount of disbursements up to the end of the last fiscal year and theestimated amount of future disbursements, the scheduled amount of disbursementsfrom the current fiscal year onwards, and, for disbursements associated with extra
expenditure from national treasury that continues across a number of fiscal years, theplans and progress status of said projects, and other records concerning the executionof said extra expenditure from national treasury.
(2) An itemized statement of reserves at the end of the second last fiscal year.
(3) Performance charts related to capital increases or decreases in the second last fiscal
year.
(4) Projection charts related to capital increases or decreases in the last fiscal year andthe current fiscal year.

131

(5) Projection charts for borrowings and repayments scheduled for the current fiscal
year.
(6) In addition to the documents listed in each of the preceding items, documents thatmust be attached to estimated revenue and expenditure calculations, etc., as
stipulated in the following Chapter.
(Revenue and expenditure budget divisions)
Article 4. The revenue and expenditure budget for each Special Account (or, for Special
Accounts divided into smaller Accounts, each Account; the same shall also apply hereafterin this Chapter, excluding paragraph 1 of the following Article, paragraph 1, Article 9, andparagraphs 1 and 3, Article 10 shall be divided by titles and items according to the natureof revenues, and by items according to the purpose of expenditures, respectively.
(Budget preparation and submission)
Article 5. In each fiscal year, the Cabinet must prepare a budget for each Special Account andsubmit it to the Diet together with the General Account budget.
2. Estimated revenue and expenditure calculations, etc., and the documents listed in each
item of paragraph 2, Article 3 must be attached to the budget for each Special Account.
(Transfers from the General Account)
Article 6. Of the expenditure pertaining to administrative work and projects accounted undereach Special Account, expenditure to be covered by transfers from the General Account(hereinafter “expenditure covered by General Account transfers”) may, in the cases
provided in the following Chapter, be transferred from the General Account to the Special
Account in question, as provided in the Budget, but only when necessary to provide funds
for expenditure covered by General Account transfers.
(Elasticity clause)
Article 7. In each Special Account, should it become necessary to increase expenditure due toreasons provided in the Budget, in light of the purpose of said Special Account, and when
an increase in income to cover said expenditure can be secured for reasons provided in the
Budget, said expenditure may be increased up to the amount of said increase in income.
2. The provisions of paragraphs 2 to 4, Article 35 and Article 36 of the Public Finance Act
shall apply mutatis mutandis to any increase in expenditure under the provisions of thepreceding paragraph. In this case, “the head of each Ministry or Agency deems it
necessary to use expenditure reserves” in paragraph 2, Article 35 of said Act shall be readas “the competent minister (meaning the head of each Ministry or Agency that manages aSpecial Account); the same shall apply in paragraph 1 of the following Article) deems it
necessary to increase expenditure pursuant to paragraph 1, Article 7 of the Act on Special
Accounts (Act No. 23 of 2007)”, “record of the use of expenditure reserves” in paragraph
3 of said Article as “record of increased expenditure”, “record of the use of expenditure
reserves” in paragraph 4 of said Article as “record of increased expenditure”, “said recordof use” in said paragraph as “said record of increase”, “amount paid using expenditure
reserves” in paragraph 1, Article 36 of said Act as “increased expenditure pursuant to132

paragraph 1, Article 7 of the Act on Special Accounts”, “the head of each Ministry or
Agency” in said paragraph as “the competent minister”, “amount paid using expenditure
reserves” in paragraph 2 of said Article as “increased expenditure pursuant to paragraph 1,
Article 7 of the Act on Special Accounts”, “paid using expenditure reserves” in paragraph
3 of said Article as “in the preceding paragraph”, and “each Ministry and Agency” in said
paragraph as “each Special Account”.
Section 3. Settled Accounts(Processing of surplus)
Article 8. In each Special Account, should any surplus arise from the settled revenues andexpenditures for each fiscal year, they shall be transferred to revenues of said Special
Account for the next fiscal year, when there is still a remainder after subtracting theamount accumulated as reserves of said Special Account and the amount incorporated into
capital, as provided in the following Chapter, from said surplus.
2. Irrespective of the provisions of the preceding paragraph, an amount equivalent to all orpart of the amount to be transferred to revenues for the next fiscal year in said paragraphmay be transferred to revenues of the General Account, as provided in the Budget.
(Preparation and sending of final revenue and expenditure calculations)
Article 9. In each fiscal year, the competent minister must prepare final revenue andexpenditure calculations for the Special Account managed by the same, under the same
categories as used for the estimated revenue and expenditure calculations, and shall refer
the same to the Minister of Finance.
2. The documents listed below must be attached to final revenue and expenditurecalculations.
(1) Calculations pertaining to debts(2) An itemized statement of reserves at the end of the current fiscal year
(3) Performance charts related to capital increases or decreases in the current fiscal year.
(4) In addition to the documents listed in the preceding three items, documents that mustbe attached to final revenue and expenditure calculations in accordance with thefollowing Chapter.
(Preparation and submission of settled revenues and expenditures)
Article 10. In each fiscal year, the Cabinet must prepare settled revenues and expenditures foreach Special Account based on the final revenue and expenditure calculations, and submit
the same to the Diet together with the settled revenues and expenditures for the General
Account.
2. Final revenue and expenditure calculations and the documents listed in each item ofparagraph 2 of the preceding Article must be attached to the settled revenues andexpenditures for each Special Account.
3. When applying the provisions of paragraph 2, Article 38 of the Public Finance Act to thesettled revenues and expenditures for each Special Account, “(2) The amount carried overin the last fiscal year” in said paragraph shall be read as “(2) The amount carried over in133the last fiscal year, (2-2) The amount of increase in expenditure pursuant to paragraph 1,
Article 7 of the Act on Special Accounts (Act No. 23 of 2007)”.
Section 4. Deposit of Surplus Funds, etc.
(Deposit of surplus funds)
Article 11. In each Special Account, any cash surplus arising in connection with payments
may be deposited in the Fiscal Loan Fund.
(Deposits of reserves and capital)
Article 12. Reserves and capital in each Special Account may be deposited in the Fiscal Loan
Fund for investment.
Section 5. Borrowings, etc.
(Borrowings)
Article 13. When expenditure to be made subject to borrowings in each Special Account(hereinafter “expenditure funded by borrowings”) is provided in the following Chapter,borrowings may be made and charged to said Special Account, within the limits necessary
in order to pay expenditure funded by borrowings.
2. The upper limit of borrowings that may be made in each Special Account must be decided
by a resolution of the Diet based on the Budget.
(Carrying over of borrowing limits)
Article 14. In each Special Account, of an amount decided by a resolution of the Diet
concerning the limit of borrowings, when there is an amount that was not borrowed in thecurrent fiscal year, borrowings may be made in the following fiscal year, pursuant toparagraph 1 of the preceding Article, up to the limit of that amount and within the scope of
the amount needed as funds for amounts to be carried over in the Budget (limited to thosepertaining to expenditure funded by borrowings).
(Temporary borrowings, etc)
Article 15. Temporary borrowings may be charged to each Special Account, financing
securities may be issued, or treasury surpluses may be diverted and used whenever there isa cash deficiency in connection with payments in said Special Account, provided, however,that financing securities may only be issued when there is a provision in the following
Chapter to the effect that such issue can be made.
2. The upper limit of temporary borrowings, financing securities and diverted moneys under
the provisions of the preceding paragraph must be decided by a resolution of the Diet
based on the Budget.
3. When temporary borrowings are made or financing securities are issued under theprovisions of paragraph 1, treasury surpluses may be diverted and used, and temporary
borrowings or financing securities that have not reached their payment deadlines may berepaid.
4. Temporary borrowings, financing securities and diverted moneys under the provisions of134paragraph 1, as well as diverted moneys under the provisions of the preceding paragraph,must be returned or repaid using revenues from the current fiscal year.
5. When there is a cash deficiency in connection with payments in each Special Accountunder the provisions of paragraph 1, cash belonging to the reserves or capital of said
Special Account or other cash may only be diverted and used when there is a provision in
the following Chapter to the effect that said cash may be diverted and used. In this case,the competent minister must obtain the approval of the Minister of Finance in advance.
6. Moneys diverted under the provisions of the preceding paragraph must be returned before
the conclusion of receipt and disbursement for the current fiscal year.
(Administrative work for borrowings, etc)
Article 16. Administrative work related to borrowings, repayments and temporary borrowings
charged to each Special Account, as well as the issue and repayment of financing
securities, shall be performed by the Minister of Finance.
(Transfers to the National Debt Consolidation Fund Special Account)
Article 17. Amounts needed for repayments and interest on borrowings charged to eachSpecial Account, as well as interest on temporary borrowings and financing securities andpayments of miscellaneous expenses related to the issue and repayment of financing
securities, must be transferred from said Special Account to the National Debt
Consolidation Fund Special Account each fiscal year.
Section 6. Carrying Over
Article 18. In each Special Account, outstanding payments in the expenditure budget in eachfiscal year or the budget pertaining to expenditures that are due for payment but have notbeen paid upon the closure of receipt and disbursement for the current fiscal year may be
carried over to the next fiscal year, limited to cases in which there is a provision in thefollowing Chapter to the effect that they may be carried over and used in the following
fiscal year and beyond.
2. When expenditures have been carried over as in the preceding paragraph, the competent
minister must notify the Minister of Finance and the Board of Audit to that effect.
3. When expenditures have been carried over by the competent minister as in the preceding
paragraph, the expenditure carried over shall be regarded as having been subject to budget
allocation pursuant to paragraph 1, Article 31 of the Public Finance Act. In this case,notification pursuant to paragraph 3 of said Article shall not be necessary.
Section 7. Disclosure of Financial Information(Documents used as reference for corporate accounting practices)
Article 19. In each fiscal year, the competent minister must prepare documents to disclose thestatus of assets and liabilities, as well as other financial information concerning settlement
for the Special Account managed by the same, referring to practices of corporate
accounting, and must send the same to the Minister of Finance.

1352. The Cabinet must submit the documents listed in the preceding paragraph to the Diet,
following inspection by the Board of Audit.
3. The method of preparing the documents listed in paragraph 1 and other necessary mattersconcerning said documents shall be specified by Cabinet Order.
(Disclosure of financial information)
Article 20. The competent minister must, for the Special Account managed by the same,
disclose information described in the documents listed in paragraph 1 of the preceding
Article, and other information provided by Cabinet Order as information thatappropriately indicates the financial status of the Special Account, using the Internet or
another appropriate method.
CHAPTER II. THE PURPOSE AND RULES FOR MANAGEMENT AND
ACCOUNTING OF EACH SPECIAL ACCOUNT
Section 17. Automobile Safety Special Account(Purpose)
Article 210. The purpose of the Automobile Safety Special Account shall be to clarify
government accounting with regard to the Automobile Liability Compensation Businessas well as automobile inspection, registration and other administrative work.
2. “Automobile Liability Compensation Business” in this Section means Automobile
Liability Compensation Business pursuant to the Automobile Liability Security Act (ActNo. 97 of 1955; hereinafter in this Section “ALS Act”).
3. Automobile inspection, registration and other administrative work” in this Section means
the inspection and registration of automobiles, as well as the designation of designatedautomobile maintenance business pursuant to the Road Transport Vehicle Act (Act No.
185 of 1951), and the administrative work of confirming tax payments and approving tax
amounts for motor vehicle tonnage tax pursuant to the Motor Vehicle Tonnage Tax Act(Act No. 89 of 1971).
(Management)
Article 211. The Automobile Safety Special Account shall be managed by the Minister ofLand, Infrastructure, Transport and Tourism, as provided in laws and regulations.
(Account divisions)
Article 212. The Automobile Safety Special Account shall be divided into the Security
Account and the Automobile Inspection and Registration Account.
(Revenues and expenditures)
Article 213. Revenues and expenditures in the Security Account shall be as follows.
(1) Revenues(a) Those corresponding to Automobile Liability Compensation BusinessContribution pursuant to Article 78 of the ALS Act and Automobile Liability
Compensation Business Contribution pursuant to paragraph 1, Article 82 of the136

ALS Act(b) Transfers from the General Account(c) Income from the exercise of rights based on the provisions of Article 76 of the
ALS Act(d) Negligence fines pursuant to Article 79 of the ALS Act(e) Subsidiary miscellaneous income(2) Expenditures(a) Payments pursuant to paragraphs 1 and 2, Article 72 of the ALS Act(b) Transfers to the Automobile Inspection and Registration Account(c) Interest on temporary borrowings(d) Miscellaneous expenses
2. Revenues and expenditures in the Automobile Inspection and Registration Account shallbe as follows.
(1) Revenues(a) Income from the sale of automobile inspection and registration revenue stamps(b) Commissions under the proviso to paragraph 3, Article 102 of the Road
Transport Vehicle Act(c) Transfers from the General Account(d) Payments received pursuant to paragraph 3, Article 16 of the National Traffic
Safety and Environment Laboratory Act (Act No. 207 of 1999) and paragraph 3,
Article 16 of the National Agency of Vehicle Inspection Act (Act No. 218 of
1999)(e) Transfers from the Security Account(f) Borrowings(g) Subsidiary miscellaneous income(2) Expenditures(a) Business handling expenditure pertaining to Automobile Liability
Compensation Business and automobile inspection, registration and otheradministrative work(b) Facility expenditure pertaining to automobile inspection, registration and otheradministrative work(c) Capitalization, grants and subsidies for facility maintenance of the National
Traffic Safety and Environment Laboratory and the National Agency of Vehicle
Inspection(d) Transfers to the General Account(e) Repayments and interest on borrowings(f) Interest on temporary borrowings(g) Subsidiary miscellaneous expenses(Documents attached to estimated revenue and expenditure calculations, etc)
Article 214. In addition to the documents listed in items (1) to (5), paragraph 2, Article 3, in
the Security Account, the balance sheet and profit and loss statement from the second last137

fiscal year as well as the estimated balance sheet and estimated profit and loss statement
for the last fiscal year and the current fiscal year must be attached to estimated revenue
and expenditure calculations, etc.
(Expenditure covered by General Account transfers)
Article 215. Expenditure covered by General Account transfers in the Security Account shallbe expenditure needed to execute work in Automobile Liability Compensation Businesspursuant to paragraph 2, Article 82 of the ALS Act.
2. Expenditure covered by General Account transfers in the Automobile Inspection andRegistration Account shall be expenditure needed for the administrative work ofconfirming payments of motor vehicle tonnage tax and approving tax amounts.
(Transfers from the Security Account to the Automobile Inspection and Registration Account)
Article 216. To provide funds for business handling expenditure pertaining to Automobile
Liability Compensation Business, an amount equivalent to said business handlingexpenditure shall be transferred from the Security Account to the Automobile Inspection
and Registration Account in each fiscal year, as provided in the Budget.
(Transfers to the General Account)
Article 217. To provide funds for administrative handling expenditure needed for automobile
inspection, registration and other administrative work undertaken in Okinawa Prefectureby the Government, an amount equivalent to said administrative handling expenditure
shall be transferred from the Automobile Inspection and Registration Account to theGeneral Account in each fiscal year, as provided in the Budget.
(Processing of profits and losses)
Article 218. In the Security Account, profits or losses arising from profit and loss calculations
in each fiscal year shall be carried over and organized in the following fiscal year.
(Documents attached to final revenue and expenditure calculations)
Article 219. In addition to the documents listed in items (1) to (3), paragraph 2, Article 9, thebalance sheet and profit and loss statement for the current fiscal year must be attached to
final revenue and expenditure calculations in the Security Account.
(Expenditure funded by borrowings)
Article 220. Expenditure funded by borrowings in the Automobile Inspection andRegistration Account shall be, of automobile inspection, registration and otheradministrative work, expenditure needed for the maintenance of automobile registration
files and electronic information processing system managed by the Minister of Land,
Infrastructure, Transport and Tourism pursuant to paragraph 2, Article 6 of the Road
Transport Vehicle Act.
(Transfer and use of cash belonging to the Security Account)
Article 221. In the Automobile Inspection and Registration Account, cash belonging to the
Security Account may be diverted and used.

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ORDER FOR ENFORCEMENT OF THE ACT ON SPECIAL ACCOUNTS[Excerpt](Cabinet Order No. 124 of March 31, 2007)
Latest Amendment: Cabinet Order No. 206 of 2010
CHAPTER I. GENERAL PROVISIONS
Section 3. Budgets and Settlement of Account(Content and deadline for referral of estimated revenue and expenditure calculations, etc)
Article 8. In the estimated revenue and expenditure calculations for each Special Account (or,for Special Accounts divided into smaller Accounts, each Account; the same shall also
apply hereinafter, excluding paragraph 5 below and paragraph 1 of the following Article,
as well as Article 10, Article 32, paragraph 2, Article 34, and item (1), paragraph 1 andparagraph 2 of Article 36), in the case of revenues, amounts must be divided into titles anditems according to the nature of said revenues, the amounts in each item must be further
divided into different sub-items and the reason for estimates and the basis for calculations
must be shown, while in the case of expenditures, amounts must be divided into different
matters and an explanation of expenditure requests, the item amounts for said matters, andother details must be shown.
2. Request for carryover of expenditure for each Special Account must make clear, for eachmatter included in carryover of expenditure, the reason why said matter is necessary, andmust show the names of expenditure items that need to be carried over.
3. Requests for extra expenditure from national treasury in each Special Account must makeclear, for each matter included in the national treasury subsidized project (or for each
works project, in the case of multipurpose dam construction works and others belonging
to the Flood Control Account of the Social Infrastructure Development Projects Special
Account (meaning multipurpose dam construction works and others as stipulated inparagraph 1, Article 209 of the Act; the same shall apply hereinafter) or designated port
and harbor facility works and others belonging to the Ports and Harbors Account of said
Special Account (meaning designated port and harbor facility works and others listed inparagraph of said Article; the same shall apply hereinafter)) the reason why said matter isnecessary, as well as the fiscal year when the matter will be undertaken and the upper limitof subsidization, and must also indicate the fiscal year when disbursement should be madebased on this, the prospective period or the annual allocated amount, if necessary.
4. Explanations of all estimated revenues and expenditures for each Special Account must be
added to the estimated revenue and expenditure calculations for said Special Account.
5. Estimated revenue and expenditure calculations, request for carryover of expenditure andrequests for extra expenditure from national treasury for each Special Account must be
referred to the Minister of Finance, following the example in the provisions of paragraph
5, Article 11 of the Order for Budget Settlement and Public Accounts (Imperial Ordinance139No. 165 of 1947; hereinafter “the Ordinance”).
6. In addition to the documents listed in each item of paragraph 2, Article 3 of the Act,
records concerning matters that need to be stipulated in the General budget provisions
must be attached to the documents stipulated in the preceding paragraph.
(Itemized statements of estimated revenue and expenditure amounts)
Article 9. The competent minister (meaning the competent minister as stipulated in paragraph
1, Article 3 of the Act; the same shall apply hereinafter) must prepare itemized statementsof estimated revenue and expenditure amounts for the Special Account managed by thesame, as provided by the Minister of Finance, based on the revenue and expenditurebudget, and must refer the same to the Minister of Finance immediately after thesubmission of the Budget to the Diet.
2. In the itemized statements of estimated revenue and expenditure amounts stipulated in thepreceding paragraph, the amount of each item must be divided into sub-items, and, if
necessary, the amounts in each sub-item must also be subdivided and the basis for thesecalculations must be shown.
3. Divisions into sub-items and subdivisions of each sub-item under the provisions of thepreceding paragraph shall be provided by the competent minister who manages
administrative work concerning said revenue or expenditure, following discussion with
the Minister of Finance.
(Deadline for referral of final revenue and expenditure calculations)
Article 10. The final calculations of revenues and expenditures for each Special Account must
be referred to the Minister of Finance by July 31 of the following fiscal year.
(Forms of balance sheets, etc)
Article 11. The forms used for the balance sheet, profit and loss statements and asset
inventories for each Special Account shall be provided by the competent minister
following discussion with the Minister of Finance.
Section 4. Expenditure(Balance of direct payments)
Article 13. In each Special Account (except the National Debt Consolidation Fund Special
Account), the amount of paid-in revenues for the current fiscal year, as well as temporary
borrowings, income and diverted moneys arising from the issue of financing securities
pursuant to paragraph 1, Article 15 of the Act, diverted moneys pursuant to paragraph 3 ofsaid Article and diverted moneys pursuant to paragraph 5 of said Article shall be taken as
the balance of direct payments, and this balance of direct payments may not be exceededin order to disburse expenses.
Section 7. Books(Books of each Ministry and Agency)
Article 26. Each Ministry and Agency (meaning ministries and agencies as stipulated in

140Article 21 of the Public Finance Act (Act No. 34 of 1947); the same shall apply inparagraph 1 of the following Article) must furnish a journal, registry and subsidiaryregistry for the Special Account managed by the same, and must register all calculations
related to said Special Account therein.
Article 27. In addition to the books stipulated in paragraph 1 of the preceding Article andArticle 130 of the Order, each Ministry and Agency must also furnish a balance of direct
payments registry for the Special Account managed by the same (except the Local
Allocation and Local Transfer Tax Special Account, the National Debt Consolidation
Fund Special Account and the Energy Conservation Special Account), and must register
the balance of direct payments, the amount of disbursed expenditure and the remainingbalance of undisbursed payments therein, provided however that, when government
disbursing officers (meaning government disbursing officers stipulated in item (2) , Article
1 of the Order; the same shall apply hereinafter) consist of only one person, the balance of
direct payments registry need not be furnished.
(Books of government disbursing officers)
Article 30. In addition to the books stipulated in Article 132 and Article 134 of the Order,
government disbursing officers for each Special Account (except the National Debt
Consolidation Fund Special Account) must also furnish a balance of direct payments
registry, and must register the balance of direct payments, the amount of disbursed
expenditure and the remaining balance of undisbursed payments therein.
(Forms of books and method of entry)
Article 31. The forms to be used for the books stipulated in Article 26, Article 27, paragraph 1,
Article 28, paragraphs 2 and 4, Article 29 as well as the preceding Article, and the methodof entry therein, shall be provided by the Minister of Finance.
Section 8 Disclosure of Financial Information(Method of preparing documents, etc)
Article 34. The documents for each Special Account listed in paragraph 1, Article 19 of the
Act shall be documents that describe the status of assets and liabilities in said Special
Account at the end of the current fiscal year, as well as the status of expenses arising in
the current fiscal year and other matters specified by the Minister of Finance.
2. In addition to the documents described in the preceding paragraph, for Special Accounts
divided into smaller Accounts, documents that record matters stipulated in said paragraphshall also be prepared for the whole of said Special Account.
3. In addition to the documents described in paragraph 1 above, in the case of corporations
listed below that fall under conditions provided by the Minister of Finance as corporations
having a close relationship with the administrative work and projects accounted for inSpecial Accounts, documents that describe matters stipulated in said paragraph shall also
be prepared collectively for said Special Account and said corporation.
(1) Corporations directly established in accordance with acts141

(2) Corporations that are to be established through special acts of establishment inaccordance with special acts
(3) Corporations that are established in accordance with special acts and require theapproval of an administrative agency for their establishment
4. Documents listed in paragraph 1 and the preceding paragraph concerning the Local
Allocation and Local Transfer Tax Special Account shall be prepared by the Minister forInternal Affairs and Communications, and documents listed in the preceding threeparagraphs concerning the Energy Conservation Special Account by the Minister of
Economy, Trade and Industry, respectively. In this case, the preparation of documents
listed in the preceding three paragraphs concerning the Energy Conservation Special
Account shall be prepared by the head of a general administrative department on behalfof the Minister of Economy, Trade and Industry.
(Deadline for referral of documents, etc)
Article 35. The documents listed in paragraph 1, Article 19 of the Act must be referred to the
Minister of Finance by October 31 of the following fiscal year.
2. The Cabinet must refer the documents listed in the preceding paragraph to the Board ofAudit by November 15 of the fiscal year stipulated in said paragraph.
3. The Cabinet shall regularly submit the documents listed in the preceding paragraph,following inspection by the Board of Audit, to the Diet during the ordinary session
starting in the fiscal year stipulated in paragraph 1.
(Content of information disclosure)
Article 36. Information to be specified by Cabinet Order as stipulated in Article 20 of the Act
shall be as listed below.
(1) Information concerning Special Accounts as listed below(a) The purpose of the Special Account(b) The content of administrative work and projects accounted for in the Special
Account and an outline of the accounting method(2) Information listed below concerning the budget for the Special Account in each fiscal
year(a) An outline of the revenue and expenditure budget(b) The amount of transfers from the General Account and the reason for saidtransfers(c) The amount of borrowings as well as income from the issue of public bonds andsecurities (hereinafter in this paragraph referred to collectively as “borrowings,
etc.”) as well as the reason why borrowings, etc., are necessary(d) Other matters deemed necessary in light of the content of administrative workand projects accounted for in the Special Account(3) Information listed below concerning settlement of account for the Special Account ineach fiscal year(a) An outline of settled revenues and expenditures(b) The amount of transfers from the General Account and, if said amount differs

142

from the amount included in the Budget, the reason(c) The amount of borrowings, etc., and, if said amount differs from the amountincluded in the Budget, the reason(d) The amount of surplus in settled revenue and expenditure, the reason for said
surplus and the method of processing said surplus(e) The balance of reserves and capital at the end of the current fiscal year(f) Other matters deemed necessary in light of the content of administrative workand projects accounted for in the Special Account
2. In the cases listed in the preceding paragraph, for Special Accounts divided into smaller
Accounts, information provided in item (1) of said paragraph shall also be prepared forthe whole of said Special Account.
3. Information listed in paragraph 1 concerning the Local Allocation and Local Transfer Tax
Special Account shall be prepared by the Minister for Internal Affairs andCommunications, and information listed in the preceding two paragraphs concerning theEnergy Conservation Special Account by the Minister of Economy, Trade and Industry,
respectively. In this case, the preparation of information listed in the preceding two
paragraphs concerning the Energy Conservation Special Account shall be prepared by thehead of a general administrative department on behalf of the Minister of Economy, Tradeand Industry.
(Timing of information disclosure)
Article 37. Information listed in Article 20 of the Act shall be disclosed promptly from thedate provided in each of the following items, in accordance with the categories listed ineach of said items.
(1) Information described in documents as listed in paragraph 1, Article 19 of the Act:The date on which said documents were submitted to the Diet
(2) Information listed in item (1), paragraph 1 of the preceding Article: The date on
which the Special Account was established(3) Information listed in item (2), paragraph 1 of the preceding Article: The date on
which the Budget was submitted to the Diet
(4) Information listed in item (3), paragraph 1 of the preceding Article: The date on
which the settlement of account was submitted to the Diet
2. If there is any change in the information listed in item (1) or item (2), paragraph 1 of thepreceding Article after the disclosure of said information under the provisions of thepreceding paragraph, the content thereof shall be amended promptly.
(Details of information disclosure)
Article 38. In addition to what is stipulated in Article 34 through the preceding Article,
necessary matters concerning the preparation of documents pursuant to paragraph 1,
Article 19 of the Act and the disclosure of information pursuant to Article 20 of the Act
shall be provided by the Minister of Finance.

143