A government advisory panel in Japan has approved a proposal to lower compulsory automobile liability insurance premiums by an average of 6.9%. The change will take effect in April and is the first of its kind in nine years.
The proposal was greenlighted by the Compulsory Automobile Liability Insurance Council, which advises the Financial Services Agency commissioner, due to the program’s improved finances. There was a decline in the number of traffic accidents, partially attributed to widespread use of vehicles with automatic braking systems.
The premium level is expected to balance out against the amount of paid-out claims.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
A two-year contract will cost ¥25,070 (US$217) for mini vehicles, or 4.9% lower than the previous level. For larger passenger cars, it will cost ¥25,830 (US$224), which is 7.2% lower than before.
Large motorcycles with engine displacement of over 250cc will see their premium go down by 15.5% to ¥11,520 (US$100), but smaller motorbikes’ premiums will go up by 0.8% to ¥9,950 (US$86.40).
The compulsory automobile liability insurance scheme has a payout of up to ¥30 million (US$260,400) for a fatal accident, and up to ¥40 million (US$347,300) if a victim ends up severely disabled.
Related stories:
Japan Post Insurance switches off the lights on overwork
Car insurance premiums in Japan could go down in 2018
Japanese insurers to cover train delays caused by dementia patients
