Summary |
Automobile insurance in Japan is operated under two different systems (and also two different policies), compulsory automobile liability insurance (hereinafter referred to as “CALI”) and voluntary automobile insurance. CALI was established and has been operated under the Automobile Liability Security Law, which was promulgated and became effective in 1955. This insurance only covers bodily injury liability, and the law specifies the limits of insurer’s liability for death, each grade of permanent disability and bodily injury. On the other hand, voluntary automobile insurance includes third party liability coverage (bodily injury liability and property damage liability), self-incurred personal accident coverage, protection uninsured automobiles coverage, passengers’ personal accident coverage for damage to the insured’s own vehicle (hereinafter referred to as “damage to own vehicle”). With respect to liability for bodily injury, voluntary automobile insurance acts as excess cover to CALI.
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