Act on Securing Compensation for Automobile Accidents

• The liability rule in Article 3, the compulsory insurance and the government's compensation each apply where operating a car harms a person's life or body (生命又は身体), that is, death or injury; none of them covers damage to property. A "car" (自動車) here is a car or a motorized bicycle (原動機付自転車) as the Road Transport Vehicle Act (道路運送車両法) defines them, but not a small special vehicle built for farm work.(Art. 1(1), Art. 2(1), Art. 3(1), Art. 11(1), Art. 72(1)) (the provisions it rests on)
• No car may be put into operation unless a contract of compulsory automobile liability insurance (自動車損害賠償責任保険) or automobile liability mutual aid (自動車損害賠償責任共済) has been concluded for it, one contract for each car. Once the holder (保有者) is liable to a victim under Article 3, the cover pays the holder's loss from that liability, and the driver's where the driver is liable to the victim too. Insurers may not refuse such a contract without a legitimate reason a Cabinet Order sets, nor may cooperatives, except also where taking it would break particular provisions of the separate Act each kind of cooperative is formed under, which Article 24 names.(Art. 5(1), Art. 12(1), Art. 11(1), Art. 11(2), Art. 23-3(1), Art. 24(1), Art. 24(2)) (the provisions it rests on)
• The insurer issues the policyholder a certificate of automobile liability insurance (自動車損害賠償責任保険証明書) once the premium is paid, and a car may not be put into operation without it on board; under mutual aid the cooperative issues a mutual aid certificate in the same way. Light vehicles exempt from inspection, motorized bicycles and cars registered in another country party to the road traffic convention must also display an insurance sticker (保険標章), or under mutual aid a mutual aid sticker (共済標章).(Art. 7(1), Art. 8(1), Art. 9-2(1), Art. 9-3(1), Art. 9-4(1), Art. 9-5(1), Art. 9-5(2)) (the provisions it rests on)
• Once the holder is liable under Article 3, the victim may claim the compensation directly from the insurer, or the cooperative for mutual aid, up to the insured amount, which a Cabinet Order sets. Where the holder of an insured car has killed or injured someone, the victim may also claim a provisional payment (仮渡金) of an amount a Cabinet Order sets, which the insurer must pay without delay and can reclaim in so far as it exceeds the compensation owed. Neither claim can be seized, and each lapses three years after the victim or their legal representative learns of the loss and of who the holder is.(Art. 16(1), Art. 13(1), Art. 17(1), Art. 17(2), Art. 17(3), Art. 18(1), Art. 19(1), Art. 23-3(1)) (the provisions it rests on)
• Under its automobile accident compensation guarantee program (自動車損害賠償保障事業), the government compensates a victim's loss on their claim, up to an amount a Cabinet Order sets, where the car's holder is not known so no claim under Article 3 can be made, or where the person liable under Article 3 is not insured or covered by mutual aid — unless the liability arises from a car Article 10 exempts. It pays nothing in so far as the victim is to receive an equivalent benefit under the Health Insurance Act (健康保険法), the Industrial Accident Compensation Insurance Act (労働者災害補償保険法) or another law a Cabinet Order names, and, where the person liable is uninsured, in so far as that person has paid. That claim on the government cannot be seized, and lapses three years after it could first be exercised.(Art. 71(1), Art. 72(1)(i), Art. 72(1)(ii), Art. 73(1), Art. 73(2), Art. 74(1), Art. 75(1)) (the provisions it rests on)

• 1 April 2026

  The text on this site

  Act Partially Amending the Local Tax Act, etc.

  地方税法等の一部を改正する法律

  Act No. 2 of 2026The text after this amendment, on e-Gov

• 1 June 2025

  Act on the Arrangement of Related Acts upon the Enforcement of the Act Partially Amending the Penal Code, etc.

  刑法等の一部を改正する法律の施行に伴う関係法律の整理等に関する法律

  Act No. 68 of 2022The text after this amendment, on e-Gov

• 1 April 2024

  Act Partially Amending the Basic Act on the Formation of a Digital Society, etc. to Promote Regulatory Reform for the Formation of a Digital Society

  デジタル社会の形成を図るための規制改革を推進するためのデジタル社会形成基本法等の一部を改正する法律

  Act No. 63 of 2023The text after this amendment, on e-Gov

• 16 June 2023

  Act Partially Amending the Basic Act on the Formation of a Digital Society, etc. to Promote Regulatory Reform for the Formation of a Digital Society

  デジタル社会の形成を図るための規制改革を推進するためのデジタル社会形成基本法等の一部を改正する法律

  Act No. 63 of 2023The text after this amendment, on e-Gov

• 1 April 2023

  Act Partially Amending the Act on Securing Compensation for Automobile Accidents and the Act on Special Accounts

  自動車損害賠償保障法及び特別会計に関する法律の一部を改正する法律

  Act No. 65 of 2022The text after this amendment, on e-Gov

• 1 January 2023

  Act Partially Amending the Road Transport Vehicle Act

  道路運送車両法の一部を改正する法律

  Act No. 14 of 2019The text after this amendment, on e-Gov

• 1 September 2022

  Act Partially Amending the Act on Securing Compensation for Automobile Accidents and the Act on Special Accounts

  自動車損害賠償保障法及び特別会計に関する法律の一部を改正する法律

  Act No. 65 of 2022The text after this amendment, on e-Gov

• 17 June 2022

  Act on the Arrangement of Related Acts upon the Enforcement of the Act Partially Amending the Penal Code, etc.

  刑法等の一部を改正する法律の施行に伴う関係法律の整理等に関する法律

  Act No. 68 of 2022The text after this amendment, on e-Gov

• 15 June 2022

  Act Partially Amending the Act on Securing Compensation for Automobile Accidents and the Act on Special Accounts

  自動車損害賠償保障法及び特別会計に関する法律の一部を改正する法律

  Act No. 65 of 2022The text after this amendment, on e-Gov

• 1 April 2020

  Act Partially Amending the Local Tax Act, etc.

  地方税法等の一部を改正する法律

  Act No. 5 of 2020The text after this amendment, on e-Gov

All 15 amendments already in force

• The duty to have compulsory insurance or mutual aid, and the rules on certificates and stickers, do not apply to cars the State or another body a Cabinet Order names operates for duties or uses a Cabinet Order sets. Nor do they apply to cars operated only off roads (道路), where a road means a road under the Road Act (道路法), a motorway under the Road Transportation Act (道路運送法) or any other place open to general traffic. Light vehicles exempt from inspection and motorized bicycles exempted in the first way must instead display an exemption sticker (保険・共済除外標章) issued by the Minister of Land, Infrastructure, Transport and Tourism, except those a Cabinet Order names.(Art. 10(1), Art. 10-2(1), Art. 10-2(3)) (the provisions it rests on)
• An insurer escapes paying only for loss caused by the bad faith (悪意) of the policyholder or the insured, or where a car has more than one contract. Even for loss caused in bad faith the victim may still claim directly, and an insurer that pays may seek reimbursement from the government, which takes over the victim's rights against the policyholder or insured.(Art. 14(1), Art. 16(1), Art. 16(4), Art. 76(2), Art. 82-3(1)) (the provisions it rests on)
• Where one car has two or more contracts, only the one concluded first answers for accidents in the period it covers; the insurers or cooperatives of the later ones are released, and where several were concluded at the same earliest time, each answers for an equal share.(Art. 82-3(1), Art. 82-3(2)) (the provisions it rests on)
• Where no liability under Article 3 arose but the insurer has already paid a provisional payment, it may seek reimbursement from the government, which can then reclaim the payment from the victim.(Art. 17(4), Art. 76(3)) (the provisions it rests on)
• Where the insurer cancelled the contract for a failure to disclose and an accident happened before the cancellation took effect, seven days after the policyholder was notified, the insurer still covers the loss but may claim back what it paid from the policyholder. It may do the same where the risk increased during the period, the policyholder or insured failed to tell it, and an accident then happened.(Art. 21(1), Art. 21(2), Art. 22(2), Art. 22(3)) (the provisions it rests on)
• A compulsory insurance or mutual aid contract cannot be cancelled by agreement or made subject to a condition ending it. Either party may cancel it only in the cases Article 20-2 lists, among them the car becoming one Article 10 exempts, or another contract covering the car to the same end date or later.(Art. 20-2(1), Art. 20-2(2), Art. 23-3(1)) (the provisions it rests on)

• Putting a car into operation without compulsory insurance or mutual aid, against Article 5, is punished by imprisonment (拘禁刑) for up to one year or a fine of up to 500,000 yen. Where it is done in the course of a company's or employer's business, the company or employer is fined as well.(Art. 86-3(1)(i), Art. 90(1)) (the provisions it rests on)
• Operating a car without the insurance certificate on board or without displaying the sticker where one is required, or displaying a sticker on a vehicle other than the one it was issued for, is punished by a fine of up to 300,000 yen, and displaying an expired sticker by a fine of up to 200,000 yen. Where the Minister of Land, Infrastructure, Transport and Tourism considers it necessary for the Act's purpose, an official may ask a driver, on the road or wherever the car is, to show the insurance or mutual aid certificate, and refusing or obstructing this is punished by a fine of up to 200,000 yen.(Art. 88(1)(i), Art. 9-3(2), Art. 9-3(3), Art. 89(1)(i), Art. 85(1), Art. 89(1)(iii)) (the provisions it rests on)
• Anyone seeking a vehicle inspection or another procedure Article 9 lists, under the Road Transport Vehicle Act (道路運送車両法) and other Acts, must also show the insurance certificate; in some cases a copy will do, or having the insurer send its details electronically, which counts as showing it. The authority does not act unless it is shown or a copy given and, for most cars, the insurance period covers the whole period until the inspection certificate or the temporary permit runs out.(Art. 9(1), Art. 9(2), Art. 9(3), Art. 9(5)) (the provisions it rests on)
• Forging or altering an insurance sticker, mutual aid sticker or exemption sticker in order to use it, or using a forged one, is punished by imprisonment (拘禁刑) for up to three years, a fine of up to 1 million yen, or both. Making or using a look-alike in order to use it, or handing an insurance or mutual aid sticker to another person without a legitimate reason, is punished by imprisonment for up to one year or a fine of up to 500,000 yen. Obtaining a certificate or sticker by deception is punished by imprisonment for up to six months or a fine of up to 200,000 yen.(Art. 84-2(1), Art. 86-2(1), Art. 84-2(2), Art. 84-2(3), Art. 86-3(2), Art. 87(1)) (the provisions it rests on)
• After compensating a victim under its guarantee program, the government takes over the victim's rights against the person liable, up to what it paid. Where it paid because the person liable had no compulsory cover, it may also collect from them a penalty charge (過怠金) of an amount a Cabinet Order sets. If that is not paid, the Minister of Land, Infrastructure, Transport and Tourism sends a demand with a deadline at least ten days away, and after the deadline collects it in the way national taxes in arrears are collected.(Art. 76(1), Art. 79(1), Art. 80(1), Art. 80(2), Art. 80(4)) (the provisions it rests on)
• Insurers must pay according to payment criteria (支払基準) set by the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister, separately for death, residual disability and injury, and must give the claimant a written statement of the reason when they decide not to pay. A victim or insured person may report a payment that breaks these rules to that Minister, who instructs the insurer, may publish its failure to comply and then order it, and acting against the order is punished by a fine of up to 1 million yen.(Art. 16-3(1), Art. 16-4(3), Art. 16-7(1), Art. 16-8(1), Art. 16-8(3), Art. 16-8(4), Art. 87-2(1)) (the provisions it rests on)
• On a claim, the insurer must without delay give the claimant a written outline of the payment criteria, and when it pays, a written statement of the amount, the residual disability grade and the reason for that grade. The claimant may then ask in writing for a fuller explanation, which the insurer must give in writing within 30 days, unless a legitimate reason such as unfair harm to a third party's rights lets it decline, which it must state in writing; where it cannot meet the 30 days, it must say why and by when.(Art. 16-4(1), Art. 16-4(2), Art. 16-5(1), Art. 16-5(2), Art. 16-5(3), Art. 16-5(4)) (the provisions it rests on)
• A dispute over an insurance or mutual aid payment can be taken by the insurer, cooperative, insured person or victim to a dispute resolution organization (指定紛争処理機関) designated by the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister, which mediates it. Where it ends the mediation as hopeless and the party who applied sues on the same claim within one month of being told, the suit counts, for the limitation period, as filed when mediation was applied for.(Art. 23-5(1), Art. 23-6(1)(i), Art. 23-14(1)) (the provisions it rests on)