①The Minister of Land, Infrastructure, Transport and Tourism must issue an insurance/mutual insurance exemption sticker to a person in possession of a light motor vehicle not subject to inspection and to which the preceding Article applies, or of a motorized bicycle (other than one as prescribed by Cabinet Order or one that is put into operational use only in places other than roads), pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

②Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes the valid period for an insurance/mutual insurance exemption sticker.

③It is prohibited to put a light motor vehicle not subject to inspection or motorized bicycle as prescribed in paragraph (1) into operational use unless it displays an insurance/mutual insurance exemption sticker pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

④Article 9-2, paragraphs (4) and (5) and Article 9-3, paragraphs (2) and (3) apply mutatis mutandis to insurance/mutual insurance exemption stickers.

①A contract for liability insurance becomes valid when the insurer agrees that, if a person in possession becomes liable to compensate for damage as under Article 3, it will indemnify the damage that the person in possession incurs due to that liability, as well as the damage that the driver incurs due to liability in the event that the driver must also be held liable to compensate the injured party for damage; and the policyholder agrees to pay insurance premiums to the insurer.

②A contract for mutual liability insurance becomes valid when the cooperative agrees that, if a person in possession becomes liable to compensate for damage as under Article 3, it will indemnify the damage that the person in possession incurs due to that liability, as well as the damage that the driver incurs due to liability in the event that the driver must also be held liable to compensate the injured party for damage; and the mutual insurance policyholder agrees to pay mutual insurance premiums to the cooperative.

A person must conclude a separate contract for liability insurance for each automobile.

①Cabinet Order provides for the amount of insurance coverage under liability insurance.

②Upon the enactment or amendment of Cabinet Order based on the preceding paragraph, Cabinet Order may prescribe the necessary measures for changing the amount of insurance coverage under the liability insurance associated with an automobile insured under a contract for liability insurance that has already been concluded at the time that the Cabinet Order enters into force to the amount of insurance coverage provided for after the enactment or amendment, and may prescribe any other necessary transitional measures to coordinate with the enactment or amendment thereof.

Except as prescribed in Article 82-3, an insurer is only released from liability to indemnify damage if it arises due to the bad faith of the policyholder or the insured.

The insured may file a claim with the insurer for insurance proceeds, but only to the extent of the damages that the insured has paid to the injured party.

①If a person in possession becomes liable to compensate for damage as under Article 3, the injured party may file a claim with insurer for the insurer to pay the injured party damages of up to the amount of insurance coverage, pursuant to Cabinet Order.

②If the insured compensates the injured party for damage and the insurer indemnifies the insured for that damage, the insurer is released, to the extent of the amount for which it has indemnified the insured, from the obligation to pay the injured party as referred to in the preceding paragraph.

③Unless damage has arisen due to the bad faith of the policyholder or the insured, if the insurer pays damages to the injured party pursuant to paragraph (1), the insurer is deemed to have indemnified the insured for damage based on the contract for liability insurance.

④If damage has arisen due to the bad faith of the policyholder or the insured and the insurer has paid damages to the injured party pursuant to paragraph (1), the insurer may claim the government to compensate it for the amount it has paid.

The insurance proceeds that the insurer is to pay the insured and the damages that the insurer is to pay the injured party pursuant to paragraph (1) of the preceding Article (hereinafter, except in Article 28-4, paragraph (1), referred to as "insurance proceeds and damages") to compensate for damage due to the injured party's inability to work while in recuperation or for any other damage that Cabinet Order prescribes are limited to the amount prescribed by Cabinet Order.

①An insurer must abide by the criteria for payment that the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister set (hereinafter referred to as "criteria for payment") when paying insurance proceeds and damages, and must make separate payments for death, residual disability, and injury.

②When setting the criteria for payment pursuant to in the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister must take into consideration the need to ensure fair and prompt payment. The same applies if they change the criteria for payment.

①When a claim is filed for insurance proceeds and damages, the insurer, without delay, must deliver to the insured or injured party that has filed the claim a document giving an outline of the criteria for payment and any other information that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order specify, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

②Having paid insurance proceeds and damages, an insurer, without delay, must deliver to the insured or injured party that has filed a claim as prescribed in the preceding paragraph a document detailing the amount of the insurance proceeds and damages paid, the applicable grade of residual disability, the reason for the decision that that grade is applicable, and any other material information concerning the payment of the insurance proceeds and damages that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order specifies, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

③On deciding not to pay insurance proceeds and damages because there is evidence of circumstances as prescribed in the proviso to Article 3 or based on other grounds, an insurer, without delay, must deliver to the insured or injured party that has filed a claim as prescribed in paragraph (1) a document giving grounds for not paying the insurance proceeds and damages, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

④With the consent of the insured or the injured party and pursuant to Cabinet Order, in lieu of delivering a document as under one of the preceding three paragraphs, an insurer may use one of the means of employing an electronic data processing system or of otherwise making use of information and communications technology which Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribes, to provide the relevant person with the information that it is required to give in that document. Having done so, the insurer is deemed to have delivered the relevant document.

①Except as prescribed in the first sentence of the next paragraph, if, after the insurer delivers a document pursuant to paragraph (2) or (3) of the preceding Article, the insured or the injured party asks the insurer, in writing and pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, for an explanation of material information as prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order with regard to the payment of insurance proceeds and damages (other than information as prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order which is referred to in paragraph (2) of that Article), or for an explanation of the details prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order with regard to its grounds for not paying the insurance proceeds and damages as prescribed in paragraph (3) of that Article, the insurer must provide a written explanation of this to the insured or injured party asking for the explanation, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order; provided, however, that the insurer may provide an explanation other than in writing if the person asking for the explanation consents.

②An insurer may decide not to explain all or some of the things that it has been asked to explain pursuant to the preceding paragraph, if explaining something it has been asked to explain could do unreasonable harm to the rights and interests of a third party or if there are any other legitimate grounds for it to decide not to give an explanation. In such a case, the insurer must deliver a document indicating that it will not explain these things and giving the grounds for not explaining them to the person requesting the explanation.

③An insurer must give an explanation as under paragraph (1) or deliver a document as under the preceding paragraph (in the next paragraph, this is referred to as an "explanation, etc.") within 30 days, counting from the day the explanation is asked for pursuant to paragraph (1).

④If an insurer is unable to provide an explanation ,etc. within the period prescribed in the preceding paragraph due to the difficulty of clerical processing or any other legitimate grounds, it must notify the person asking for the explanation pursuant to paragraph (1), in writing and within the period prescribed in the preceding paragraph, of the reasons it cannot provide an explanation , etc. within the period prescribed in the preceding paragraph and of the time limit by which it will provide an explanation, etc.

⑤With the consent of the insured or the injured party and pursuant to Cabinet Order, in lieu of giving a written explanation as under paragraph (1), delivering a document as under paragraph (2) or notifying a person in writing as under the preceding paragraph (hereinafter referred to as providing a "written explanation , etc."), an insurer may use one of the means of employing an electronic data processing system or of otherwise making use of information and communications technology which Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribe, to provide the relevant person with the information that it is required to give in the document. Having done so, the insurer is deemed to have provided a written explanation ,etc.

Having paid insurance proceeds and damages or delivered a document under Article 16-4, paragraph (3) in connection with a death or other damage that Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes as giving rise to an especially high necessity for the insurer to properly pay insurance proceeds and damages, the insurer must report this to the Minister of Land, Infrastructure, Transport and Tourism without delay, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

If one of the following facts is true of an insurer's payment or payment procedures for insurance proceeds and damages, the insured or the injured party may notify the Minister of Land, Infrastructure, Transport and Tourism of that fact:

①Having received a report as under Article 16-6, having been notified as under the preceding Article, or in any other case, on finding that the insurer's payment or payment procedures for insurance proceeds and damages fall under one of the items of the preceding Article, the Minister of Land, Infrastructure, Transport and Tourism must instruct the insurer to make a payment in accordance with the criteria for payment; to deliver a document as under Article 16-4, paragraphs (1) through (3); or to provide an explanation as under Article 16-5, paragraph (1), deliver a document as under paragraph (2) of that Article, or give notice as under paragraph (4) of that Article.

②Having given the instructions prescribed in the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism must notify the Prime Minister of this without delay.

③If an insurer that has been instructed to do as prescribed in paragraph (1) fails to do as instructed and is without a legitimate reason for failing to do so, the Minister of Land, Infrastructure, Transport and Tourism may disclose this to the public.

④If, after its failure to do as instructed has been disclosed to the public pursuant to the preceding paragraph, an insurer that has been instructed to do as prescribed in paragraph (1) fails to take measures to abide by the instructions and is without a legitimate reason for failing to do so, the Minister of Land, Infrastructure, Transport and Tourism may order the insurer to take measures to abide by the instructions.

⑤The Minister of Land, Infrastructure, Transport and Tourism must first gain the consent of the Prime Minister before making a public disclosure as prescribed in paragraph (3) or giving an order as prescribed in the preceding paragraph.

①An insurer is not liable for delays following receipt of a claim for the payment of damages under Article 16, paragraph (1), until the necessary period of time has passed to look into the accident caused by the operation of the automobile subject to the claim and verify the damages.

②When an insurer is conducting the necessary investigations to look into an accident as prescribed in the preceding paragraph, if an injured party, without a legitimate reason, interferes or fails to comply with the investigation, the insurer is not liable for delays that arise during the period that the payment of damages is delayed due to the interference or failure to comply.