In response to the rapid increase of automobile accidents, the Automobile Liability Security Law was enacted in July1955to ensure the thorough protection of victims. The Law, which envisaged the establishment of an automobile liability security scheme, went into force in stages between August1955and February1956.
  The Law is intended inter alia to protect victims by establishing a scheme that guarantees compensation for damage when persons are killed or injured by automobiles in road traffic. The automobile liability security scheme under the Law may be seen as one of the relief schemes for victims. Automobile third-party liability insurance("third party insurance")and automobile mutual liability insurance("mutual insurance")form the core of the automobile liability security scheme.
  The main features of the scheme can be summarized as follows:
(i) By shifting the burden of proof to the perpetrators, drivers and owners of automobiles assume liability for bodily damage caused in driving automobiles, in a manner similar to liability without fault.
(ii) Car owners are required to conclude a third-party insurance contract with a non-life insurance company or to conclude a mutual insurance contract with an agricultural cooperative association(or the national federation thereof), with the National Federation Group of Labor Mutual Cooperative Associations or with the National Federation Group of Automobile Mutual Cooperative Associations(which started mutual insurance business on April1,1998).
(iii) In the case of an accident resulting in death or bodily injury, the third-party or mutual insurer pays a benefit of up to¥30million for death, ¥1.2million for bodily injury or bodily injury leading to death and¥30million for subsequent disability.
  Table V-9 shows the payments of third-party insurance and mutual insurance benefits in fiscal1998(April-March).

Table V-9 Payments of Third-Party and Mutual Insurance Benefits(FY1998)

  In order to complement third-party and mutual insurance, the government operates an automobile liability compensation scheme. Under this scheme, the government compensates for damage inflicted in hit-and-run cases or accidents caused by uninsured automobiles, as the victims are not covered by third-party insurance or mutual insurance. The amount of compensation is similar to the benefits provided by third-party insurance. In fiscal1998(April-May), the scheme covered3,293hit-and-run cases and441uninsured cases, paying some¥1,996million for105persons killed and some¥2,065million for3,629persons injured. Thus, the scheme paid some¥19.01million per person killed and¥0.57million per person injured(source:Road Transport Bureau, Ministry of Transport).