In response to the rapid increase in automobile accidents,the Automobile Liability Insurance Law was promulgated on July29,1955,in order to establish an automobile liability insurance system and ensure thorough protection of victims in such accidents.The Law came into force between August1955and February1956.
  The Law is designed to protect victims who are killed or injured in automobile accidents,by establishing a system that guarantees compensation for damage.The automobile liability insurance system under the Law is one of the relief systems for victims.Automobile third-party liability insurance(hereinafter referred to as"third-party insurance")and automobile mutual liability insurance(hereinafter referred to as"mutual insurance")constitute the core of the automobile liability insurance system.
  In order to complement the third-party insurance and the mutual insurance systems,the government operates an automobile liability compensation system.Under this system,the government provides compensation for damage to victims of hit-and-run cases or accidents caused by uninsured automobiles,because such victims are not covered by third-party insurance or mutual insurance.The amount of compensation is the same as that of the benefits under third-party insurance.In fiscal2002,the system covered2,980victims of hit-and-runs and703victims of uninsured driving.The system paid about21.48million yen per person killed and about610,000yen per person injured on average(Source:Data by Road Transport Bureau,Ministry of Land,Infrastructure and Transport).