4 Automobile liability insurance systems

  The Automobile Liability Security Act (Act No. 97 of 1955) is designed to protect victims who are killed or injured in automobile accidents, by establishing a system that guarantees compensation for damage. Automobile third-party liability insurance and automobile mutual liability insurance (hereinafter referred to as “mutual insurance, etc.”) constitute the core of the automobile liability insurance system.
  In order to complement mutual insurance, etc., the government operates an automobile liability compensation system. Under this system, the government provides compensation for damage to victims of hit-and-run cases where perpetrators cannot be identified or accidents caused by automobiles which are not covered by any valid mutual insurance, etc., because such victims cannot receive any compensation from mutual insurance, etc. The amount of compensation is the same as that of the benefits under mutual insurance, etc.
  In FY 2006, the system covered 3,065 victims of hit-and-runs and 644 victims of accidents caused by automobiles uninsured. The system paid about 21.48 million yen per person killed and about 740,000 yen per person injured on average (Source: The Road Transport Bureau, Ministry of Land, Infrastructure and Transport).