[MLIT] Enactment of Legislation to Amend the Automobile Liability Security Act

On June 9, 2022, the House of Representatives passed the "Act for Partial Revision of the Automobile Liability Security Act and the Special Account Act," which was promulgated on June 15, 2022. (Law No. 65)

The purpose of this legislation is to amend the Automobile Liability Insurance Act and related acts, and to make permanent the services related to the assistance of persons who suffered damages and the prevention of accidents.

Compulsory automobile liability insurance is a mechanism to ensure minimum liability in the event of an automobile accident. In addition, investment profits from the "Automobile Safety Special Account," in which insurance premiums are accumulated, support people who have suffered severe permanent impairments due to accidents. Specifically, this scheme provides subsidies to cover the personnel expenses and such of facilities or group homes where the victims of accidents reside. However, this scheme, funded by investment income from reserve funds, carries the risk that the depleting reserve fund may hinder its sustainability. Given this, the scheme is legislated.

A summary of the legislation is as follows.

(1) A permanent program towards victim assistance and accident prevention (Partial Amendment to the Automobile Liability Insurance Act)

  • The services in relation to victim assistance and accident prevention were implemented as a "temporary measure" because the limited reserve financed them. However, these services shall become permanent by positioning these services as the "Victim Protection Promotion" service.
  • The "Compensation" service and the "Victim Protection Promotion" service, which were implemented to compensate for damages caused by uninsured motorists and hit-and-run accidents, shall be integrated into the "Automobile Accident Compensation" program since they have the same purpose in terms of victim support.
  • The "Automobile Liability Security Levy," which was collected to implement the Compensation service, shall be expanded as the "Automobile Accident Compensation Levy" to cover the Automobile Accident Compensation program, which includes the Victim Protection Promotion service.

(2) Revision of the Special Account for Automobile Safety [Partial Amendment of the Special Account Act].

For more information, please visit the website below.
https://www.shugiin.go.jp/internet/itdb_gian.nsf/html/gian/honbun/houan/g20809036.htm

The Act can be found at the following link.
https://www.mlit.go.jp/report/press/jidosha02_hh_000486.html

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