Japan to Raise Auto Liability Insurance Premiums

Tokyo, May 1 (Jiji Press)--A Japanese government advisory panel on Thursday approved a plan to raise compulsory automobile liability insurance premiums by 6.2 pct on average, effective on Nov. 1, the first hike in 13 years.

The decision by the Compulsory Automobile Liability Insurance Council, which advises the Financial Services Agency, came in light of rising costs for health care, labor and system development.

The premium for two-year coverage of private-use passenger cars will rise by 910 yen to 18,560 yen, excluding the southernmost prefecture of Okinawa and remote islands. For motorcycles with an engine displacement of 250 cc or more, the premium will increase by 880 yen to 9,640 yen.

The insurance covers compensation for victims of traffic accidents resulting in injury or death. Its premiums had declined in recent years due to advances in vehicle safety technologies.

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