The automobile insurance includes the“compulsory automobile liability insurance (compulsory insurance)”required for all automobiles according to the Automobile Liability Security Law and the“voluntary insurance”that covers damages in consequence of possessing and driving vehicles.
The compulsory automobile liability insurance covers damages of affected people such as a doctor's fee, compensation and expected profit lost because of a death, injury or after-effect of an injury. The voluntary automobile insurance covers bodily injury liability, property damage liability, self-incurred personal accidents and protection against uninsured automobiles, passengers’ personal accident, and vehicle's own damage.
Automobile insurance regulations were liberalized in July, 1998.
Following the revision of the Law Concerning Non-Life Insurance Rating Organizations, the Rating Organization shall estimate only the rate for reference that its member insurance corporation is not obligated to use. Since the liberalization, each non-life insurance company sells a variety of insurance.