How do I Buy Japanese Compulsory Insurance?
Japan's automotive laws includes a mandatory purchase of "Jibaiseki Hokan," called Compulsory Auto Liability Insurance (or CALI) in English. While other, voluntary forms of insurance cover accidents more extensively, CALI ensures a minimal level of financial protection for the victim. According to the Non-Life Insurance Rating Organization of Japan, CALI "only covers bodily injury liability" and its purchase is required at the time you buy a new or used vehicle.
Other People Are Reading
Instructions
-
-
1
Purchase a car or motorcycle. Whether it's new or used, you're expected to purchase CALI when you have it registered. The location where you purchase your car will tell you the nearest registration and inspection location from which you'll have a "shakken" (inspection) performed, and purchase the necessary registration and insurance.
-
2
Take your car to the registration agency to have a "shakken" performed. If the car is used and deemed hazardous by the shakken, you won't be able to purchase CALI until after you have the problem fixed and re-inspected. Whether or not the car passes inspection, you will pay a "Mandatory Inspection Fee" upon completion. If you've purchased a new car, it's possible both the CALI and Mandatory Inspection Fees were included in the price, but this isn't standard practice so make sure you've cleared up any possible misunderstandings with the car dealership before leaving for the shakken.
-
-
3
Purchase CALI for your car or motorcycle once it successfully passes inspection. The cost of this insurance varies based on a number of factors, the main point being the age of your vehicle. A new car may have a relatively low fee due to the low expected cost of maintenance for the first three years, but the older your car becomes the more expensive the fees will be to offset the higher expected maintenance fees. Purchasing CALI and the Mandatory Inspection Fee for a new car covers it for three years before it must be renewed, then every two years after that; the CALI and Mandatory Inspection Fee for a used vehicle must be renewed every two years.
-
1
Tips & Warnings
Although CALI does cover the basics of bodily injury for the victim in case of an accident, more extensive coverage is available through voluntary insurance, or "Ninni Hoken." Insurance agencies will cover both injuries and damage protection, with various options similar to auto insurance of Western countries. Some agencies offer additional "nonaccidental" damage coverage, such as windshield breakage protection from rocks, but the cost is usually much steeper than the regular accident protection.
References
- Photo Credit yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
