Originally published on metropolis.co.jp on March 2012

What can you do if you’re involved in a traffic accident in Japan?

As in other countries, the first principle is the wrongdoer pays for all damages. But the amount is sometimes too much for him or her to pay. In Japan, every car owner must hold automobile liability insurance—known as jibaiseki. So, though there are some exceptions, you can expect to obtain some damages. However, the standard, obligatory insurance doesn’t include material damages. You can’t obtain such damages if the opposite side does not have full insurance, and if they can’t afford to compensate you.

Be aware that compulsory insurance isn’t always sufficient to compensate all damages. This is because payoffs are based on class of damage. So you can’t receive more than ¥30,000,000—even if you lose your sight. The limit is ¥1,200,000 for medical treatment, and ¥4,200/day as consolation money for an injury.

If compensation from standard insurance is insufficient, you’ll have to sue the wrongdoer and demand full compensation. Requesting compensation without a lawsuit means negotiating with the insurance, who will likely never agree to the desired figure.

If the wrongdoer has insufficient funds to compensate, or the negligence on your side is too big, you’ll have to resort to health insurance. If the accident occurred during work or commuting, you could use labor insurance, which includes free medical care and lost-earning compensation. But this is 60% of what you’d expect to receive normally. With so many factors, experienced legal advice can help negotiate the obstacles on the road ahead.

Free legal consultations in English, Chinese, and Korean. AITS Shinjuku Law Office. 3F Believe Shinjuku-Bldg. 1-26-9 Shinjuku, Shinjuku-ku. Tel: 03-5362-0907. Email iyota@aits-lpc.com. Nearest stn: Shinjuku. www.aits-lpc.com