FSA to slash motor liability premiums

The Financial Services Agency has decided to reduce premiums for compulsory motor liability insurance from April.

The move reflects the improved finances of the insurance program as wider use of vehicle safety devices such as automatic braking systems contribute to a decline in the number of traffic accidents.

The Compulsory Automobile Liability Insurance Council, which advises the Financial Services Agency, will discuss the premium reduction of around 16 percent, according to a report by the Japan Times. The government aims to make a final decision by the end of the month, the sources said.

The insurance helps cover damages from traffic accidents resulting in death or injury. Premiums were last reduced in April 2017.

Currently, a two-year contract has a premium of JPY25830, excluding Okinawa Prefecture and remote islands. A 16 percent cut will reduce the premium by some JPY4000.