What is CALI (Mutual Insurance)?
What is CALI (Mutual Insurance)?
The official name for CALI (mutual insurance) is "Automobile Liability Insurance and Mutual Automobile Liability Insurance."
The CALI (mutual insurance) system provides various forms of relief to victims of traffic accidents. These include compensation for damages to the victim from the person who caused the accident (the at-fault party), support for benefits for home nursing care for those who need nursing care in daily living activities such as being bedridden or using a wheelchair, and operation of hospitals specializing in treatment for people with severe residual disabilities.
Features of CALI (Mutual Insurance)
CALI (Mutual Insurance): Six Features
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All motor vehicles (including motorized bicycles and electric scooters / kickboards, etc.) must have compulsory automobile liability insurance (CALI) and mutual insurance in accordance with the Act on Securing Compensation for Automobile Accidents.
If you do not have CALI (mutual insurance), you cannot have your vehicle inspected. - Property damage accidents are not covered. CALI (mutual insurance) covers only bodily injury damages due to personal injury accidents.
- The maximum amount payable is an amount set for each individual victim. Even if there are multiple victims in one accident, the maximum amount payable is set for each victim separately.
- The victim can file a claim for CALI (mutual insurance) directly with the at-fault party's non-life insurance company (mutual insurance association).
- A provisional payout system is available to cover temporary expenses (medical treatment, etc.) before the amount of the CALI payment (mutual insurance payment) is finalized and paid out.
- The CALI payment (mutual insurance payment) will be reduced only if the victim was grossly negligent in causing the traffic accident.
Compensation through CALI (Mutual Insurance)
The maximum amount of payment for compensation for damages covered by CALI (mutual insurance) is as follows per victim of an accident.
- Damages for death:
- Up to 30 million yen
- Damages for residual disability:
- Maximum 40 million yen to 750,000 yen (depending on the grade of residual disability)*.
- Damages for injury:
- Up to 1.2 million yen
*If the patient is left with significant disabilities in the nervous system, mental or thoracic and abdominal organs and requires nursing care:
Constant nursing care: 40 million yen (Grade 1); occasional nursing care: 30 million yen (Grade 2)
*Residual disability other than the above
30 million yen (Class 1) to 750,000 yen (Class 14)
Even if there are multiple victims in one accident,
the above payment limits are set for each victim. Property damage accidents are not covered.
Do I Need CALI (Mutual Insurance) Coverage?
CALI (mutual insurance) is compulsory insurance (mutual insurance) that must be purchased. All motor vehicles (including motorized bicycles and electric scooters / kickboards, etc.) are required to have CALI (mutual insurance). If you drive a motor vehicle without CALI (mutual insurance), you will face the following penalties.
- Imprisonment of up to 1 year or a fine of up to 500,000 yen
- Six penalty points (license suspension)
What About Automobile Insurance and Mutual Insurance (Voluntary Insurance and Mutual Insurance)?
CALI (mutual insurance) is a program established by law (the Act on Securing Compensation for Automobile Accidents) for the purpose of ensuring basic compensation for bodily injury.
There are limits to CALI (mutual insurance) coverage for compensation for bodily injury. So, in the event of a fatal accident or an accident that results in disability, you may be obliged to pay compensation in excess of the CALI (mutual insurance) limit. In addition, compensation for property damage accidents (property damage, etc.) and the at-fault party's own medical expenses and damage to the vehicle and other property are not covered by CALI (mutual insurance).
Therefore, if you believe that CALI (mutual insurance) coverage will not be sufficient, you should purchase both CALI/mutual insurance and automobile insurance/mutual insurance coverage.
CALI (Mutual Insurance) (Compulsory Insurance (Mutual Insurance))
This is a compulsory insurance and mutual insurance that all automobiles must be covered by. Insurance premiums (mutual insurance premiums) are set uniformly for each vehicle type (private passenger car, light automobile, motorized bicycle, etc.) regardless of the attributes of the policyholder, accident history, etc., and are minimum premiums (mutual insurance premiums) that do not include profits of the non-life insurance company (mutual insurance association) (no-loss, no-profit principle).
Payment limits are as follows per accident victim.
- Damages for death:
- Up to 30 million yen
- Damages for residual disability:
- Maximum: 40 million yen to 750,000 yen (depending on the grade of residual disability)
- Damages for injury:
- Up to 1.2 million yen
Automobile insurance and Mutual Insurance (Voluntary Insurance and Mutual Insurance)
Automobile insurance/mutual insurance is insurance/mutual insurance that pays the portion of compensation for bodily injury that exceeds the payment limit of CALI/mutual insurance, as well as compensation for property damage that is not covered by CALI/mutual insurance. Premiums (mutual insurance premiums) vary depending on the attributes of the policyholder, accident history, etc. Premiums (mutual insurance premiums) include the profits of non-life insurance companies (mutual insurance associations). Premiums (mutual insurance premiums), payment limits, payment coverage, etc. differ for each product offered by non-life insurance companies (mutual insurance associations).
Please use this information to ease your
concerns and for support.
If You Are Involved in a Traffic Accident
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has prepared a pamphlet titled "If You Are Involved in a Traffic Accident." This pamphlet informs and guides people who have been involved in a traffic accident about various systems and procedures. The challenges you face due to a sudden traffic accident will change over time. Please use the information in this pamphlet according to your situation at the time.
Traffic Accident Victim's Notebook
MLIT has created the “Traffic Accident Victim's Notebook” with the hope of providing support to automobile accident victims. The notebook allows victims and their families to record accident details and provides information about support systems available through police, local governments, and private victim support organizations. We also hope that it will provide support to all accident victims, and help to ease their concerns.