Traffic Accidents

Compensation amounts vary dramatically depending on which of Japan's three standards is applied.

Compulsory insurance (Jibaiseki) standard: The statutory minimum under the Automobile Liability Security Act. Per-victim limits: injury ¥1.2M, disability ¥750K-40M (by grade), death ¥30M. Formulaic calculations often undervalue actual losses.

Voluntary insurance standard: Each insurer's internal guidelines. Slightly higher than compulsory but below court standards. Specific criteria are not publicly disclosed.

Court (attorney) standard: Based on published case law compilations — the "Red Book" and "Blue Book." The highest of the three standards, typically applied when an attorney is retained.

Initial insurance company offers are commonly 50-70% of court standards. Attorney involvement frequently results in increases of 2-3x, especially in cases involving disability.

Actual expenses: Treatment costs, transportation, hospitalization sundries (¥1,500/day court standard), assistive devices, nursing care.

Lost income: Work absence compensation (homemakers can claim based on female average wages from wage census data). Future lost earnings for disability cases calculated as base income x loss-of-capacity rate x Leibniz coefficient.

Consolation money: Hospitalization/outpatient (e.g., 1 month hospitalization ≈ ¥530K court standard); Disability (Grade 14: ¥1.1M to Grade 1: ¥28M); Death (primary earner ¥28M, spouse/mother ¥25M, others ¥20-25M).

Negligence ratios (contributory negligence, Civil Code Art. 722-2) directly reduce compensation amounts.

Standard ratios are published in "Hanrei Times Bessatsu No. 38." Base ratios are adjusted by modification factors.

Typical examples: Straight-through vs. right-turning at signaled intersection: 20:80; Red-light runner vs. green: 100:0; Rear-end collision: 100:0; Pedestrian on crosswalk vs. car: 0:100; Pedestrian jaywalking vs. car: 20:80.

Modification factors: Speeding (+10-20), intoxication (+10-15), gross negligence (+20), failure to signal (+10).

If the insurer's proposed ratio seems unfair, an attorney can negotiate using dashcam footage and police accident investigation reports.

After treatment reaches "symptom fixation" (no further improvement expected), remaining symptoms can be certified under 14 disability grades per the enforcement order appendix.

Grades and consolation (court standard): Grade 1 (nursing care required): ¥28M; Grade 7: ¥10M; Grade 11: ¥4.2M; Grade 14: ¥1.1M.

Whiplash: The most common traffic accident disability. May qualify as Grade 14-9 (neurological symptoms) or Grade 12-13 (persistent neurological symptoms). MRI findings often determine the distinction.

Application methods: Pre-certification through the opposing insurer (convenient but risk of selective evidence) or victim's direct claim (Jibaiseki Act Art. 16, allows submission of favorable medical records — preferred when represented by an attorney).

Appeals: Dissatisfied applicants may submit new medical evidence for reconsideration, apply to the Dispute Resolution Organization, or pursue litigation.

Typical process: Accident → police report → treatment (health insurance usable with third-party injury notification) → symptom fixation → disability certification (if applicable) → damage calculation → settlement negotiation → resolution.

Settlement caution: Signing a settlement agreement generally bars additional claims, except for unforeseeable complications discovered later (per case law). Attorney review before signing is strongly recommended.

Traffic Accident Dispute Resolution Center: A public-interest foundation where attorneys mediate for free. Insurers are generally bound by the Center's decisions, often achieving faster and more favorable outcomes than litigation.

Statute of limitations: Property damage: 3 years from the accident (Civil Code Art. 724-2). Personal injury: 5 years from the accident or symptom fixation date (Art. 724-2, 2020 reform). Hit-and-run with unknown perpetrator: 20 years.