Since traffic accidents are decreasing due to refraining from going out due to the spread of the new coronavirus infection, people with automobiles and motorcycles are obliged to join the liability insurance = automobile liability insurance premiums are this April It will be reduced from the contract for the second consecutive year.
Automobile liability insurance is compulsory insurance that people with automobiles and motorcycles are obliged to take out in case of a traffic accident, and the Council of the Financial Services Agency examines whether the premium is appropriate every year.
At the council held online on the 13th, officials from the non-life insurance industry and the Financial Services Agency announced last year that they refrained from going out due to the spread of the new coronavirus infection in addition to the spread of safety technologies such as automatic braking. He explained that the number of people who died in traffic accidents fell below 3,000 for the first time.
Automobile liability insurance is a mechanism that is operated so that there is no profit or loss, and as the number of traffic accidents decreases, the amount of insurance money actually paid is less than expected, so the insurance premium will be charged from the contract in April. The policy to reduce it was approved.
The compulsory automobile liability insurance premium has been reduced by an average of 16% from the contract amount in April last year, which is the second consecutive year of reduction.
The FSA's council will decide on a specific reduction at its next meeting on the 18th of this month.