insurtech 14/December/2019

Insurtech News > Japan adopts ordinances mandating bicycle insurance

In Japan, the rate of bicycle use is increasing day by day. In addition to this, the quantity of bicycle rental businesses are increasing.  Specialists stress that cyclists need to be responsive to the importance of taking out insurance. Local governments make laws for bicycle riders and rental firms to use insurance.

Insurance firms and local governments in Japan saw a series of court rulings ordering substantial payouts once pedestrians are killed or seriously injured in accidents. In this regard, Takenobu Kato, a 21-year-old worker at a bicycle store in the city of Kagoshima, asks customers if they are covered by bicycle insurance. If they are not, they should do it. It’s in the cause of their own good.

I recommend that they take out insurance because it becomes their biggest problem if they cannot pay the cost of treatment for people they have injured,”  Takenobu Kato said.

When we check some data regarding this,  nationwide in 2017, there were 2,550 collisions between cyclists and pedestrians and 2,749 between cyclists, up in each class from the previous year, according to the record of government. The Hyogo Prefectural Government in 2015 introduced an ordinance requiring cyclists to get insurance policies. With this ordinance, also paving the way for other local governments to sue them. End of November, Hyogo and 10 other prefectures, as well as seven designated major cities, required bicycle users to get insurance. Also, thirteen prefectures and three major cities had ordinances powerfully recommending it, while not making it necessary.

Insurance firms supply policies with a large vary of costs.  Including those that can be taken out for several hundred yen per month or thousands of yen per year and pay indemnities of hundreds of millions of yen. In this way, they aim to achieve all cyclists with completely different budgets.