A growing number of local governments across Japan are making it mandatory for bicycle riders to take out liability insurance to cover medical and other costs of those they may injure in an accident. Given that a court could order damages of almost 100 million yen be paid in some cases, signing up for bicycle insurance is certainly worth considering -- even in areas where doing so is not mandatory.
A Tokyo metropolitan government ordinance requiring cyclists to take out insurance went into effect in April. According to the Land, Infrastructure, Transport and Tourism Ministry, as of April 1, it is now required or strongly recommended for bicycle riders to acquire such insurance.
Bicycles were involved in 39% of the about 30,000 traffic accidents that happened in Tokyo in 2019. Of these bicycle accidents, people aged 65 or older were involved in 20% -- the highest proportion of any age bracket.
Accidents involving elderly people could easily result in serious injury. In one case, a bicycle ridden by an elementary school student collided with a woman in her 60s, which left the woman unconscious and in critical condition. A court ordered the child's family to pay 95 million yen in damages.
The Tokyo metropolitan government conducted a simple survey, which revealed that more than 50% of Tokyo residents had bicycle insurance. However, an official of the government's traffic safety section said, "It seems many people have insurance policies that don't properly cover all accidents."
One popular type of insurance exclusively for bicycle riders offers an out-of-court settlement service and pays up to a limit of 100 million yen to 300 million yen to the injured party. Mitsui Sumitomo Insurance Co. offers an insurance plan that allows the holder to contact a call center for assistance if they are involved in an accident. The insurance plan will also handle out-of-court negotiations with the other party. People can sign up for this insurance online.
A maximum of 300 million yen will be paid to the other party in the accident to cover their treatment expenses, compensation and property damage. The annual premium for an insurance plan covering all members of a household, which pays 1,000 yen for each day they receive medical treatment as an outpatient, is 13,980 yen.
A person who already has fire, vehicle, accident or other insurance can pay an additional premium and receive greater coverage options.
Insurance companies give these policies different names, but Mitsui Sumitomo Insurance allows policyholders to add an annual payment of about 2,000 yen for special policies covering accidents that occur during daily life. It offers similar benefits to bicycle insurance, such as handling out-of-court settlements and a capped payment to a third party.
This is somewhat cheaper than newly signing up for bicycle liability insurance, but in some cases, it provides a narrower scope of coverage than specific insurance policies for cyclists.
The "TS Mark" sticker, which is affixed to your bicycle after a bicycle mechanic conducts a safety check or repairs, provides insurance that is valid for one year from the date the bicycle is inspected. Unlike regular insurance, the TS Mark provides coverage even if a family member or friend rides your bike.
There are two types of TS Mark insurance: one provides up to 10 million yen in damages to anyone you injure while riding your bicycle, and the other provides up to 100 million yen. Prices vary depending on the shop, but a bicycle check for a TS Mark that provides up to 100 million yen in coverage usually costs about 2,000 yen. This insurance has many restrictions, such as being limited to providing compensation for cases involving a serious injury with major aftereffects, so the TS Mark should be considered as the minimum in making sure that you are properly insured.
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