Accidents and Compensation for Damages

• If you are injured in a traffic accident, you may be able to claim the following expenses.

1. Treatment expenses
2. Hospitalization expenses
3. Miscellaneous expenses for hospitalization
4. Attendant nursing expenses
5. Transportation expenses for hospital visits
6. Lost income due to absence from work
7. Compensation for psychological distress during the treatment period
8. In the event that the ability to work is diminished due to your residual disability, lost income that would have been earned in the future
9. Compensation for psychological distress caused by residual disability
10. Expenses for nursing care required due to residual disability
11. The purchase cost of devices that must be worn due to a residual disability (including those that will be necessary in the future)
12. Expenses for home renovation or automobile modification required due to residual disability
13. Lawyers’ fees

(Explanation)
There is a complicated formula for calculating damages. Consult a lawyer or other specialist for details.

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• Using the civil lawsuit system, you will be able to claim money from the perpetrator by making your own claims and proving your case.

(Explanation)
・In a civil lawsuit, the court is asked to recognize the injurious act and the damage caused by it, and to order the perpetrator to pay compensation for damages. If a judgment is issued ordering compensation for damages, it will be possible to use this judgment as a basis for compulsory execution against the assailant’s assets.
・In civil lawsuits, it is necessary for the victim to prove tort on the part of the perpetrator and existence of the damage incurred. Various professional judgments will be required on how to collect evidence, how to organize the facts to be presented, and how to legally structure the case.

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• A tort is a deliberate (intentional) or inadvertent (negligent) infringement of the rights or legally protected interests of another person that causes damage.

(Explanation)
・Compensation for damages incurred as a result of a tort are paid by the person who caused the damage (the perpetrator) to the person who suffered the damage (the victim), but the scope of such damages is not limited to material damage, but also includes psychological harm (privacy, reputation, trust, etc.).
・In order to be held liable for damages caused by a tort, a person must have the ability to understand that their actions are legally reprehensible (capacity for responsibility), so if a person is incapable of acknowledging responsibility due to being a young child or having a mental disability, the person who has the duty to supervise that person will, in principle, be liable for damages.
・A person who makes profits by employing another person must also compensate for damages caused by someone they employ (employer’s liability). In principle, if the employer exercises sufficient care over those they employ, they will not be held liable under employer’s liability, but in practice it is usually the case that they are found to be liable.
・If the tort is defamation, in addition to compensation for damages, the victim can also ask the perpetrator to publish an apology or take other action to restore the victim’s reputation.
・In principle, the right to claim damages for tort is extinguished by prescription after 3 years from the time the victim or their legal representative becomes aware of the damage and the perpetrator.
・However, the prescription period for the right to claim damages for a tort that causes damage to a person’s life or physical well-being is 5 years from the time the victim or their legal representative becomes aware of the damage and the perpetrator.
・Even if the victim or their legal representative could not have known about the damage or the perpetrator, the victim will not be able to claim compensation for damages from the perpetrator after 20 years have passed from the time of the tort.

[Revision of the Civil Code (Law of Obligations)]
・The above explanation is based on the provisions of the revised Civil Code, which came into effect on April 1, 2020.
・Please note that the provisions prior to the revision may apply in cases where a tort was committed before the date of enforcement.

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• The prescription period varies depending on the nature of the damage and the cause of the damage.

(Explanation)
・The right to claim compensation for damages for non-performance (breach of contractual obligations, etc.) is extinguished by prescription after 5 years from the time when the creditor became aware that the right could be exercised or after 10 years from the time when the creditor was able to exercise the right.
・The right to claim damages for a tort (traffic accident, etc.) is extinguished by prescription after 3 years from the time the victim or their legal representative (person with parental authority, guardian, etc.) becomes aware of the damage and the perpetrator, or after 20 years from the time of the tort.
・However, if a person dies or is injured as a result of non-performance or tort, the statute of limitations is extended as follows.
(1) The prescription period for the right to claim damages for non-performance will be 20 years instead of 10 years.
(2) The prescription period for the right to claim damages for tort will be 5 years instead of 3 years.
・In some cases, individual laws (e.g., the Product Liability Act) may specify a different statute of limitations.
・For more information, consult with a lawyer, judicial scrivener, or other specialist.

[Revision of the Civil Code (Law of Obligations)]
・The above explanation is based on the provisions of the revised Civil Code, which came into effect on April 1, 2020.
・Please note that the provisions prior to the revision may apply in cases where the damage was incurred before the date of enforcement.

<<In cases where the provisions before the revision apply>>
・The prescription period for the right to claim damages for non-performance is 10 years from the time that the damage was incurred.
・The prescription period for the right to claim damages for tort is 3 years from the time the damage and the perpetrator are known. However, even if the perpetrator remains unknown, the right to make a claim will be lost after 20 years have passed from the time of the tort.

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• There are many traffic accidents in Japan, and about 10,000 people die in traffic accidents every year. If you are at fault, you will be liable for large amounts of compensation, so it is important to know about accidents and insurance in case the worst happens.

(1) Automobile liability insurance (compulsory insurance)
Automobile liability insurance (CALI) is a compulsory insurance for cars that covers only injury or death of the victim (*it does not cover damage to property). The maximum amount of compensation for each person is 30 million yen for death and permanent injury, and 1.2 million yen for personal injury.

(2) Voluntary insurance
At present, there are numerous cases where compensation for death or permanent injury amounts to hundreds of millions of yen, and medical treatment expenses amount to tens of millions of yen. This means that compulsory liability insurance alone is insufficient. Voluntary insurance covers compensation for people for whom liability insurance is insufficient, and it can also cover the other party’s property and car, as well as your own injuries. Having voluntary insurance ensures peace of mind, even if it costs a little more.

(3) If you are involved in a traffic accident, call an ambulance first if you are injured, then the police. After that, contact with your company or a consultation service. If you rush to settle the case on your own, you may face serious problems later.

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