Launch of “Automobile Insurance for Mobility Service Providers”, addressing ridesharing in Japan

Tokyo Marine & Nichido Fire Insurance will begin selling “Automobile Insurance for Mobility Service Providers” that addresses the Japanese version of ridesharing, which utilizes local private cars and drivers to provide transportation services in cases where taxis are insufficient, from January 2025.

This insurance policy, with mobility service providers utilizing the Japanese version of ridesharing as the policyholders, provides coverage that takes priority over the automobile insurance contracted by rideshare drivers in the event of an accident. Additionally, for the first time in the non-life insurance industry, the company has realized an automobile insurance for mobility service providers that calculates premiums on an hourly basis, enabling subscription at rates that reflect the actual service provision.

Background

With the significant decrease in taxi demand due to the COVID-19 pandemic, the number of taxi drivers nationwide has declined, and driver shortages have continued even after the pandemic subsided. Meanwhile, with the rapid increase in inbound tourists, there have been situations where it’s difficult to catch a taxi depending on the region, season, and time of day.

In this context, to address serious social issues such as the lack of transportation means for residents due to the reduction in local transportation, the Japanese version of ridesharing was established in April 2024 and is being provided through taxi companies.

Since February 2021, Tokyo Marine Nichido has been selling “Automobile Insurance for Mobility Service Providers” to municipalities and NPOs that provide paid passenger transportation services using private vehicles, aiming to secure means of transportation in provincial cities and depopulated areas. By paying insurance claims that take priority over the automobile insurance contracted by drivers, the company has been supporting the securing of drivers and the operation of a more reassuring system by reducing the economic burden on drivers in the event of accidents.

Now, in light of the establishment of the Japanese version of ridesharing, Tokyo Marine Nichido is launching the sale of “Automobile Insurance for Mobility Service Providers” that calculates premiums on an hourly basis, adding personal injury insurance and towing services to the lineup of coverages in addition to the conventional bodily injury and property damage liability coverage.

Product Overview

Tokyo Marine Nichido will begin providing “Automobile Insurance for Mobility Service Providers” that addresses the Japanese version of ridesharing from January 2025.

With mobility service providers utilizing the Japanese version of ridesharing as the policyholders, this insurance provides coverage that takes priority over the automobile insurance contracted by rideshare drivers in the event of an accident.

Coverage Overview

• Bodily Injury and Property Damage Liability Insurance: Pays insurance claims when rideshare drivers etc. are legally liable for damages due to injuring others or damaging others’ property such as cars or walls during mobility service provision.
• Personal Injury Insurance: Covers treatment costs, lost wages, mental anguish, lost future earnings, nursing care fees, funeral expenses, etc., in case rideshare drivers or passengers are injured, die, or suffer residual disability due to accidents during mobility service provision.
• Road Assistance: Provides towing services to repair shops etc. and pays necessary costs (vehicle transportation costs, etc.) when the vehicle becomes inoperable due to accidents etc. during mobility service provision.

Additionally, as the Japanese version of ridesharing assumes that drivers may work on an hourly basis, the company will, in principle, underwrite policies by calculating premiums on an hourly basis.

This is the industry’s first introduction of an underwriting method with hourly premium calculation for automobile insurance addressing the Japanese version of ridesharing for mobility service providers.

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