Japan to add new levy to auto insurance for the victims of traffic accident

Japan's transport ministry has planned a new annual levy of about one dollar that will be added to compulsory automobile insurance premiums from April.

The new levy is based on a revision of the act on securing compensation for automobile accidents.

The ministry plans to use the levy to operate facilities where people who have been severely injured can receive treatment. It will also use the extra revenue to implement measures to prevent automobile accidents.

The current levy raises funds to help the victims of hit-and-run accidents and other people who cannot claim insurance payments.

The ministry has decided that the new levy will be 125 yen, or about one dollar, per year for cars. It will be 150 yen for buses, trucks and taxis, and 100 yen for motorcycles and emergency vehicles.

The ministry expects the levy will generate about 10 billion yen, or about 77 million dollars, in annual revenue.