Tokyo

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Insurance

Introduction to common types of insurance, such as health, car, and life insurance.

Sections

Overview:

Health insurance is mandatory in Japan, and there are two main types:

  • National Health Insurance (NHI) (ๅ›ฝๆฐ‘ๅฅๅบทไฟ้™บ, Kokumin Kenkล Hoken): For self-employed individuals, students, part-time workers, and retirees.
  • Employee Health Insurance (EHI) (็คพไผšไฟ้™บ, Shakai Hoken): For full-time employees working at companies.

Both systems provide extensive coverage for medical treatments, hospitalizations, and prescriptions, with patients typically paying only 30% of the total medical costs (the government covers the remaining 70%).

Costs:

  • National Health Insurance (NHI):

    • Premiums are calculated based on your income, assets, and household size.
    • For low-income earners, premiums can range from ยฅ10,000 to ยฅ20,000 per month.
    • Higher-income earners may pay up to ยฅ50,000 per month.
    • Discounts are available for students and low-income households.

  • Employee Health Insurance (EHI):

    • Premiums are deducted directly from your salary.
    • Typically, 9-10% of your monthly salary is allocated to health insurance, with your employer covering half of this amount.

How to Obtain Health Insurance:

For National Health Insurance (NHI):

  1. Register at your local ward office (ๅŒบๅฝนๆ‰€, Kuyakusho):
    • Bring your residence card (ๅœจ็•™ใ‚ซใƒผใƒ‰, Zairyลซ Kฤdo), passport, and proof of address.
    • Fill out the application form for NHI.
  2. Receive your health insurance card (ไฟ้™บ่จผ, Hokenshล) on the spot or within a few days.
  3. Pay your premiums monthly via bank transfer, convenience stores, or at the ward office.

For Employee Health Insurance (EHI):

  1. Your employer will handle the registration process for you.
  2. You will receive your health insurance card from your employer.

Cultural and Legal Considerations:

  • Always carry your health insurance card with you, as it is required when visiting clinics or hospitals.
  • Japan has a universal healthcare system, so even foreigners are expected to enroll in health insurance within 14 days of moving to Japan.
  • Failure to enroll can result in backdated payments for the period you were uninsured.

2. Car Insurance in Tokyo, Japan

Overview:

Car insurance is mandatory in Japan and is divided into two types:

  1. Compulsory Automobile Liability Insurance (CALI) (่‡ช่ณ ่ฒฌไฟ้™บ, Jibaiseki Hoken): Required by law and covers injuries or deaths caused to third parties.
  2. Voluntary Insurance (ไปปๆ„ไฟ้™บ, Nini Hoken): Optional but highly recommended, as it provides additional coverage for property damage, personal injury, and vehicle repairs.

Costs:

  • CALI:
    • Costs are fixed and depend on the type of vehicle.
    • For a standard passenger car, CALI costs around ยฅ25,000 to ยฅ30,000 per year.
  • Voluntary Insurance:
    • Premiums vary based on factors such as your driving history, age, and vehicle type.
    • Expect to pay between ยฅ50,000 and ยฅ100,000 per year for comprehensive coverage.

How to Obtain Car Insurance:

For CALI:

  1. CALI is typically included when you register your vehicle or renew your carโ€™s inspection (่ปŠๆคœ, Shaken).
  2. The dealership or car registration office will handle the process.

For Voluntary Insurance:

  1. Research and compare insurance providers (e.g., Sompo Japan, Tokio Marine, or Aioi Nissay Dowa).
  2. Provide the following documents:
    • Vehicle registration certificate (่ปŠๆคœ่จผ, Shaken-shล).
    • Driverโ€™s license.
    • Proof of CALI.
  3. Choose your coverage options and pay the premium.
  4. Receive your insurance policy and keep it in your vehicle.

Cultural and Legal Considerations:

  • Driving without CALI is illegal and can result in severe penalties, including fines and imprisonment.
  • Japanese roads are narrow, and accidents are common, so voluntary insurance is highly recommended.
  • Insurance premiums may be higher for foreigners with international driving permits, as they are considered less experienced with Japanese traffic laws.

3. Property Insurance in Tokyo, Japan

Overview:

Property insurance in Japan is not mandatory but is highly recommended, especially for renters and homeowners. It typically includes:

  • Fire Insurance (็ซ็ฝไฟ้™บ, Kasai Hoken): Covers damage caused by fire, lightning, explosions, and natural disasters.
  • Comprehensive Property Insurance: Includes fire insurance and additional coverage for theft, water damage, and earthquakes.

Costs:

  • For renters, property insurance costs around ยฅ10,000 to ยฅ20,000 per year.
  • For homeowners, premiums range from ยฅ20,000 to ยฅ50,000 per year, depending on the propertyโ€™s value and location.
  • Earthquake insurance (ๅœฐ้œ‡ไฟ้™บ, Jishin Hoken) is optional and costs an additional ยฅ5,000 to ยฅ10,000 per year.

How to Obtain Property Insurance:

  1. For Renters:

    • Most landlords require tenants to purchase property insurance as part of the lease agreement.
    • Your real estate agent will usually recommend an insurance provider.
    • Provide your lease agreement and personal details to the insurance company.
    • Pay the premium upfront or in installments.

  2. For Homeowners:

    • Contact an insurance provider directly or through your mortgage lender.
    • Provide details about your property, including its size, location, and construction materials.
    • Choose your coverage options and pay the premium.

Cultural and Legal Considerations:

  • Earthquakes are common in Japan, so purchasing earthquake insurance is strongly advised.
  • Many landlords will not rent to tenants without proof of property insurance.
  • Policies often exclude coverage for damage caused by negligence, so take precautions to prevent accidents (e.g., turning off gas stoves when not in use).

General Tips for Navigating Insurance in Tokyo:

  1. Language Barrier:

    • Most insurance documents are in Japanese. Consider hiring a translator or asking a Japanese-speaking friend for assistance.
    • Some international insurance companies in Japan offer English support (e.g., Allianz, AXA).

  2. Payment Methods:

    • Premiums can usually be paid via bank transfer, credit card, or at convenience stores.
    • Setting up automatic payments is common and ensures you donโ€™t miss deadlines.

  3. Shop Around:

    • Compare policies and premiums from multiple providers to find the best deal.
    • Use online comparison tools or consult an insurance broker.

  4. Cultural Sensitivity:

    • Japanese people value punctuality and thoroughness. Be prompt with payments and provide all required documents to avoid delays.

  5. Legal Compliance:

    • Always ensure you meet the legal requirements for mandatory insurance (e.g., health insurance and CALI).

By understanding the insurance system in Tokyo and following the steps outlined above, you can ensure you are well-protected and compliant with local laws. If you need further assistance, feel free to ask!