Health & Protection in Japan

The moment you start planning financially, one key factor that you should not forget is insurance. A huge number of expats overlook the importance of making precautions such as insuring themselves and their assets. Being overseas on assignment does not necessarly mean that your employer is covering you for everything. Let us walk you through some of the particularities of the market in the country and what it means for everyone being posted to Japan.

Getting Insurance

Expats who are part of a relocation package usually have health insurance from their employers. You should ask the Human Resource office of your company if your dependents are covered as well, cause if not, you can get coverage from the international and local brokers. AXA Global Healthcare is one of the multinational companies that offer comprehensive health care to expats in Japan. You can also contact Fukoku Mutual Life Insurance Company, the country’s leading life insurer.

Before signing any contract, make sure that the company you're dealing with is accredited by the Financial Services Agency. You can also seek help from this government sector in case your provider makes any sudden changes or violates any agreement in your policy.

Once you've made up your mind on which type of product to purchase, try and identify a good agent or broker. Your human resource department can be a good start to help and point out a provider.

Importance of Insurance

Expats moving to Japan should know that it has always been prone to natural disasters. The most common are earthquakes, tsunamis, typhoons and floods. The country is implementing high precautionary measures, but you also have to do your part. One way for you to minimise the damage after a hit is by getting property insurance.

Local Insurance in Japan

The Japanese insurance industry has always been stable and moving towards steady growth. It is the second largest after the United States with a total premium of $478 billion dollars as combined revenue from the life and non-life insurers. All of these providers are being regulated and supervised by the government thru the Financial Services Agency.

Expats in Japan are required by law to be covered by CALI or Compulsory Automobile Liability Insurance. CALI should cover the driver and third party or passengers (under the insured’s permission). The liability is also limited to ¥30 million for death, ¥1.2 million for injury and ¥750,000-¥40 million for residual liability. However, CALI does not cover any repair of damage or replacement of the vehicle so expats can shop around for other types of insurance that can cover that aspect.

All Japanese citizens, permanent residents and expats who are working in Japan with work permit for more than three months are required to be enrolled to the Kokumin-Kenkō-Hoken (National Health Insurance) or Kenkō-Hoken (Employees’ Health Insurance). These health schemes allow all members to take advantage to the free or subsidised medical service in any hospital in the country.

You can also get coverage from companies offering international plans as there's a high possibility that they can provide you exactly what type of plan you are looking for. International insurance is mostly designed to cater the needs and lifestyle of expats abroad and can give you emergency service or healthcare anywhere you are in the country and can be transferred with you to your next destination.