PL Insurance Schemes and the Role of Insurance Companies in Japan

摘要

Two years have passed since the Product Liability Law (PL Law) was put into force on July 1, 1995. Since the PL Law adopted the principle of "strict tort liability," which is similar to the "consumer expectations standard" (defining defects as "lack of safety that the product ordinarily should provide") in the U.S. and Europe, it was feared that lawsuits would increase to a level equal to that found in the U.S. On the contrary, not only because of the differences in the social background including the judicial system between Japan and the U.S., but also the preparations for PL Law implementation made by many companies and their sincere efforts to prevent future accidents realized the smooth "take off" of the PL Law among both companies and consumers in Japan.