A governmental advisory panel recommended Tuesday that the insurance safety net system guarantee full claim payments to policyholders even when accidents occur three months after an insurer collapses.
Automobile, fire and overseas travel insurance would all be covered.
The step, included in a report a Financial System Council subcommittee has adopted, is intended to prompt individual policyholders to shift from collapsed firms to sound insurers during the three-month period.
Under the current system, 90 percent of insurance claim payments are guaranteed for holders of automobile, fire and overseas travel insurance policies. But those policyholders cannot accept 10 percent of their claims in the event their insurance companies collapse.
Based on the report, the Financial Services Agency plans to submit a bill to the Diet early next year.
The report calls for maintaining the current system guaranteeing 90 percent of insurance claim payments to holders of medical and nursing-care policies if nonlife insurers collapse.
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