TOKYO -- Tokio Marine & Nichido Fire Insurance will become the first Japanese company to provide insurance against auto accidents involving self-driving vehicles, aiming to avoid long waits for compensation as well as tackle a looming market shift.
Self-driving technology is categorized in levels, with level 1 encompassing automated systems controlling acceleration, deceleration or steering and level 2 involving two or three of such operations, as with Nissan Motor's Serena Minivan and Tesla Motors' Model S. While level 3 vehicles -- which require driver input only in emergencies -- are not on the market yet, the Tokio Marine Holdings unit plans to offer insurance up to this point. Policyholders will receive the coverage free of charge starting next April.