Indemnification and NOC Compensation
To help you understand insurance and compensation for rental cars, we will explain the two systems of indemnification and NOC (non-operation charge) compensation.
In the event of an accident involving a rental car user, the car rental company may suffer business losses in addition to damages to people, property and the rented car.
Insurance covers damages to people and property but not the car rental company’s loss of business.
The system that exempts the customer from liability costs (deductible) within the scope of the insurance coverage is called indemnification and the system that exempts the customer from claims of business loss to the car rental company is called “NOC Compensation”.
This website provides information on indemnification in the plans for each car rental company.
The conditions of the insurance differ from plan to plan, so please check the plan details carefully.
Even with indemnification, you will be responsible for any damage in excess of the insurance benefit.
Even with indemnification, the insurance may also not cover damages that were not reported to the police or that fall under the insurance policy’s exclusions, violations of the rental agreement or situations in which the customer is found responsible for the use or management of the vehicle.
Please note that insurance coverage also differs by car rental company.
For details, please contact the rental company directly.
About Indemnification
Without indemnification, you are responsible, up to a certain amount, for any damages covered by the insurance.
This fixed amount is known as the deductible.
The amount of the deductible depends on the insurance coverage of the car rental company and the class of car you rent, but it can be quite expensive, ranging from 50,000 to 200,000 yen.
By also enrolling in what is known as indemnity coverage when renting a vehicle, the car rental company bears the cost of the deductible in place of the customer.
Each car rental company plan on this website has different conditions for enrolling in indemnity coverage.
Some plans already include this coverage in the rental fee, while other plans allow customers to choose their own coverage.
Please confirm on the details screen for the plan.
About NOC Compensation
When a car rental company’s loss of business is not covered by indemnification, the customer will always be billed separately.
This fixed amount to be paid by the customer is called a Non-Operation Charge (NOC).
The NOC applies not only to accidents, but also to damage to the car's interior (burn holes in the seats, etc.), theft, hit-and-run damage, or other events that make it impossible to rent the car to another customer.
