Ensuring Practical Compensation for Disaster Safety Public Damage ... System Improvement for 30 Types of Mandatory Insurance

[Asia Economy Reporter Jo In-kyung] The government will regulate the compensation limits of various mandatory disaster safety insurance policies to ensure that citizens affected by disasters or accidents receive practical compensation, and prohibit the seizure of insurance payouts so that victims can maintain a minimum standard of living.

The Ministry of the Interior and Safety announced on the 9th the promulgation of an amendment to the "Framework Act on Disaster and Safety Management," which strengthens the comprehensive management function of mandatory disaster safety insurance policies.

Mandatory disaster safety insurance refers to insurance and mutual aid that are compulsory to join in order to compensate for damages to life, body, or property caused by disasters or accidents. Currently, 30 types of insurance under the jurisdiction of 14 ministries are mandated, including Tourism Business Liability Insurance, Daycare Center Liability Insurance, Gas Accident Liability Insurance, and Elevator Accident Liability Insurance.

However, since these insurances have been individually introduced and operated as needed, compensation levels vary by insurance and often do not meet appropriate standards. Additionally, information management such as subscription status has not been systematized, resulting in shortcomings.

The amendment stipulates the compensation limits of these insurances at the level of automobile liability insurance (KRW 150 million per person for bodily injury) to adequately compensate for damages to life and body caused by disasters or accidents, and establishes grounds to encourage or sanction those who have not subscribed.

It also restricts insurance providers related to mandatory disaster safety insurance from refusing contract conclusion or canceling/terminating contracts without just cause, prohibits seizure of insurance claim rights, and sets standards that related laws and regulations must meet.

The government will evaluate the laws and operational matters such as compensation limits of related ministries and recommend improvements or establish a comprehensive maintenance plan to ensure effective implementation if standards are not met.

Furthermore, a comprehensive information system will be established to verify subscription status of mandatory disaster safety insurance in real time, preventing cases where victims fail to receive compensation due to non-subscription, and enabling prompt compensation through shared use of the information system.

As a follow-up to this legal amendment, the Ministry of the Interior and Safety plans to form a task force including related ministries, the Korea Insurance Development Institute, insurance companies, and private experts to prepare subordinate legislation amendments and efficient plans for building and operating the comprehensive information system.

Ahn Young-gyu, Director of Disaster Management at the Ministry of the Interior and Safety, said, "Through integrated management of mandatory disaster safety insurance, we will strengthen the social safety net so that citizens affected by disasters or accidents can receive appropriate compensation," and urged, "Related ministries should actively cooperate to promptly improve the mandatory disaster safety insurance system."

This content was produced with the assistance of AI translation services.