Record Rainfall Nationwide Leads to Continuous Damage Claims Including 'Fungsuhae Insurance'

240 Reports Received During July-August Monsoon Period
Damage Scale Expected to Increase Further
Over 8,200 Agricultural Crop Insurance Claims Filed

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Record-breaking heavy rains are pouring down across the country, causing widespread flooding damage. The concentrated heavy rainfall in narrow areas is exacerbating the damage compared to previous years. Due to the influence of Typhoon No. 4, 'Hagupit,' strong rain is forecasted to continue, and as recovery efforts are currently underway, the insurance industry expects the scale of damage to increase further.

According to the insurance industry on the 4th, damage claims for flood and windstorm insurance and crop disaster insurance have been continuously reported during the rainy season in July and August.

The number of flood and windstorm insurance claims handled by five non-life insurers, including Samsung Fire & Marine Insurance, reached about 240 cases as of the afternoon of the 3rd. The estimated loss amount is about 1.1 billion KRW, but the scale is expected to increase as more specific damage cases are confirmed.

An official from an insurance company explained, "After the heavy rain in the central region, many damage reports have been received mainly from Gyeonggi and Chungcheong areas," adding, "There are still areas where the damage scale has not been estimated, and as recovery progresses, the damage scale is expected to increase additionally."

[Image source=Yonhap News]

Flood and windstorm insurance is a representative policy insurance that compensates for flood damage to houses or facilities caused by heavy rain. It is managed by the Ministry of the Interior and Safety and can be subscribed to through five non-life insurers: Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, KB Insurance, and NH Nonghyup Insurance.

The insurance coverage targets include apartment and detached houses, greenhouses including vinyl houses, small business owners' stores or factory buildings, and machinery. It covers losses caused by natural disasters such as typhoons, floods, tidal waves, strong winds, heavy snow, and earthquakes, providing compensation up to 90% of the restoration standard amount when a disaster occurs.

By subscribing to indemnity-type products like the indemnity-type small business flood and windstorm insurance, it is also possible to receive compensation based on the actual loss amount. Additionally, since the government supports 50-90% of the total insurance premium, it is characterized by allowing preparation for flood and windstorm damage at a low cost.

The subscription period is on a one-year basis and automatically expires after the period, so it must be renewed every year. The insurance premium varies depending on the value of the insured object, but rural detached houses only need to pay about 50,000 to 60,000 KRW annually.

Crop damage during this rainy season is also severe. The number of crop disaster insurance claims received by Nonghyup Insurance reached 8,257 cases as of the afternoon of the 3rd. Currently, damage assessment work is being conducted at the damage sites. Crop disaster insurance currently covers yield reductions and facility damage caused by natural disasters for about 60 crops.

An insurance industry official advised, "Natural disasters like this year's heavy rain are unpredictable," and added, "To reduce the economic burden caused by disaster damage, it is advisable to subscribe to insurance in advance."

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