Fishermen's Insurance Premiums Now Payable by Credit Card

Ministry of Oceans and Fisheries to Enforce Partial Amendments to the 'Fishermen and Fishing Vessel Disaster Compensation Insurance Act' and Enforcement Decree from the 19th

From this 4th quarter's insurance premium payments,
the delinquency interest cap is lowered from 28.8% to 5%

[Asia Economy Reporter Joo Sang-don] Going forward, fishing vessel crew accident compensation insurance premiums can be paid not only directly at Suhyup Bank but also by credit card. This is intended to enhance convenience for fishermen.

On the 18th, the Ministry of Oceans and Fisheries announced that the partial amendment to the Enforcement Decree of the "Fishing Vessel Crew and Vessel Accident Compensation Insurance Act" was passed at the Cabinet meeting and will be enforced on the 19th along with the previously amended "Fishing Vessel Crew and Vessel Accident Compensation Insurance Act."

Fishing vessel crew accident compensation insurance is an industrial accident compensation insurance (workers' compensation insurance) in the fishing vessel sector, where the vessel owner pays the insurance premium to protect the crew, and the injured crew receives insurance benefits. The fishing vessel accident compensation insurance is a policy insurance that pays insurance money to restore coastal fishing vessels that have suffered accidents.

On February 18 of this year, the Ministry of Oceans and Fisheries amended the Fishing Vessel Crew and Vessel Accident Compensation Insurance Act to establish a legal basis for paying insurance premiums for fishing vessel crew and vessels by credit card. Until now, insurance premiums for fishing vessel crew and vessels had to be paid in cash by visiting Suhyup Bank or local branch offices of regional Suhyup cooperatives, or automatic transfer was only possible for insured persons holding a Suhyup account.

The recently passed partial amendment to the enforcement decree designates credit card payment agencies delegated by law, includes matters related to the scope of fees, and contains system improvements to alleviate the burden on fishermen.

First, insurance premiums for fishing vessel crew and vessels can be paid to institutions designated by the National Federation of Fisheries Cooperatives (Suhyup Central Association). When paying premiums by credit card, the payer must also pay a fee within the range of 1%. To enhance transaction convenience for fishermen, Suhyup Central Association plans to expand collection transfer services using accounts from other banks besides Suhyup Bank automatic transfers and newly establish a virtual account payment service. Currently, the system is being improved to implement this, and it is planned to be enforced starting from the 4th quarter premium payments for fishing vessel crew and vessels.

The delinquency interest cap on fishing vessel crew insurance premiums will be significantly lowered from the existing 28.8% to a 5% limit. Previously, if the initial premium payment deadline passed, the insurance contract holder had to pay delinquency interest calculated pro rata at 9.6% per year and up to 28.8% over three years. Compared to similar insurances such as health and industrial accident insurance, where the maximum delinquency interest cap is between 5% and 9%, this was a high level.

With this amendment to the enforcement decree, the delinquency interest cap will be lowered to a maximum of 2% for up to 30 days after the initial premium payment deadline and a maximum of 5% for up to 210 days thereafter. The reduction in delinquency interest applies from the 19th to premiums whose initial payment deadlines arrive, and will not be applied retroactively to premiums that were notified and unpaid before the amendment.

Lee Kyung-gyu, Director of Fisheries Policy at the Ministry of Oceans and Fisheries, said, "Through the enforcement of the Fishing Vessel Crew and Vessel Accident Compensation Insurance Act and its partial amendment to the enforcement decree, fishing vessel crew accident insurance for fishermen is expected to operate more effectively."

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