Assemblyman Kim Hoe-jae, 55.4% of Motorcycles Uninsured... Need for Establishment of Mutual Aid Association Raised

Average Insurance Premium for Paid Delivery Motorcycles 1.84 Million Won, 11 Times Higher Than Personal Use
High Paid Insurance Premiums Lead to Uninsured Coverage
Motorcycle Accidents and Injuries Continue to Rise
Need to Establish Mutual Aid As

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Kim Hoe-jae, a member of the National Assembly (Yeosu Eul, Jeonnam), raised the necessity of establishing a motorcycle mutual aid association as a solution to the blind spots in motorcycle insurance, such as compensation issues in case of accidents, citing the low insurance subscription rate for motorcycles.

According to the motorcycle registration and mandatory insurance subscription status disclosed by Kim Hoe-jae of the Democratic Party of Korea (Yeosu Eul, Jeonnam) on the 5th, among the total 2,264,000 motorcycles registered for use as of July this year, 1,255,000 motorcycles were uninsured, showing that more than half (55.4%) of motorcycles are not insured.

Under the current Automobile Management Act, automobiles are subject to mandatory insurance subscription, and since November 25, 2011, light motorcycles (two-wheelers) under 50cc have also been included as automobiles under the Automobile Management Act, making motorcycles subject to mandatory insurance subscription as well.

Assemblyman Kim pointed out that the low motorcycle insurance subscription rate is likely due to high insurance premiums.

In fact, the average insurance premium for two-wheel vehicles (as of April this year) is 159,000 KRW for personal use and 434,000 KRW for non-commercial (direct purchase by business), whereas the most commonly used delivery type nowadays, the ‘delivery agency motorcycle’ (commercial use), costs 1,847,000 KRW, which is four times higher than non-commercial and eleven times higher than personal use.

Considering that the overall two-wheel vehicle insurance subscription rate is 45%, it is estimated that the insurance subscription rate for delivery agency two-wheel vehicles with high premiums is much lower, but currently, neither the Ministry of Land, Infrastructure and Transport nor the insurance industry compiles statistics related to commercial and non-commercial use.

Meanwhile, motorcycle traffic accidents have been continuously increasing.

Motorcycle accidents, which numbered 10,950 in 2010, increased to 11,758 in 2014, then to 15,032 in 2018, and 18,467 last year.

The number of deaths caused by motorcycle accidents averaged over 400, but the number of injuries increased by about 10,000 over ten years, from 13,142 in 2010 to 23,584.

Assemblyman Kim Hoe-jae said, “Although motorcycles are subject to mandatory insurance subscription, the subscription rate is low due to high premiums, and delivery is increasing. In case of accidents, victims cannot receive proper compensation, and uninsured motorcycle accident drivers may face financial ruin due to accident compensation.” He added, “Since taxis and buses have established mutual aid associations under current law to resolve insurance premium issues, the Ministry of Land, Infrastructure and Transport, as the competent authority, should take an active stance in discussing the establishment of a delivery motorcycle mutual aid association.”

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