Delivery Rider Insurance with Reduced Premiums to Launch at the End of This Month

[Asia Economy Reporter Kim Hyo-jin] An insurance product that reduces delivery riders' insurance premium burden by up to 23% (430,000 KRW) will be launched at the end of this month.

The Financial Services Commission and the Financial Supervisory Service announced on the 15th an improvement plan for motorcycle insurance subscribed to by delivery riders.

The financial authorities decided to introduce a deductible system, currently applied to own-damage coverage in automobile insurance, to the personal injury I and property damage coverage of motorcycle insurance as well.

Delivery riders can choose a deductible amount from 0 KRW, 250,000 KRW, 500,000 KRW, 750,000 KRW, or 1,000,000 KRW.

In this case, the insurance premium discount rate is set at approximately 6.5% to 20.7% for personal injury I and 9.6% to 26.3% for property damage.

If the deductible is set at 1,000,000 KRW, the insurance premium will be 1,490,000 KRW, which is 390,000 KRW (21%) lower than the average premium of 1,880,000 KRW in the first half of this year.

Discounts are also available when choosing deductibles of 250,000 KRW (140,000 KRW↓, 7%), 500,000 KRW (250,000 KRW↓, 14%), and 750,000 KRW (330,000 KRW↓, 18%).

Twelve non-life insurance companies will start selling insurance products with the newly established deductible from the end of this month.

Meanwhile, from now on, motorcycles used for paid transportation will only be eligible for compensation for accidents occurring during paid transportation if subscribed to paid transportation insurance products, not household or business-use insurance products.

This measure aims to prevent cases where some riders exploit shortcomings in the current terms and conditions by subscribing to household or business-use insurance products instead of the relatively expensive paid transportation insurance products.

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