Maximum 165 Million Won Liability for Drunk Driving Accidents... Electric Kickboards Also Covered by Car Insurance

Mandatory Insurance Drunk Driving Accident Deductible Improvement Plan

[Asia Economy Reporter Kangwook Cho] Starting from the 22nd, the driver’s deductible for drunk driving accidents will be increased to a maximum of 165 million KRW. Additionally, regulations clarifying compensation through automobile insurance subscribed by the injured person or their family in the event of an electric kickboard accident will be established.

The Financial Supervisory Service (FSS) announced on the 20th that it will revise the standard automobile insurance policy terms to include these changes in order to protect insurance consumers’ rights.

First, from the 22nd, the deductible that drivers must bear in drunk driving accidents will increase by 11 million KRW to a maximum of 165 million KRW. This is because the mandatory insurance’s bodily injury liability I deductible will rise from 3 million KRW to 10 million KRW, and property damage liability will increase from 1 million KRW to 5 million KRW.

Until now, the driver’s deductible for drunk driving accidents under mandatory insurance was up to 3 million KRW for bodily injury I and up to 1 million KRW for property damage. There was no deductible under voluntary insurance. As a result, insurance payouts for drunk driving accidents were passed on as premium increases to the majority of responsible drivers.

The FSS expects that by raising the deductible for mandatory insurance in drunk driving accidents, driver accountability will be strengthened, and insurance payouts due to drunk driving accidents will decrease by approximately 60 billion KRW annually, which is also expected to lead to a premium reduction effect estimated at 0.4%.

Injuries from electric kickboard accidents can be compensated through automobile insurance (uninsured motorist coverage) subscribed by the injured person or their family. The FSS plans to clearly guarantee electric kickboards under automobile insurance by newly defining “personal mobility devices” in the uninsured motor vehicle definition, effective from November 10. This measure addresses concerns arising from the revised Road Traffic Act classifying electric kickboards as “bicycles, etc.” (personal mobility devices), which had caused ambiguity regarding compensation under automobile insurance. The compensation limit for electric kickboard accidents will be adjusted within bodily injury I limits, including death (150 million KRW), first-degree injury (30 million KRW) to 14th-degree injury (500,000 KRW).

In automobile property damage accidents, transportation expenses paid when a replacement vehicle (rental) is not used will increase from the current 30% to 35% of the rental fee. For example, assuming a Grandeur (2.4) vehicle is repaired for 5 days, transportation expenses will rise from the current 240,000 KRW to 280,000 KRW, an increase of about 17%. This rental fee increase will be applied from the 10th of next month.

The employment age limit for farmers and fishermen under the standard automobile insurance policy will be raised from the current 65 to 70 years old. The FSS expects that with this policy revision, the lost income amount (insurance payout) for farmers and fishermen aged 65 who die in automobile accidents will increase from about 50 million KRW to 80 million KRW.

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