'Insurance Cancellation Also Available Remotely'... Insurance Business Act Amendment Proposed

Proposed by Kim Han-jung, Member of the Democratic Party of Korea

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] A bill to amend the Insurance Business Act to allow insurance cancellations to be made non-face-to-face has been proposed. Until now, anyone could sign up for insurance non-face-to-face using a phone or computer, but canceling an insurance contract non-face-to-face was not possible without prior consent.

On the 27th, Kim Han-jung, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, announced that he had taken the lead in proposing an amendment to the Insurance Business Act to make cancellations as convenient as sign-ups by allowing non-face-to-face cancellations.

Currently, cancellation via communication means such as phone or computer is only possible if the consumer has given prior consent before concluding the insurance contract. If consent is not given, the consumer must visit the insurance company, insurance agency, or meet with an insurance planner in person to cancel the contract.

Socially vulnerable groups such as the elderly or disabled, who have difficulty moving, face challenges in canceling insurance, and there have been criticisms that this does not align with the recent trend of non-face-to-face interactions across society due to COVID-19.

This amendment allows consumers to request cancellation of insurance contracts via communication means, even after the contract is concluded, provided that identity verification and confirmation of the contract holder are conducted, enabling non-face-to-face insurance contract cancellations.

Representative Kim said, "We expect to actively respond to changes in consumer demand that are negative toward face-to-face contact after COVID-19 and to alleviate the inconveniences experienced by socially vulnerable groups during the insurance cancellation process."

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