Financial Supervisory Service Launches Online Substitute Driver Insurance 10% Cheaper... "Reducing Insurance Premium Burden"

Personal Insurance Subscription System for Substitute Driving Also Opened... "Resolving the Practice of Duplicate Insurance Premium Payments"

[Asia Economy Reporter Wondara] An online insurance policy for designated drivers, which is about 10% cheaper, will be launched. Through the designated driver personal insurance subscription system, the practice of overlapping insurance premium payments will be improved, reducing the insurance premium burden on designated drivers.

The Financial Supervisory Service (FSS) announced on the 28th that it will launch an online-only personal insurance policy (annual average around 960,000 KRW) that is about 10% cheaper than the current group insurance (annual average around 1,100,000 KRW).

Existing designated driver insurance was subscribed through offline channels, resulting in a high proportion of business expenses (such as recruitment commissions). The FSS explained that the personal insurance from Insurance Company A, launching on the 29th, will be reduced by 15% from 1,130,000 KRW to 960,000 KRW, and Insurance Company B’s personal insurance will be 12% cheaper, from the current 1,140,000 KRW to 1,000,000 KRW.

The FSS also decided to introduce a premium discount and surcharge system for designated driver personal insurance. Accordingly, designated drivers who subscribe to personal insurance this year will be able to receive premium discounts based on a 10-level discount and surcharge rating system if they have no accidents.

The designated driver personal insurance subscription inquiry system, which will start service on the 29th, allows designated driver companies to check in real-time whether designated drivers have personal insurance, thereby resolving the issue of overlapping premium payments.

The FSS will also address issues where some companies charge group insurance recruitment commissions or collect premiums higher than the actual insurance premium. It has been confirmed that some designated driver companies currently force designated drivers to subscribe to their group insurance and do not assign calls to those who refuse.

An FSS official said, "Through this system reform, the insurance premium burden on designated drivers, who are special-type workers, can be significantly alleviated, and public safety is expected to be enhanced. We expect that improving unfair trade practices in the designated driver industry will create a safer and higher-quality designated driver service environment."

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