Namwon-si "Mandatory Subscription to Rural Homestay Disaster Liability Insurance"

[Asia Economy Honam Reporting Headquarters Reporter Park Nosik] Namwon City, Jeonbuk, announced on the 8th that rural lodging facilities must also mandatorily subscribe to disaster liability insurance in accordance with the revision of the Enforcement Decree of the Framework Act on Disaster and Safety Management.

Initially, rural lodging facilities were not subject to mandatory subscription, but following fatal accidents such as the 'Gangneung Pension Gas Accident' and the 'Donghae Pension Explosion Accident,' the Ministry of the Interior and Safety added rural lodging facilities to the list of mandatory subscription facilities as of December 10 last year.

Disaster liability insurance is a compulsory insurance that compensates for bodily injury or property damage to others caused by fire, collapse, explosion, etc. It differs from general fire insurance, which compensates the insured for property damage caused by fire, etc. The insurance premium varies depending on the area of the facility, usually about 20,000 KRW annually for 100㎡, and the compensation limit is up to 150 million KRW per person for bodily injury and up to 1 billion KRW for property damage.

Rural lodging facilities are given a six-month grace period for subscription exemption and must subscribe to the insurance by June 9. Namwon City has been promoting subscription to disaster liability insurance by sending individual notices to about 230 rural lodging businesses currently operating normally in January and distributing promotional materials to towns and townships.

A city official said, “Disaster liability insurance is a mandatory insurance, and if insurance is not subscribed within the subscription period, a fine ranging from a minimum of 100,000 KRW to a maximum of 3 million KRW may be imposed depending on the period of violation of the subscription obligation. We ask rural lodging facilities to make sure to subscribe within the period to avoid any disadvantages due to non-subscription.”

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