Electric Scooter Insurance Launched 3 Months Ago... Number of Subscriptions Remains Minimal

Over 4,500 Cases Including DB Insurance
Calls for Mandatory Accident-Level Increase

[Asia Economy Reporter Ki Ha-young] It has been three months since insurance guaranteeing personal damage protection for electric scooter users was introduced, but the number of subscriptions remains low. Although electric scooter accidents are rapidly increasing, the insurance industry views this as a niche market, making it difficult to expect explosive subscription growth immediately.

According to the insurance industry on the 19th, since the launch of electric scooter-related special contracts in November last year, the total number of subscriptions for electric scooter special contracts has been about 870 cases at DB Insurance, about 3,600 cases at Hyundai Marine & Fire Insurance, totaling approximately 4,500 cases as of last month. DB Insurance and Hyundai Marine & Fire Insurance included electric scooter insurance as special contracts under motorcycle driver insurance and automobile driver insurance, respectively. Since the motorcycle insurance market is smaller than the automobile insurance market, there was a difference in subscription numbers. The industry explains that because the electric scooter insurance market itself is a niche market and the product aims to fill coverage gaps related to accidents, it is difficult to expect explosive subscription numbers.

Following the amendment of the Road Traffic Act in December last year, which allows anyone aged 13 or older to ride an electric scooter without a license, insurance companies introduced electric scooter insurance in the form of special contracts. This insurance covers the user's own damage in case of an accident during operation.

In November last year, DB Insurance was the first to launch five new coverages through the "Chamjoeun Motorcycle Driver Insurance" that protect personal injury risks for personal mobility (PM) device drivers such as electric scooters during operation. Hyundai Marine & Fire Insurance also established six specialized coverages in the "New Hi-Car Driver Accident Insurance" to cover injury risks for PM device drivers during operation. KB Insurance also launched an electric scooter coverage product as a special contract under automobile driver insurance starting this month.

The electric scooter market is rapidly growing. According to market research firm Nielsen Korean Click, as of October last year, the number of shared electric scooter users reached 1.15 million. When combined with the number of electric scooter owners, the user base is even larger. As usage increases, accidents are also surging. According to the Korea Consumer Agency, electric scooter accidents numbered 195 in 2017, 229 in 2018, 257 in 2019, and 571 as of November 2020.

Due to growing concerns over electric scooter accidents, regulations on electric scooter users will be strengthened again starting May 13. The amendment to the Road Traffic Act requires users to have a motorized bicycle license or higher if aged 16 or older to operate electric scooters, and safety regulations requiring helmet use have been reinstated, with fines imposed for non-compliance.

Although regulations on scooter users have been tightened due to legal amendments, calls for mandatory electric scooter insurance are also emerging. An insurance industry official said, "Electric scooters have higher utility as a means of transportation than bicycles and pose a higher risk of accidents involving pedestrians," adding, "There is a need to introduce a mandatory insurance system that can adequately protect both pedestrians and scooter riders."

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