No Insurance Coverage for Unlicensed or Drunk Driving Accidents

12 Major Traffic Violations Including Center Line Infringement and Signal Violations... Repair Cost Claims Also Restricted
Improvement of Auto Insurance System → Traffic Accident Reduction by Strengthening Accident Responsibility

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] In September last year, near the road by Eulwangri Beach in Jung-gu, Incheon, Mr. A, driving under the influence, crossed the center line and collided with Mr. B, who was delivering chicken on a motorcycle. Mr. B, who was hit by the car, died, and insurance compensation of 270 million KRW was paid, but Mr. A’s accident burden was only 3 million KRW.

From now on, in cases of drunk driving, unlicensed driving, or hit-and-run accidents, the entire insurance payout made to victims can be claimed back from the perpetrator, strengthening accident liability for serious traffic violations.

The Ministry of Land, Infrastructure and Transport announced on the 28th that as part of follow-up measures to the “2021 Traffic Accident Fatality Reduction Plan” jointly announced with related ministries on the 25th, it will discover and promote improvements to the automobile insurance system to induce a reduction in traffic accidents.

First, it will promote the ability to claim the full amount of insurance payouts for drunk driving, unlicensed driving, and hit-and-run accidents.

The so-called “accident burden” system, which allows insurance companies to claim back part of the insurance payouts made to victims from the perpetrators in cases of drunk driving, unlicensed driving, and hit-and-run accidents, will be significantly strengthened.

The “accident burden” is a system introduced and operated to raise awareness of serious legal violations and prevent accidents. Last year, the upper limit for accident burden on drunk driving was raised (bodily injury 3 million KRW → 10 million KRW, property damage 1 million KRW → 5 million KRW).

This measure raises the maximum amount insurance companies can claim back in cases of drunk driving, unlicensed driving, and hit-and-run accidents to the “full amount of insurance paid,” greatly increasing the economic responsibility for serious violations such as drunk driving, which the Ministry expects will help deter traffic accidents in advance.

Additionally, “drug and substance-impaired driving” will be added to the current accident burden application targets.

In September last year in Haeundae, Busan, a vehicle driven under the influence of drugs caused hallucinations, hit two passenger cars, and fled at high speed, causing a 7-car chain collision. Approximately 810 million KRW in insurance payouts were made for compensation for nine seriously and moderately injured people, including a 12-week spinal fracture, but the perpetrator’s accident burden was zero.

Accordingly, drug and substance-impaired driving will be added to the accident burden application targets to raise awareness of serious violations.

Measures will be promoted to restrict the perpetrator’s claims for repair costs in cases of the 12 major serious negligence accidents.

Under the “Special Act on Traffic Accident Handling,” if an accident is caused by one of the 12 major serious negligence cases, the perpetrator will be prohibited from claiming vehicle repair costs (property damage) from the other party.

The 12 major serious negligence cases are: ① signal violation ② center line violation ③ speeding ④ illegal overtaking ⑤ railroad crossing violation ⑥ pedestrian crossing violation ⑦ unlicensed driving ⑧ drunk driving ⑨ sidewalk intrusion ⑩ door opening accident ⑪ school zone violation ⑫ cargo securing violation.

Until now, in car-to-car accidents, property damage was shared according to the degree of fault, but there have been controversies over unfair repair cost burdens, such as victims having to compensate for the other party’s vehicle repair costs even when the other party was clearly at fault due to drunk driving, and sometimes the victim having to pay more when the perpetrator’s vehicle is a luxury car.

Therefore, by strengthening the responsibility of violators of the 12 major serious negligence cases, the system will be improved to allow fair sharing of vehicle repair costs, and the Ministry expects this will also raise awareness of traffic law compliance.

Kim Jeong-hee, Director of Automobile Policy at the Ministry of Land, Infrastructure and Transport, said, “This automobile insurance system improvement was prepared to increase drivers’ responsibility for serious negligence such as drunk driving and to prevent traffic accidents,” adding, “Under the basic premise of the automobile insurance system to provide prompt and strong protection for victims, we plan to continuously discover and promote improvement measures that can contribute to reducing traffic accidents.”

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