Chungnam Checks Whether Disaster-Vulnerable Facilities Have Mandatory Insurance Enrollment

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province announced on the 20th that from the 22nd to the 27th, it will inspect whether disaster-vulnerable facilities in 20 industries located in 15 cities and counties including Cheonan, Asan, Gongju, Taean, and Boryeong have subscribed to the mandatory disaster liability insurance (hereinafter referred to as disaster liability insurance).

Disaster liability insurance is a mandatory insurance that provides compensation when bodily injury or property damage occurs to others due to fire, explosion, collapse, etc.

The province plans to identify the status of facilities not subscribed to disaster liability insurance through special inspections, confirm the reasons for non-subscription, and simultaneously encourage subscription to the mandatory insurance through administrative guidance.

The facilities subject to subscription include underground shopping malls, gas stations, funeral homes, passenger car terminals, restaurants, lodging businesses, logistics warehouses, apartments, museums, libraries, international conference rooms, racetracks, cycle racing tracks, science centers, art galleries, motorboat racing tracks, off-track betting shops, exhibition facilities, off-site sales offices, and rural homestays.

Since the introduction of disaster liability insurance, the province has encouraged subscription among local industries. As a result, currently, out of a total of 14,916 businesses, 14,723 (98.7%) have subscribed to the insurance, and 193 facilities are identified as not subscribed.

The subscription timing varies by industry. For example, nine facilities such as lodging businesses, restaurants, and rural homestays must subscribe within 30 days after registration and reporting are completed, while 11 facilities such as cycle racing tracks, libraries, gas stations, and apartments (15 floors or less) must subscribe before starting use according to the purpose of use.

Insurance premiums vary depending on the area, but generally, it is 20,000 KRW annually based on 100㎡.

The insurance coverage provides up to 150 million KRW per person for bodily injury (compensation without limitation on the number of people per accident) and up to 1 billion KRW per accident for property damage in case of fire, explosion, collapse, etc. It also covers damages caused by no-fault accidents (unknown causes, arson, etc.) where the subscriber is not at fault.

However, damages caused by natural disasters such as earthquakes, floods, and tsunamis are not compensated.

If a facility does not subscribe to disaster liability insurance, a fine ranging from a minimum of 100,000 KRW to a maximum of 3 million KRW will be imposed according to the Enforcement Decree of the Framework Act on Disaster and Safety Management.

Oh Ji-hyun, head of the Social Disaster Division of the province, said, “The number of users of lodging facilities, restaurants, and terminals is expected to increase during the summer vacation season,” and added, “The province will focus on achieving a 100% subscription rate for disaster liability insurance to ensure safety and property rights protection in case of accidents such as fire, explosion, and collapse.”

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