100 Burned Mercedes-Benz Cars... Insurance Industry Faces 10 Billion Won Loss Due to Fire in Cheonan Buldang-dong

470 Vehicles Damaged in Fire at Cheonan Buldang-dong Underground Parking Lot
100 Mercedes-Benz Cars Affected... Massive Losses Inevitable for Insurers

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Insurers are facing concerns over losses amounting to billions of won due to a fire caused by an explosion of a mobile car wash vehicle in the underground parking lot of an apartment complex in Buldang-dong, Cheonan.

According to the property and casualty insurance industry on the 18th, about 470 vehicles insured under automobile insurance were reported to the four major insurers (Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance) as of the 16th following the fire.

Samsung Fire & Marine Insurance, which holds the largest market share in automobile insurance, received claims for about 200 vehicles, while KB, Hyundai, and DB each received reports for 70 to 80 vehicles. It was confirmed that 34 vehicles were reported as completely burned.

In particular, many high-end imported vehicles are among the reported damages, so the scale of the damage is expected to increase. Forty percent of all damaged vehicles are foreign cars, with approximately 100 Mercedes-Benz vehicles reported.

The mobile car wash vehicle involved in the fire, a Starex model, has a liability limit of 100 million won under its automobile insurance, which is insufficient to cover damages to other vehicles.

An industry official said, "Damaged vehicles can primarily be covered by their own vehicle damage special contract (comprehensive coverage), but vehicles without this coverage will face a heavy burden. Owners without comprehensive coverage will have to pay repair costs themselves and seek compensation from the mobile car wash driver and the affiliated company, but considering the scale of the mobile car wash business, recovery will not be easy."

Damage to facilities such as underground parking lot piping is also estimated at around 2 billion won. The apartment facilities are insured under a product from Lotte Insurance, so it is expected that insurance claims for the damage can be received.

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