Seoul City to Fully Cover Delivery Riders' Injury Insurance Premiums... Coverage Includes Death, Injury, and Aftereffects

Delivery workers aged 16 and over in Seoul to receive broad coverage for accidents during delivery work
Public recruitment of implementing companies for 40 days from the 19th, total budget of 2.5 billion KRW

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 19th that it will fully support the premiums for private group accident insurance to secure a social safety net and protect the health rights of delivery workers. Delivery workers aged 16 and over can receive coverage in case of death, injury, or disability occurring during delivery work within the Seoul area.

The newly introduced Platform Delivery Rider Seoul-type Safety Accident Insurance is structured so that Seoul City, as the policyholder, pays the full insurance premium for the insured delivery workers, and if an accident occurs, the private insurance company contracted by the city pays the insurance benefits to the insured delivery workers. A private insurance company will be selected in September to finalize the coverage scope, and the insurance will be applied starting in October.

Earlier, Seoul City conducted a survey of 1,016 delivery workers from local delivery agencies, revealing that 75.2% of delivery workers had experienced traffic accidents while working. However, only 36.8% (374 people) were enrolled in comprehensive insurance that covers treatment costs, indicating that many do not receive adequate coverage even when accidents occur.

Although delivery riders can directly subscribe to private accident insurance, due to the high accident and loss rates characteristic of two-wheeled vehicles, it is difficult to enroll in such products, and even if enrollment is possible, the high premium costs result in low actual subscription rates. The survey also showed that 7 out of 10 delivery workers (71.6%) cited expensive premiums as the reason for not subscribing to insurance.

Additionally, since July, delivery workers have been able to enroll in industrial accident insurance, but only 42.9% have done so. The main reasons for non-enrollment were 'lack of knowledge about industrial accident insurance' (33.8%), 'burden of industrial accident insurance premiums' (24.5%), 'reluctance of delivery agencies to enroll workers' (17.9%), and 'failure to meet exclusivity requirements' (7.4%).

Due to the low subscription rate to comprehensive insurance among delivery riders, many have not received coverage for treatment costs even after traffic accidents. According to a survey of delivery riders who experienced accidents, 51.1% had their own treatment costs covered by insurance, 21.2% paid out of pocket, 16.9% did not receive treatment, and 10.7% were covered by industrial accident insurance. For repair costs of their own motorcycles, 50.4% were covered by insurance, 29.7% paid in cash, and 19.9% did not repair their vehicles. Compensation for the other party was covered by insurance in 80.3% of cases, while 19.7% paid directly. This is interpreted as being because liability insurance covers damages to the other party even if only liability insurance is subscribed.

The Platform Delivery Rider Seoul-type Safety Accident Insurance targets two-wheeled delivery workers aged 16 and over. Without pre-specifying age, gender, or other factors, insurance benefits will be paid if an accident occurs during delivery work within Seoul, thereby broadening the scope of beneficiaries. The main coverage includes death, disability, fracture diagnosis, and treatment costs resulting from accidents during delivery work. The exact coverage details and scope will be finalized in October after selecting the private insurer. Insurance claims can be made by the insured (victim) or legal heirs by submitting the claim form and required documents specified by the insurance institution when the claim event occurs.

Meanwhile, Seoul City is publicly recruiting accident insurance providers starting today. Private non-life insurance companies are eligible to apply, with a total annual budget of 2.5 billion KRW. The announcement period is 40 days from the date of the announcement, and detailed information can be found on the Seoul City website.

Han Young-hee, Seoul City’s Director of Labor, Fairness, and Coexistence Policy, said, “Delivery workers face immediate difficulties such as financial hardship and treatment costs when accidents occur. The delivery rider accident insurance introduced by Seoul City is an unprecedented product that allows any delivery worker, who previously had difficulty enrolling in industrial accident insurance for various reasons, to become an insurance beneficiary. We expect it to help secure a social safety net for delivery workers.”

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