Seoul City to Fully Support Delivery Riders' Injury Insurance... Full Implementation Starting October (Comprehensive)

Only 37% of Delivery Workers in Local Delivery Agencies Enrolled in Comprehensive Insurance... Reluctant Due to Insurance Premium Burden
Private Non-Life Insurance Companies Open Recruitment, Total Budget of 2.5 Billion KRW

[Asia Economy Reporter Lim Cheol-young] Starting in October, delivery workers who suffer death, injury, or aftereffects while performing delivery tasks within the Seoul area will be eligible to receive insurance benefits.

On the 20th, Seoul City announced the introduction of the Platform Delivery Rider Seoul-type Safety Accident Insurance, where Seoul City, as the policyholder, pays the full insurance premium for the insured delivery workers. In the event of an accident, the private insurance company contracted by the city will pay insurance benefits to the insured delivery workers. A private insurer will be selected in September to finalize the coverage scope, with the insurance set to be applied from October. Seoul City is currently recruiting private non-life insurance companies, with a total annual budget of 2.5 billion KRW.

The support targets are delivery workers aged 16 and older who operate two-wheeled vehicles. Without pre-specifying age or gender, insurance benefits will be paid if an accident occurs during delivery work within Seoul, thereby broadening the scope of beneficiaries. Major coverage includes death, aftereffects, 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 upon occurrence of the claim event.

A survey conducted by Seoul City targeting 1,016 delivery workers from local delivery agencies found 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 after accidents. Although delivery riders can individually purchase private accident insurance, due to the high accident and loss rates associated with two-wheeled vehicles, it is difficult to obtain such insurance products, and even when available, the high premium costs result in low actual enrollment rates. The survey also revealed that 7 out of 10 delivery workers (71.6%) cited expensive premiums as the reason for not purchasing insurance.

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%), premium burden (24.5%), reluctance of delivery agencies to enroll workers (17.9%), and failure to meet exclusivity requirements (7.4%). Due to the low enrollment rate in comprehensive insurance among delivery riders, many were unable to receive coverage for treatment costs even after traffic accidents occurred.

According to a survey of delivery riders who experienced accidents, 51.1% reported that their personal treatment costs were 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 personal motorcycle repair costs, 50.4% were covered by insurance, 29.7% paid in cash, and 19.9% did not repair their vehicles. Regarding compensation to the other party, 80.3% was covered by insurance, while 19.7% was paid directly by the rider. This is interpreted as the liability insurance alone covering damages to the other party.

Han Young-hee, Seoul City's Director of Labor, Fairness, and Coexistence Policy, stated, "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."

[Image source=Yonhap News]

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