'Fishing Vessel Industrial Accident Insurance' Rate Frozen Next Year..."Expansion of Coverage and Product Diversification"

Ministry of Oceans and Fisheries "Rate Freeze to Ease Burden on Fishermen"

[Sejong=Asia Economy Reporter Moon Chaeseok] Next year, the premium rates for fishermen and fishing vessel accident compensation insurance will remain frozen at this year's level.

The Ministry of Oceans and Fisheries announced on the 23rd that it held the Fisheries Accident Insurance Deliberation Committee meeting and decided to freeze the rates, improve the system, and approve the business plan for fishermen's safety insurance for the next year.

First, it was decided to maintain the insurance rates for fishermen and fishing vessels. Although there were factors for an increase such as a rise in accidents among insured persons, the Ministry explained that this decision was made to ease the burden on fishermen struggling due to COVID-19. However, some adjustments will be made to premiums by tonnage (t) class and discount/surcharge grades by industry.

The coverage of fishermen and fishing vessel insurance and fishermen's safety insurance will be expanded. In cooperation with specialized burn hospitals nationwide, certified burn treatment medical institutions for fishermen insurance will be secured. The payment rate of the fishing vessel and fishermen insurance's suspension refund, given when fishing operations are halted due to vessel repairs, has also been raised from 55% to 60%.

If a fire on one fishing vessel spreads to other vessels, the compensation (liability) limit that must be borne will be covered by the fishing vessel insurance. To encourage prompt oil pollution prevention measures by vessel owners in case of fishing vessel accidents, the marine pollution prevention costs borne by the owners will be included in the main contract of the fishing vessel insurance. Costs incurred for damage prevention measures such as vessel salvage and marine rescue will be compensated even if they exceed the main contract coverage limit.

The structure of fishermen's safety insurance products will be simplified while expanding coverage. Through the deliberation committee, the business plan for next year’s safety insurance for fishermen engaged in barehanded fishing, diving fishing, and other activities was finalized. Among eight insurance products, two with low subscription rates will be abolished, three will have premium reductions, and two will have expanded compensation.

The terms and conditions will be revised to allow insurance payments if death occurs within 30 days after the policy expires due to an accident during the coverage period. Survivor and disability benefits, which were previously payable only as lump sums, will also be available in the form of annuities. Alongside the existing one-year term products, new short-term products (1?150 days) and long-term products (3-year term) will be launched to diversify the offerings.

Kim Jaecheol, Director of Fisheries Policy at the Ministry of Oceans and Fisheries, said, "Through these improvements to fishermen and fishing vessel insurance and fishermen's safety insurance systems, we hope to minimize the management burden on fishermen struggling due to COVID-19 and help eliminate blind spots in disaster compensation, even if only a little. We will continue to promote system improvements to protect fishermen, enhance their rights, and improve their convenience."

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