Coupang Eats Service Introduces 'Minute-Based' Time-Dependent Paid Transportation Insurance

Introduction of Per-Minute Billing Method with Minimum Level Insurance Premium

[Asia Economy Reporter Kim Cheol-hyun] Coupang Eats Service announced on the 6th that, after discussing the introduction of paid transportation insurance with commercial insurance companies for over a year, it will introduce an hourly paid transportation insurance with the industry's lowest insurance premiums starting this month. Hourly paid transportation insurance is a method where delivery partners pay insurance premiums only for the actual time spent performing deliveries. In case of an accident, the product provides compensation for bodily injury to affected persons (liability insurance) and property damage.

Currently, the hourly insurance for motorcycles and cars introduced in the industry charges premiums for the first hour regardless of delivery time or calculates premiums in 10-minute units, resulting in delivery partners having to pay more insurance premiums than the actual delivery time, which has been a persistent issue.

To address this problem, Coupang Eats Service analyzed the reasons why delivery partners avoid subscribing to hourly insurance and developed a system that transmits delivery partners' delivery times to insurance companies in real time. The hourly paid transportation insurance introduced by Coupang Eats Service measures delivery time in minutes and directly transmits this to the insurance company, thereby calculating insurance premiums based on the actual delivery time.

Additionally, by negotiating with insurance companies to set the hourly insurance premium at the industry's lowest level, Coupang Eats Service explained that delivery partners can subscribe to paid transportation insurance at more affordable premiums. Currently, delivery partners can only subscribe to paid transportation insurance provided by the insurance company of the mandatory insurance they have subscribed to, but the hourly paid transportation insurance introduced by Coupang Eats Service allows anyone to subscribe regardless of the insurance company of the mandatory insurance, minimizing inconvenience for delivery partners.

Considering the feature of providing actual delivery work time to insurance companies in real time, Coupang Eats Service plans to gradually expand the application target starting from the 11th to ensure stable system operation. A Coupang Eats Service official said, "Delivery partners who deliver for short periods as a side job can now subscribe to paid transportation insurance based on actual delivery time," adding, "With the addition of paid transportation insurance to the safety policies for delivery partners, including workers' compensation insurance, which have been implemented so far, we expect a significant strengthening of delivery partners' safety policies."

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