No Insurance for Drunk Driving and Hit-and-Run... Death Accident Liability Fee Raised from 10 Million to 150 Million Won

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From now on, if a driver causes an accident due to drunk driving, driving without a license, or hit-and-run, the driver will have to pay the entire insurance amount as a deductible without effectively receiving any insurance benefits.

On the 24th, the Ministry of Land, Infrastructure and Transport announced that the amendment to the "Automobile Damage Compensation Guarantee Act (Auto Damage Act)" requiring drivers involved in accidents caused by drugs, alcohol, unlicensed driving, or hit-and-run to bear the full amount of insurance paid to the victim within the compulsory insurance limit as a deductible will be enforced starting July 28.

The deductible system is designed to raise awareness and prevent accidents by requiring the person who caused the accident to bear part of the insurance cost for serious violations of the law. Until now, within the compulsory insurance limit, a maximum deductible of 10 million KRW for bodily injury per accident and 5 million KRW for property damage has been imposed.

This amendment abolishes the deductible limit. Accordingly, from July 28, those who subscribe to automobile insurance will be responsible for the full compulsory insurance compensation limit: 150 million KRW per person for bodily injury (death), 30 million KRW (injury), and up to 20 million KRW per accident for property damage.

For example, in a drunk driving accident resulting in one death, with bodily injury insurance claims of 300 million KRW and property damage insurance claims of 100 million KRW, the previous deductible was 110 million KRW for bodily injury (10 million KRW compulsory insurance, 100 million KRW voluntary insurance) and 55 million KRW for property damage (5 million KRW compulsory insurance, 50 million KRW voluntary insurance).

However, from July 28 onward, insured persons will bear deductibles of 25 million KRW for bodily injury (15 million KRW compulsory insurance, 10 million KRW voluntary insurance) and 70 million KRW for property damage (20 million KRW compulsory insurance, 50 million KRW voluntary insurance).

Additionally, previously, a deductible of 10 million KRW per accident was imposed regardless of the number of deaths or injuries in bodily injury cases, but the amendment strengthens this by imposing deductibles per deceased or injured person.

However, insurance payments to victims will continue to be handled collectively by insurance companies as before, and the insurance company will seek reimbursement from the driver (insured) for the amount corresponding to the deductible.

Cases of Changes in Accident Deductibles for Fatal Accidents Caused by Drunk Driving

Park Ji-hong, Director of Automobile Policy at the Ministry of Land, Infrastructure and Transport, stated, "Driving under the influence of drugs, alcohol, without a license, or hit-and-run involves highly intentional serious negligence, and since the scale of damage in accidents is large, it is important to strengthen the driver's economic responsibility to raise awareness." He added, "We expect this measure to have an overall effect in reducing traffic accidents."

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