[Insurance Tip ③] Driver Fault Increasing to 100%... Fault Ratios You Need to Know

Major Adjustments to the Fault Ratio Recognition Standards by the General Insurance Association

[Asia Economy Reporter Changhwan Lee] # A man in his 40s, Mr. Lee, who was crossing a road within an apartment complex, was involved in an accident after failing to avoid a speeding car. Although Mr. Lee initially thought he was partly at fault and was willing to cover some of the medical expenses, due to this year's amendment to the Road Traffic Act, which adjusted the fault ratio more favorably toward pedestrians, he received 100% compensation for his damages.

# Mr. Kim, a company employee in his 30s, went on an outing with his family over the weekend. While driving, another car suddenly cut in, causing an accident. Mr. Kim naturally assumed that the other party was at fault and that he would receive full compensation for his damages through insurance. However, he was greatly surprised to learn that he had to bear some responsibility because he himself violated traffic laws (speeding).

As the Road Traffic Act continues to be amended to strengthen pedestrian protection, drivers’ responsibilities in the event of an accident are increasing. In a situation where driving requires more caution than ever, it is necessary to have a more accurate understanding of the fault ratio, which indicates the driver’s responsibility in an accident.

According to the Financial Supervisory Service and the General Insurance Association, the fault ratio in automobile insurance refers to the degree of responsibility between the perpetrator and the victim when a car accident occurs. The fault ratio is important because it affects the insurance payout and the premium for policy renewal. If your fault ratio increases, the amount you receive in compensation decreases, and your insurance premium may rise when you renew your policy.

When a car accident occurs, the insurance company estimates the basic fault ratio (0~100%) between the perpetrator and the victim by considering the accident location, vehicle behavior, and other circumstances. Then, they adjust the final fault ratio by adding or subtracting factors such as traffic law violations.

Among these, if the driver’s mistake is clear, the fault ratio is further increased, so drivers must be especially careful.

Source: Financial Supervisory Service

First, the Road Traffic Act prohibits driving under the influence, driving without a license, fatigue driving, and speeding. If a driver causes an accident by violating these traffic laws, an additional 20 percentage points (p) are added to the basic fault ratio. This increase in fault ratio not only reduces the insurance payout but also results in a significant surcharge on insurance premiums due to the violation record.

Additionally, to protect vulnerable road users such as children, the elderly, and people with disabilities, certain road sections are designated as protection zones by law. Drivers must pay special attention to comply with traffic laws in these zones, such as driving at speeds below 30 km/h. If an accident involving children or other vulnerable persons occurs within a protection zone, the driver’s fault ratio is increased by 15 percentage points.

Drivers must focus solely on driving. Using a mobile phone, watching videos, or using messenger apps while driving is prohibited. If a driver violates this and causes an accident, the fault ratio is increased by 10 percentage points.

Furthermore, inattentive behaviors that drivers may easily overlook, such as distracted driving or changing lanes without signaling, also increase the fault ratio.

Even accidents occurring at the same location can have vastly different causes, so the fault ratio varies accordingly. Disputes may arise depending on the situation, and the number of automobile accident fault disputes is increasing every year.

According to the General Insurance Association, the number of requests for review submitted to the Automobile Accident Fault Ratio Dispute Review Committee last year was 113,804, a 9.3% increase compared to 2020. Compared to four years ago in 2017, the increase rate reached 85.3%.

To reduce disputes, it is necessary to secure accurate and objective evidence of the situation at the time of the accident. Taking photos and videos of the scene and vehicle damage immediately after the accident can help prevent potential fault ratio disputes in the future.

To prevent secondary accidents, it is also important to quickly complete evidence collection and move to a safe location such as the roadside.

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