Ministry of the Interior and Safety Launches '20,000 KRW Annual' Disaster Hope Insurance in Partnership with Carrot General Insurance Company
Joining Small Restaurants Under 100㎡
[Asia Economy Reporter Lim Cheol-young] From now on, small-scale restaurants under 100㎡ can subscribe to the ‘Disaster Liability Insurance,’ which guarantees compensation for damages to others caused by fire, collapse, explosion, etc., for an annual fee of 20,000 KRW.
On the 31st, the Ministry of the Interior and Safety announced that it will introduce the ‘Disaster Hope Insurance’ starting next month on the 1st to support small-scale restaurants that are relatively vulnerable to disasters. ‘Disaster Hope Insurance’ is a type of disaster liability insurance introduced to assist facilities that have difficulty bearing compensation burdens in the event of a disaster.
The Ministry of the Interior and Safety collaborated with the Korea Insurance Development Institute and private internet non-life insurance companies to launch the ‘Disaster Liability Voluntary Insurance’ product, which can be subscribed to for 20,000 KRW annually to eliminate insurance blind spots. Small-scale restaurants can subscribe through Carrot General Insurance, and it provides coverage equivalent to mandatory disaster liability insurance, including 150 million KRW per person (unlimited per accident) and up to 1 billion KRW for property damage.
Small business owners operating small-scale restaurants are inevitably exposed to fire risks due to the constant use of fire sources, and the introduction of ‘Disaster Hope Insurance’ is expected to significantly reduce their burden of damage compensation.
Meanwhile, as of the end of June 2022, small-scale restaurants accounted for about 85% with 750,000 out of 880,000 restaurants nationwide, and last year, there were a total of 2,456 restaurant fires nationwide, causing approximately 10.1 billion KRW in property damage.
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Minister Lee Sang-min said, “Disaster Hope Insurance is intended not only to protect small-scale restaurants but also all citizens who use them from disaster risks, and it is expected to contribute to minimizing disaster damage throughout society.” He added, “The government will work with local governments to promote the spread of Disaster Hope Insurance.”
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