"Notify Your Insurance Company When Changing Jobs or Duties to Avoid Losses"

After an Insurance Contract, Notifying the Insurer of Job or Position Changes Is Essential to Prevent Losses

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] # Subscriber A of accident insurance transferred from an internal office department to an on-site work department within the same company due to a personnel reassignment after signing the insurance contract. Later, after suffering an accident during on-site work and claiming insurance benefits, A was notified by the insurer that the insurance contract could be terminated and that the insurance payout would be significantly lower than the coverage amount because the change in job duties was not reported to the insurer before the accident.

On the 23rd, the Financial Supervisory Service (FSS) announced that subscribers of accident insurance or indemnity medical insurance must promptly notify the insurance company if their job duties change within the same workplace to prevent disadvantages.

The FSS explained that disputes have been steadily occurring due to subscribers failing to notify insurers of changes in occupation or job duties after subscribing to accident or indemnity insurance, resulting in contract termination or reduced insurance payouts.

During the insurance period, if there is a change not only in the insured’s occupation but also in job duties, the policyholder or insured must notify the insurance company of such changes. Even if there is no change in occupation or workplace and only the assigned job duties change, it is subject to notification because the risk of accident may vary.

The FSS emphasized that even if the assigned job duties remain the same but the insured takes on additional new duties concurrently, it is subject to notification, so special attention is required.

Source: Financial Supervisory Service

Furthermore, the FSS stated that notification to the insurance company must be made without delay at the time of the job duty change or addition, and any disadvantages arising from delayed notification will be borne by the insurance consumer, so caution is necessary.

If the change in job duties is not reported to the insurance company, the company may terminate the contract or reduce the insurance payout due to risk changes.

Unlike the duty of disclosure which applies only at the time of subscription, the duty of notification applies throughout the insurance period, so failure to comply may result in contract termination at any time. Due to contract termination, the insured may not receive coverage for accidents occurring thereafter or may receive reduced insurance benefits, causing insufficient compensation.

On the other hand, if the duty of notification is fulfilled, the subscriber can maintain the contract by adjusting the premium or under conditions that exclude some coverage. If the risk of accident decreases due to job duty changes, the premium may be lowered, and financial losses such as receiving a surrender refund less than the premiums already paid due to contract termination can be prevented.

This also helps avoid disadvantages such as difficulty in subscribing to new insurance due to aging or having to bear high premiums even if subscribing.

Additionally, the FSS explained that when job duties change, the insured must notify the insurance company directly by mail or phone, not through the insurance agent who sold the insurance product.

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