Even with Full Age Implementation, 'Insurance Age' Verification Essential... Insurance Changes in the Second Half of the Year

Sign Up for Insurance via Video Call... Gifts Up to 200,000 Won
20% Discount on First Motorcycle Insurance Enrollment

The 'Unified Age Law' will be implemented, and various insurance systems will be restructured. It is necessary to check the 'insurance age' used when subscribing to insurance more carefully. Additionally, it will become possible to subscribe to insurance via video calls, and first-time subscribers to two-wheeler insurance will be eligible for premium discounts.

Starting from July next week, various insurance-related systems will change, requiring users to be cautious. With the implementation of the full age system, it is important to verify details carefully at the time of subscription. Insurance is based on the 'insurance age.' If the contract date is less than six months from the birthday, the full age is applied; if six months or more, full age plus one year is applied. Since an increase in insurance age raises premiums, it is advantageous to subscribe within six months after the birthday. However, due to mandatory regulations, full age may be applied or age may be determined by individual terms and conditions when subscribing to insurance. Therefore, it is essential to check before subscribing.

The insurance subscription system will also change. First, it will become possible to subscribe to insurance through hybrid methods (listening on a smartphone while simultaneously viewing explanatory materials on the screen) and video calls. Currently, insurance can be subscribed to non-face-to-face, but consumers had to understand insurance products by listening only to voice calls with insurance planners. In the future, consumers will be able to listen to explanations via smartphone or similar devices while directly viewing explanatory materials combining text and images.

The price limit for items that can be provided upon insurance subscription has also increased from 30,000 KRW to 200,000 KRW (or 10% of the annual premium). However, these items are limited to those that reduce the risk of accidents for each insurance product. For example, when subscribing to home fire insurance, products that detect gas leaks or fire occurrences are provided.

Discount systems for premiums on two-wheelers such as motorcycles will also be implemented from the second half of the year. Commercial two-wheelers had higher premiums compared to household two-wheelers due to frequent accidents. According to the Financial Supervisory Service, the average premium for household two-wheelers was 220,000 KRW, but the average premium for commercial two-wheelers used for delivery purposes reached as high as 2,240,000 KRW. Because of this, the mandatory subscription rate was relatively low at 51.8% as of last year.

In response, the Financial Supervisory Service has applied a 'protection discount grade' to those subscribing to two-wheeler insurance for the first time, allowing a 20% discount on premiums. This improves the previous system where first-time subscribers were assigned the same grade as those who had multiple accidents, resulting in high premiums. The group discount and surcharge system for corporate two-wheelers will be applied from April 1 next year.

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