2% Discount on Auto Insurance Premiums for 5-Day Rotation Participants... Special Rider Launches at End of May

Discount Restrictions and Surcharges for Violations
Reimbursement After Compliance Verification at Policy Maturity
Retroactive Benefits from April Only for Those Enrolled in May

Non-life insurance companies will launch a special rider offering insurance premium discounts to vehicles participating in the 5-day rotation system at the end of this month.

Members of the Democratic Party of Korea's Special Committee on Economic Response to the Middle East Situation posed for a commemorative photo after announcing measures to discount auto insurance premiums related to the vehicle 5-day rotation system at an event held with domestic non-life insurance companies on the 27th of last month at the National Assembly Members' Office Building. Photo by Yonhap News Agency scoop@yna.co.kr (End)

The General Insurance Association of Korea announced on May 8 the main details of the special rider for the vehicle 5-day rotation system.

The core of the rider is that if a vehicle is not operated on its designated day according to the last digit of its license plate, the annual auto insurance premium will be discounted by 2%.

This was introduced to address crude oil supply crises and encourage energy saving. The discount reflects the reduced risk of accidents due to decreased vehicle operation.

Eligibility is limited to vehicles with a value of less than 50 million won, excluding eco-friendly cars, among those that submit an application for participation in the 5-day rotation system starting from May 11. Hybrid vehicles are included, but motorcycles are excluded.

Applicants must first submit a participation application form and then complete the actual enrollment process with their current insurance company after the product is launched in order to receive the discount.

Compliance with the 5-day rotation system will be verified at the end of the policy period using methods such as the insurer's safe driving application and connected car data.

If the policyholder fails to fulfill the obligation to provide driving information or forges or alters data, the rider may become invalid.

If it is confirmed that the vehicle was operated on a designated non-driving day, the rider may be cancelled, and re-enrollment may also be restricted.

If violations are detected on two or more occasions, the discount will only apply from the effective date of the rider up to the first violation.

If an accident occurs while driving on a designated non-driving day, the insurance discount will not be applied.

If a policyholder who has already violated the non-driving day once causes an accident while driving again on a non-driving day, a special surcharge may be imposed on the discounted amount during the rider enrollment period.

However, in order to protect accident victims, the insurance payout will be made in full.

If the insurance company changes or the policy expires during the participation period in the 5-day rotation system, settlement must be made separately with both the previous and new insurers according to the respective coverage periods.

If unavoidable circumstances make it impossible to continue complying with the 5-day rotation system, policyholders may apply to cancel the rider.

The rider will be automatically terminated on a separately determined end date, taking into account situations such as the government lifting the oil resource security crisis.

The insurance premium discount will be provided retroactively after confirming actual compliance at maturity, using a reimbursement method. If compliance is confirmed via app or other means, reimbursement will be made within 10 days after maturity.

Only those who enroll within this month will be eligible for retroactive benefits from April 1; those who enroll in subsequent months will not receive retroactive benefits.

If an accident occurs on a non-driving day between April 1 and the date of application submission, the discount will be applied from the time of rider enrollment.

If an accident occurs between the application submission date and the actual rider enrollment date, enrollment in the rider will not be permitted.

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