In the event of a car accident, the car insurance system is changed so that the negligence of the person is treated as his/her own insurance. It will prevent over-treatment, prevent insurance premiums from leaking, and prevent premiums from rising for subscribers. In addition, a small short-term insurance company that only guarantees up to 50 million won in less than one year of coverage will be launched as early as June.
The Financial Services Commission announced on the 1st the policy direction for trust and innovation in the insurance industry. Currently, the standard terms and conditions of automobile insurance require that the other party’s treatment costs be paid in full, regardless of how much the person is at fault. For example, if the perpetrator with a 90% negligence rate is 6 million won and the victim’s treatment costs 500,000 won, the victim must ask the offender 6 million won even though his fault is only 10%.
An official from the Financial Services Commission said, “Because you can receive treatment with someone else’s money, you have been constantly concerned about the possibility of over-treatment.”
The Financial Services Commission estimates that insurance payments (treatment costs) for automobile accidents due to excessive medical care are estimated at 540 billion won per year. It is about 20% of the total treatment cost (3 trillion won). According to the reorganization bill being promoted by the Financial Services Commission, the perpetrator in the aforementioned accident should pay 5.4 million won (90% negligence rate) out of 6 million won for treatment as self-insurance. An official from the Financial Services Commission said, “We plan to apply only to Gyeongsang with a grade of 12-14 in Shanghai after the second half of the year.” The Financial Services Commission is also pursuing a plan to guarantee only the treatment period stated in the medical certificate for minor patients.
The Financial Services Commission also agreed to allow the establishment of a’mini insurance company’ that handles weather, animals, theft, diseases and injuries with a capital of 2 billion won when the revised insurance business law is enforced in June.
Reporter Park Jong-seo [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution