Baekho, a two-year-old Maltese dog, suffered a major car accident in May of last year. Baekho, who was taken to the emergency room of the veterinary hospital, received a restoration surgery on the ruptured bladder the next day. After one week of hospitalization, pelvic and femoral head fracture surgery was followed. Six days later, he underwent hip bone dislocation, and was hospitalized for another five days. Fortunately, Baekho recovered his health, but he paid 7.36 million won for 20 days of treatment. Baekho’s guardian greatly benefited from the companion animal insurance he had held three months ago. The insurance premium paid right before the accident was about 120,000 won, and 63% of the hospital expenses, or 4.65 million won, was returned.
“It relieves worries about animal hospital expenses”
As the age of 15 million pets opens, interest in’pet insurance’ is also increasing. Medical expenses are the most realistic anxiety encountered while raising pets. The veterinary hospital medical expenses are not standardized, so the price is what you call. According to the Korea Consumer Agency, consumers spent an average of 83,000 won for a single treatment at veterinary hospitals last year, and 80.7% said, “I feel a burden on the cost”.
An official at Samsung Fire & Marine Insurance explained, “With the development of veterinary medicine, treatment is increasing even for diseases that have not been treated or not. If you use insurance, you can reduce the burden of medical expenses.”
Companion animal insurance is basically similar to human loss medical insurance. It is a’real medical expense compensation type’ product that pays part of the veterinary hospital expenses actually spent. Here, you can attach special contracts for various situations that arise when raising a pet. A typical example is a special agreement on liability in case a puppy bites another person or animal.
Looking at the general product structure, depending on the insurance premium, 50% or 70% of medical expenses are returned, and there is a self-pay of around 10,000 won per day. Nutritional supplements, vaccines, and health check-ups are not eligible for insurance payments. Depending on the type of treatment, the insurance industry explains that the’experienced coverage rate’ of surgery and hospitalization costs is a little less than 70%, and outpatient treatment costs slightly exceed 50%.
“Compare and eat multiple insurance companies”
The domestic companion animal insurance market is still in its infancy. Meritz Fire & Marine, which has been aggressive in business since 2018, has advanced with 80% market share, while Samsung Fire & Marine, Hyundai Marine & Marine Insurance, and DB Insurance are competing. About 30,000 dogs and 3,000 cats have joined Meritz Fire Insurance.
As each insurance company has different conditions, it is good to compare several products. Once you sign up for Meritz Fire’s’Pet Permint’, you can maintain insurance until your pet turns 20. For Toy Poodle, the breed of dogs that are most subscribed to, the monthly insurance premium for the age of 0 is 33,400 won. It is a condition of guaranteeing outpatient medical expenses (up to 5 million won per year), inpatient medical expenses (5 million won), and liability for compensation (10 million won).
Samsung Fire & Marine’s’Anipet’ can combine 6 plans and 3 special deals. If you choose a comprehensive plan, you will be paid hospitalization, surgery, outpatient expenses, liability for compensation, and even death compensation. Carrot Insurance has released’Smart On Pet Walking Insurance’, a unique product in case of accidents while walking. It guarantees liability for compensation, cost of search for missing persons, and death compensation at 44 won per walk. There is still no insurance for animals other than dogs and cats.
Carefully check the guarantee conditions and the period of indemnification.
At the Internet Dog and Aemyo Café, mixed evaluations are made over the pet insurance’s’cost-performance ratio (satisfaction against price)’. This is because insurance premiums vary widely depending on the breed and age. In the case of dogs, when they are young, they range between 10,000 and 30,000 won per month, but sometimes over 100,000 won per month when they get older. There are insurance companies that basically cover patella, dermatitis, and oral disease, which small dogs often suffer from, but some require a special contract.
An official from Meritz Fire & Marine Insurance advised, “Pet insurance has an indemnification period like people’s insurance,” and advised that “depending on the disease, make sure to check the clause that guarantees only a certain period after signing up.”
If you are raising a dog, you should also take care of the’Compensation Liability Insurance for Allied Dogs Owners’, which are required to join from next month. If you do not sign up, you will be fined up to 3 million won for violation of the Animal Protection Act. Enrollment targets are Dosa Dogs, American Pit Bull Terriers, American Staffordshire Terriers, Staffordshire Bull Terriers, Rottweilers, and their hybrids.
Reporter Lim Hyun-woo [email protected]