PLANS TO OVERHAUL CAR INSURANCE SYSTEM

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Last year a whopping 2.9 trillion won was paid in insurance payments to those who sustained minor injuries in traffic accidents. The amount has risen by one trillion won over the past five years because of unconscientious citizens who exaggerate their injuries to receive more money. To stop this malicious practice, the government has unveiled a plan to overhaul the car insurance system.

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​In February 2020, a Covid-19 superspreader, identified as patient number 31, caused a ruckus in Daegu. At the time, she was hospitalized for ten days after getting into a car accident. But, it turned out, she roamed about freely during her stay, virtually only returning to the hospital at night to sleep. She ended up infecting many others with Covid-19.

[Soundbite] Jeong Eun-kyeong(KDCA Director (Feb. 2020)) : "She visited a medical facility, a church and a hotel during her hospitalization period. We are investigating places she has visited and people she came into contact with."

The revised car insurance bill targets patients who exaggerate their injuries to receive compensation from insurance companies. Those who are hospitalized for more than four weeks will be required to present medical records. This is necessary to stop the malicious practice of claiming compensation by receiving medical treatment for a long time without presenting any certifying documents. Those who sustain injuries at their own fault will be only compensated by their own coverage instead of claiming damages from the other party. This is to deter over-compesations that was previously covered by the other party's insurance company regardless of the seriousness of the injury. Additional measures will be introduced next year to prevent oriental medicine clinics from claiming excessive compensations for treating traffic accident patients as well. The use of one-person hospital rooms will be restricted partially. The revised law is scheduled to go into effect in January 2023. It's expected to cut annual insurance payments by 20,000-30,000 won per person.

[Soundbite] Lee Dong-yeop(Financial Services Commission) : "People who sustain minor injuries will not be required to pay extra medical bills or denied health care as long as their treatment cost is reasonable."

The government will also overhaul regulations to allow accident victims that come into contact with flying or falling objects on highways to receive proper compensation regardless of who the perpetrator is.