A demonstrator introduces an autonomous vehicle, which was developed by Hanyang University’s Automotive Control and Electronic Lab, on March 11, 2019. (Yonhap)
SEOUL, Sept. 18 (Korea Bizwire) — South Korean insurance companies will start selling autonomous car-related insurance products from late this month, the financial watchdog said Thursday.
The Financial Supervisory Service announced that the nation’s 12 non-life insurance companies will start selling new insurance products that can cover the risk related to accidents involving commercial self-driving cars from late this month.
This announcement came after a legal foundation was established for the commercialization of Level 3 autonomous vehicles, effective from October, following the Ministry of Land, Infrastructure and Transport’s establishment of safety standards for self-driving cars and the revision of the Act on Compensation for Car Damages.
Level 3 autonomous vehicles are those that can operate without driver input under specific conditions such as highway driving. When the system requests intervention, the driver should take control of the car.
Under the revision of the Act on Compensation for Car Damages that will take effect from October, sales of insurance products for self-driving cars will begin first with policies for commercial self-driving cars.
The insurers will likely cover personal self-driving cars after reviewing market trends next year.
The insurance policy for commercial self-driving cars will have a specific clause that requests the indemnity to be paid by carmakers when accidents occur due to defects in the self-driving mode.
The insurance rate for commercial self-driving cars is set at a level 3.7 percent higher than that for general commercial vehicles given that new risks such as system defects and hacking must also be taken into consideration.
Kevin Lee (kevinlee@koreabizwire.com)
