This photo taken on July 3, 2017, shows state power provider KEPCO’s charging station for electric vehicles in Seoul. (Yonhap)
SEOUL, July 29 (Korea Bizwire) — South Korea’s financial regulator said Wednesday that all of the nation’s insurance companies will start selling riders from early next month to offset the entire cost of replacing electric vehicle (EV) batteries.
When EV batteries are damaged, partial repair is almost impossible.
In most cases, accordingly, batteries need to be replaced. Nonetheless, a substantial number of insurance companies do not cover the entire cost of replacement, causing a big burden for consumers.
To address such situations, a new insurance rider that will cover the full cost of battery replacement will be introduced, the Financial Supervisory Service said.
If policyholders add this rider to their insurance policy, they can receive full compensation for the replacement of EV batteries when the need arises.
For the replacement of a battery that has a price of 20 million won (US$17,390) and a lifespan of 15 years due to an accident two years after being released, EV owners who do not add the rider to their insurance policies would have to pay two-fifteenths of the replacement cost, or 2.67 million won.
However, if the consumers add the rider to their insurance policies, the replacement cost is covered entirely by the insurance companies.
Ashley Song (ashley@koreabizwire.com)
