SEOUL, Feb. 24 (Korea Bizwire) – The government plans to roll out new insurance plans reserved for electric cars around September, officials said Wednesday, in a move expected to help green car users pay less for premiums.
The Ministry of Trade, Industry and Energy and the Financial Services Commission (FSC) were to sign a memorandum of understanding with the Korea Insurance Development Institute and other relevant agencies later in the day to jointly develop such programs, according the officials.
The government has also agreed with local carmakers to set up and run a joint consultative body for the project.
“The insurance institute will be in charge of market analysis and assessment such as setting the insurance rate, while auto makers are to provide relevant statistics and be prepared to conduct collision tests,” an industry ministry official said.
After wrapping up hazard evaluations by June and overseas case studies the following month, the government plans to fine-tune details with insurance companies to launch products in September, he added.
Currently, electric car users pay up to 400,000 won (US$324) more as the price for their vehicle is higher due mainly to expensive batteries.
“The insurance exclusive for the eco-friendly car drivers is expected to help reduce their burden to some degree,” an FSC official said.