No More Insurance Coverage for Car Accidents Caused by DUI or Unlicensed Driving

A police officer conducts a sobriety test on a driver with a sensor on a stick in Seoul on May 19, 2020. (Yonhap)

SEOUL, March 29 (Korea Bizwire) — Insurance payouts resulting from all accidents related to driving under the influence, unlicensed driving, or hit-and-runs will now be charged to the perpetrator for the full amount.

The Ministry of Land, Infrastructure and Transport announced Sunday that it will come up with a revised car insurance policy as a follow-up measure to a joint announcement last week pledging to lower the death toll from car accidents.

The ministry will allow all insurance fees to be charged to the perpetrator in the case of driving under the influence, unlicensed driving, or hit-and-run accidents.

Previously, perpetrators were charged with a partial amount of the insurance payout as a warning against future accidents.

This policy, however, was deemed ineffective by many since perpetrators ended up paying only a small amount.

For instance, a DUI accident that happened in Incheon last September killed a delivery man. Compensation of 270 million won (US$238,500) was paid by the insurance company for his death, but only 3 million won was charged to the perpetrator.

In response, the government raised the amount charged to the perpetrator last year from 3 million won to 10 million won for the injury or death of a person, and from 1 million won to 5 million won for damaging property.

Now, the ministry decided to go even further, charging the perpetrator to pay for the full amount of insurance compensation.

Any future accidents caused by drunk-driving or other serious violations are bound to take a significant financial toll on the perpetrator.

H. M. Kang (hmkang@koreabizwire.com)