The problems and suggestions of possible improvement of the current car insurance in Korea : Focusing on the compensation of personal injury

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· 발행기관 : 제주대학교 법과정책연구원
· 수록지 정보 : 법과정책 / 21권 / 3호 / 187 ~ 218페이지
· 저자명 : 박은경

초록

Korean general insurance industry has grown fast. However, Korean auto insurance industry has experienced serious difficulties due to market saturation, high loss rate m.asiae.co.kr/view.htm?sec=n1&no=*************091125 (the last access 2015.10.05.) and price regulations by authority lately. There have been various efforts to overcome the current difficult situation through the improvement and reform of automobile insurance system in Korea.
There is a research proving that the current compensation system that embraces the principle of liability with fault and the liability insurance in relation to the motor vehicle accident which leads to physical injuries has a limitation on fairness, promptness, and efficiency. Firstly, looking from the fairness aspect, under the tort law compensation system, quite a few victims suffered physical injuries from motor vehicle accidents were not compensated at all, and many others who received the compensation were not appropriately compensated. Even sometimes, victims who received a serious bodily injury from motor vehicle accidents were given not enough compensation to cover their medical treatment. Secondly, looking from the promptness aspect, compensation process under the tort law compensation system is complicated and slow. As a result, victims are disadvantaged from it, this often leads to lawsuits. Thirdly, looking from the efficiency aspect, costs for operating the current compensation system is way too expensive. Younger the victim is and more serious the injury is, more court proceedings will be brought forward and the time for compensation will become even slower. This will later create transaction costs and therefore the compensation becomes inefficient. Kwon, Teckyeon, “Study on the Performance of the Personal Injury Reparation System from Automobile Accidents and the Recommendations for Future Development : The Implication of No-Fault Reparation Systems in Korea”, Sogang University, Thesis of Doctorate Degree, 2000, pp.163~172.


In this context I have a very keen interest in Accident Compensation Act(AC Act) of New Zealand. In my research on the improvement of Korean automobile insurance compensation system I am trying to use AC Act of New Zealand as a model for legislation. So the purpose of this study is to examine the New Zealand accident compensation scheme, so called ‘No-fault insurance system’ But I think ACC is not a kind of insurance but belongs to a social contract.
, focusing the compensation for car accident victims, A recent report shows us that public trust and confidence on the services of ACC is 60%, clients’ satisfaction is 76%, and levy payers’ satisfaction is 69% in June 2015.(“Improve our customers’ outcomes and experience”, ACC Annual Report, 2015, pp.14~15) and compare it with Korean auto liability insurance system and related laws. Thereby, I want to have useful implications for the reform of Korean automobile insurance system. This article will focus on compensating personal injury caused by car accident.
Currently in Korea, the motor vehicle insurance (liability for bodily injury Ⅰ) is a compulsory insurance under the law, and also it is operated as a semi no-fault system. That is, if a driver cannot prove that a passenger had committed a suicide or had an intention to harm him or herself, a driver is liable for the compensation. Therefore, analysis of the New Zealand’s Accident Compensation Act and its outcome will become great resources in the future for us to be able to efficiently reform the motor vehicle insurance and the tort law based compensation system. Once Korea implements a one entity system (ACC) like New Zealand, issues like the conflict of compensation between social insurance and private insurance, and the problems arising from different insurance premiums will be resolved. Looking from the victim’s perspective, one entity system will provide a prompt compensation. Further, if the relevant costs can be reduced and it is more efficient because the compensation and related processes are handled by one entity only, this can be a great system in reducing the social costs.

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