(1) Reasons for Proposal

The amendment to the Enforcement Decree of the Insurance Business Act prescribes the types of miscellaneous non-life insurance contracts mandating inquiries about dual purchases and requiring insurance companies, etc., to provide explanations regarding dual compensation under miscellaneous non-life insurance contracts when insurance is purchased or insurance proceeds are claimed.

(2)Major Provisions

Define “miscellaneous non-life insurance with compulsory inquiry of dual purchase” as an insurance contract that covers attorney’s fees and financial aid associated with automobile accidents, injuries caused by uninsured vehicles, driving other automobiles, losses, fines, everyday liabilities, legal cost of civil procedures, legal cost of medical accidents, hole-in-one expenses, and repair expenses for 6 major home appliances, etc.

Require insurance companies, etc., to provide ordinary policyholders with an explanation of dual compensation under miscellaneous non-life insurance contracts when an insurance is purchased or insurance proceeds are claimed.

(3) Amendment Details

Partial Amendment to the Detailed Enforcement Regulations for Insurance Business Supervision

Partially amend the Detailed Enforcement Regulations for Insurance Business Supervision as follows.

In Article 2-34-2 (2) 3, change “in the case of indemnity medical insurance contracts, matters concerning dual compensation” to “in the case of indemnity medical insurance contracts or miscellaneous non-life insurance contracts specified in Article 2-34-3, matters concerning dual compensation”.

In Article 2-34-2 (3) 6, change “the fact that insurance proceeds are paid in proportion to each insurance contract in the case of dual purchase of indemnity medical insurance” to “the fact that insurance proceeds are paid in proportion to each insurance contract in the case of dual purchase of indemnity medical insurance or miscellaneous non-life insurance specified in Article 2-34-3.”

Newly insert Article 2-34-3 as follows.

Article 2-34-3 (Miscellaneous Non-life Insurance Contracts) In Article 42-5 (1) of the Decree, “an insurance product contract that pays only the actual amount of losses borne and that has been specified by the Governor of the Financial Supervisory Service” means an insurance contract purchased by an individual that covers the following losses; provided that it shall include any group contract and any insurance contract with an insurance period of 1 month or less:
  1. An insurance contract covering attorney’s fees and financial aid associated with automobile accidents;
  2. An automobile insurance contract covering injuries caused by uninsured vehicles, driving different vehicles, and losses;
  3. An insurance contract covering fines;
  4. An insurance contract covering everyday liabilities;
  5. An insurance contract covering the legal cost of civil procedures and medical accidents;
  6. An insurance contract covering hole-in-one expenses;
  7. An insurance contract covering repair costs for 6 major home appliances.

Addenda

Article 1 (Enforcement Date) These Detailed Regulations shall enter into force as of December 6, 2018.