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  • Guarantee of Automobile Accident Compensation Act
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-05-24
    • Opinion Submission Deadline : 2021-06-07
Reasons for Proposal

The current Act stipulates that the liability for damages shall comply with the Civil Act when the property of another person is destroyed or damaged due to a motor vehicle accident (Articles 3 and 4 of the Guarantee of Automobile Accident Compensation Act), and accordingly, in case of a vehicle-to-vehicle accident, the liability shall be shared according to the percentage of negligence.

In this regard, there has been dispute over the cases, etc., where a victim must compensate the other party's vehicle for repairs even though the other party's negligence is obvious, such as drunk driving, and where a victim, even though he/she is responsible for a much lower percentage of negligence, must compensate a larger amount to the other party.

Therefore, this amendment aims to increase the burden of liability of the traffic offender with gross negligence by preventing him/her from claiming vehicle repair costs, etc., against the other party, raise awareness of compliance with traffic rules, and ensure a fairer sharing of vehicle repair costs when causing a motor vehicle accident by committing gross negligence as prescribed in the Act on Special Cases Concerning the Settlement of Traffic Accidents (Article 3 (2)) (Article 3 (2) newly inserted).


Major Provisions

Article 3

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