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National Assembly Legislation

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  • Guarantee of Automobile Accident Compensation Act
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-07-07
    • Opinion Submission Deadline : 2021-07-21
Reasons for Proposal

Reason for proposal and main contents


The current Act prescribes that the industry shall voluntarily organize a car insurance & service council and have discussions on the service fee calculation, etc. in order to prevent and adjust disputes on car-insured service fees between insurance companies, etc. and motor vehicle service companies. In addition, matters thus agreed upon shall be referred to when service fee contracts are concluded between insurance companies, etc. and motor vehicle service companies.

In relation to this matter, as no agreement has been made on the service fee calculation since 2018 until now, practical service fee levels are not sufficiently reflected at present; hence the opinion that many service companies are suffering from management difficulties due to excessively low service fee levels.

Accordingly, the draft is intended to improve the effectiveness of operation of the car insurance & service council system using the method wherein the car insurance & service council makes an agreement on matters regarding service fee calculation until June 30 every year similar to the minimum labor calculation system and that, if the agreement is not made, the Minister of Land, Infrastructure and Transport notifies the matters until August 1 every year by hearing the opinions of the car insurance & service council (Article 15.2.6 of the draft).

Major Provisions

Article 15.2 of the draft

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