Refer Report
The traffic accident processing support special contract that can be added when signing up for driver’s insurance guarantees the criminal settlement that the insured person must pay to the victim of a traffic accident. As the importance of criminal settlement increases due to the strengthening of related laws such as the Road Traffic Act, interest in this special contract is growing.
The Financial Supervisory Service analyzed dispute cases and provided information on what consumers should be aware of regarding special provisions for traffic accident processing support funds. First, since criminal settlement funds are paid for the purpose of reducing punishment during the investigation or trial process, if the criminal procedure is concluded with a summary order, it is difficult to view the amount paid after settlement as a criminal settlement fund and therefore is not subject to compensation. Settlement funds paid in cases where there is no criminal liability are also not subject to compensation.
The traffic accident processing support special contract compensates for actual losses by providing criminal settlement money that is actually paid or agreed to be paid within the compensation limit of the terms and conditions. To claim insurance money, you must submit to the insurance company a criminal settlement document that has been submitted to the police station or prosecutor’s office and that specifies the settlement amount, as well as documents proving the accident and damage.
Even if you cause a serious traffic accident that violates the speed limit by 20 km/h, if the victim’s diagnosis treatment period is less than 6 weeks, you may not receive traffic accident processing support money from your driver’s insurance. This is because you do not meet the ‘injury diagnosis of 6 weeks or longer’ requirement for insurance payment according to the terms and conditions.
The Financial Supervisory Service explained that some traffic accidents have products that selectively compensate for treatment periods of less than six weeks, so additional special provisions should be subscribed to when necessary.
Reporter Kang Hyun-woo hkang@hankyung.com
Source: Korean