Starting September 10, Automobile Insurance "8-Week Rule" Enforced... Post-8-Week Treatment Requires KAIDMB Review

From October 25, Future Medical Expense Payments by Insurers

To Be Determined by Objective Standards, Not Customary Practices

Starting from September 10, the so-called "8-week rule," which limits long-term treatment for minor traffic accident injuries, will be implemented. If a patient wishes to receive treatment for more than 8 weeks, a review by the Korea Automobile Insurance Dispute Mediation Board (KAIDMB), which operates under the Ministry of Land, Infrastructure and Transport, will be required. Beginning October 25, compensation for future medical treatment—previously given as a lump-sum 'settlement payment' calculated in advance by insurers for anticipated treatment expenses—will no longer be paid based on customary practices but determined according to objective standards.

On September 2, the Financial Supervisory Service announced that it discussed the automobile insurance 8-week rule and future medical expense agenda at the 4th Financial Consumer Protection Advisory Committee.

According to the Financial Supervisory Service, the revised enforcement decree of the Motor Vehicle Compensation Guarantee Act will take effect on September 10. Under this new regulation, minor injury patients classified as levels 12 to 14—such as those with simple contusions or sprains—who wish to continue treatment beyond 8 weeks must undergo a review by medical professionals at the KAIDMB regarding the necessity of further treatment. Minor injury patients are required to submit essential documentation, including a diagnosis report, copies of medical records, and image CDs from examinations, within 7 weeks of the accident to the insurance company. The KAIDMB must notify the review result within 7 days of receiving the request.

From October 25, the practice of insurers paying future medical expenses solely based on agreement with the patient will be improved. Previously, even in the absence of grounds in the automobile insurance policy and without reviewing the necessity for further treatment, insurers commonly paid future medical expenses following settlement with patients. Going forward, these payments will only be made for serious injury patients (grades 1 to 11) if the expenses are objectively recognized as necessary for future treatment. For minor injury patients, the principle will be to provide sufficient guaranteed treatment, rather than payment for future medical care.

Additionally, the Financial Supervisory Service stated that the compensation notice process has been improved to provide consumers with prompt information—using notification messages—on important matters to be aware of from the time of purchasing automobile insurance through the accident handling process. As soon as a new policy is purchased, renewed, or a vehicle accident is reported, the procedures for treatment cost compensation and the standards for future medical expenses will be promptly explained. Moreover, to prevent accident victims from missing the opportunity to request a review, additional reminders will be sent during weeks 3 to 4 and weeks 6 to 7 following the accident.

This content was produced with the assistance of AI translation services.