General Insurance Association of Korea to Operate Reporting Center for Consumer Harm in Minor-Injury Auto Insurance Claims

The General Insurance Association of Korea announced on October 8 that it will begin operating the “Reporting Center for Consumer Harm in Minor-Injury Auto Insurance Claims” on October 12.

General Insurance Association of Korea logo

Following the recent amendment and implementation of the Enforcement Decree of the Automobile Accident Compensation Guarantee Act, an eight-week rule was introduced for reviewing the need for long-term treatment for patients with minor injuries classified as Grades 12 to 14. The association established the reporting center to prevent consumer harm and disputes that could arise from insurers’ inadequate claims handling during implementation of the system, and to improve unreasonable claims practices.

Reports may be filed if a patient was not notified to submit documents in the fourth or seventh week to extend a payment guarantee; if the patient was made to pay the cost of issuing review documents, such as a medical certificate; or if the patient was pressured to settle before treatment was completed. Reports concerning document-issuance costs will be accepted only during the period when insurers temporarily cover those costs to help the system take hold.

Reports may also be filed if an insurer fails to explain the objection process, unilaterally suspends a payment guarantee without reasonable grounds, or arbitrarily determines an injury grade.

Once a report is received, the association will verify the facts with the person filing the report and the insurer, take corrective measures if necessary, and inform the person of the outcome.

The General Insurance Association of Korea plans to regularly review the reporting center’s operations and use the cases it receives to address deficiencies in insurers’ claims handling. An association official said, “We will raise any shortcomings in the system identified during its operation with the relevant authorities and help ensure that the eight-week rule becomes firmly established in the handling of auto insurance claims.”

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