[Asia Economy Reporter Oh Hyung-gil] Hanwha General Insurance officially apologized on the 25th regarding the controversy over filing a lawsuit against elementary school student A. The company announced that it would withdraw all related lawsuits and would not claim subrogation fees in the future.
Kang Sung-soo, CEO of Hanwha General Insurance, stated in an apology letter on the same day, "I deeply apologize with a bowed head to the public and our policyholders for causing concern regarding the lawsuit filed against an elementary school student recently raised in a national petition."
The controversy began on the 23rd when a YouTube channel run by a traffic accident specialist lawyer introduced the fact that Hanwha General Insurance had filed a lawsuit against an elementary school student. Subsequently, on the 24th, a petition titled "Please reveal which insurance company filed a lawsuit against an orphaned elementary school student" was posted on the Blue House national petition board, with about 150,000 participants as of that day.
CEO Kang explained, "The other party in the accident (A’s father) was unlicensed and uninsured, so in November 2019, we first compensated all damages to a third victim injured in the accident (a passenger in the vehicle). We requested reimbursement of subrogation fees for the portion corresponding to the motorcycle driver's fault from the insurance money already paid."
He added, "Although the lawsuit was a legitimate legal procedure, before filing the lawsuit, the company failed to carefully consider the family and economic situation of the lawsuit party and lacked efforts to find legal guardians. The company has withdrawn the lawsuit and will not claim subrogation fees against the minor child in the future."
Hanwha General Insurance also added that it would pay the unpaid insurance money according to procedures once the elementary school student reaches adulthood.
A’s mother (Vietnamese) is currently out of contact, and Hanwha General Insurance paid death benefits of 150 million KRW, divided in a 4:6 ratio to A (60 million KRW) and A’s mother (90 million KRW). However, since A’s mother has been unreachable, the 90 million KRW insurance money has been held for six years.
CEO Kang said, "Unless the mother of the minor child directly claims, there is no appropriate way to pay the insurance money to the spouse, so payment has not been made. If a rightful claimant files a claim or a legally valid method is confirmed, the insurance money will be paid immediately."
Below is the full text of Hanwha General Insurance’s apology letter.
Apology Letter
First, regarding the lawsuit against an elementary school student recently raised in a national petition, we deeply apologize with a bowed head to the public and our policyholders for causing concern.
The traffic accident in question was a mutual fault accident that occurred around June 2014. It was an accident between our policyholder, a car driver, and the motorcycle driver who is the father of the minor child. We paid the death benefits to the minor child’s guardian (aunt) in October 2015 according to the legal ratio. However, since the other party in the accident (the minor child’s father) was unlicensed and uninsured, in November 2019, we first compensated all damages to a third victim injured in the accident (a passenger in the vehicle) and requested reimbursement of subrogation fees for the portion corresponding to the motorcycle driver’s fault from the insurance money already paid.
Although the lawsuit was a legitimate legal procedure, before filing the lawsuit, the company failed to carefully consider the family and economic situation of the lawsuit party and lacked efforts to find legal guardians. Upon confirming these points, the company withdrew the lawsuit and will not claim subrogation fees against the minor child in the future. Also, unless the mother of the minor child directly claims, there is no appropriate way to pay the insurance money to the spouse, so payment has not been made. If a rightful claimant files a claim or a legally valid method is confirmed, the insurance money will be paid immediately. When the minor child reaches adulthood and acquires rightful claims according to procedures, the insurance money will naturally be paid to the minor child.
We humbly accept your criticism, will improve our internal systems, and ensure that such incidents do not recur. Once again, we apologize for causing concern and will strive to become a better company. Thank you.
Kang Sung-soo, CEO of Hanwha General Insurance Co., Ltd.
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