[Asia Economy Reporter Oh Hyung-gil] Auto insurance has been the only domestic financial product managed and supervised by the Ministry of Land, Infrastructure and Transport, but there is a claim that the competent authority should be changed to the Financial Services Commission.
Kim Chang-ho, a legislative researcher of the Financial Fair Trade Team at the National Assembly Legislative Research Office, stated in the report titled "Current Status and Improvement Tasks of Korean Medicine Treatment in Auto Insurance" released on the 10th, "The Financial Services Commission, with its expertise in finance, can manage not only the existing insurance management and supervision tasks but also auto insurance policies, auto insurance treatments, complaints from auto mutual aid associations, and the Auto Damage Compensation Promotion Agency."
Researcher Kim pointed out, "Non-life insurance companies handling auto insurance, the General Insurance Association, and the Insurance Development Institute must consult with the Ministry of Land, Infrastructure and Transport when dealing with auto insurance-related tasks," adding, "The Financial Supervisory Service handles auto insurance complaints, while complaints related to auto mutual aid associations are handled by the Ministry of Land, Infrastructure and Transport, causing confusion and limitations in management responsibility."
He added, "If the Financial Services Commission manages auto insurance along with general insurance such as life and non-life insurance, non-life insurance companies handling auto insurance and related organizations like the General Insurance Association and the Insurance Development Institute can handle general insurance tasks and auto insurance-related tasks comprehensively, improving work efficiency."
He especially criticized that close cooperation between ministries has not been achieved amid the recent rapid increase in Korean medicine treatments.
He emphasized, "Auto insurance requires management of medical expertise, including auto insurance-related laws, policies, and systems, as well as medical fields such as auto insurance fees and the rapidly growing Korean medicine treatments in auto insurance," adding, "The Ministry of Land, Infrastructure and Transport has limitations due to insufficient close cooperation with the Ministry of Health and Welfare regarding auto insurance fees and Korean medicine treatments, resulting in inadequate institutional improvements in medical management and insufficient reflection of field voices."
He continued, "The Financial Services Commission's Insurance Division is responsible for life and non-life insurance overall, but in the case of auto insurance, it only implements tasks limited to the Insurance Business Act, Insurance Contract Act, and the standard auto insurance policy," pointing out, "There are frequent overlaps with the Ministry of Land, Infrastructure and Transport."
Furthermore, he said, "The Financial Services Commission has experience in inter-ministerial consultations and operating consultative bodies with the Ministry of Health and Welfare regarding indemnity medical insurance," adding, "(For auto insurance as well) it is desirable that medical aspects be consulted with the Ministry of Health and Welfare, while the Financial Services Commission takes the lead in handling auto insurance laws, policies, and systems."
Meanwhile, the report proposed urgently establishing a deliberation and resolution body for Korean medicine treatment fee standards in auto insurance and preparing reasonable detailed review standards for Korean medicine treatment costs in auto insurance.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
