Coupang Flex and Baemin Connect Expand 'Shared Transportation Service'
Only Vehicles with 7 or More Seats Eligible for Paid Transportation Special Contract
Financial Supervisory Service Introduces Paid Transportation Special Contract for Passenger Cars
New Path Opened for Compensation of Damages in Paid Transportation Accidents
[Asia Economy Reporter Oh Hyung-gil] Drivers who transport parcels using personal vehicles, such as Coupang Flex or Baemin Connect, will soon be able to receive compensation for damages caused by accidents during transportation.
The Financial Supervisory Service announced on the 22nd that it will establish a special contract for paid transportation insurance available for passenger cars with six seats or fewer.
Paid transportation vehicles have high mileage and a high risk of accidents, so they had to subscribe to expensive commercial vehicle insurance (for taxis) or business-use paid transportation special contracts. Additionally, only vehicles with seven seats or more could subscribe to the paid transportation special contract, leaving vehicles with six seats or fewer without coverage and in a blind spot.
The newly introduced paid transportation special contract for passenger cars with six seats or fewer will be sold in two types: an On-Off type 'group insurance' that can be switched on and off like a switch, and a 'personal insurance' type that provides continuous coverage.
The group insurance type, launching at the end of this month, can be subscribed to by platform operators providing shared transportation services to cover accidents during paid transportation by their affiliated delivery drivers.
Insurance premiums are charged in 10-minute increments of transportation time, with the premium around 138 KRW per 10 minutes. Compensation is provided only for accidents occurring while the driver is 'On' and engaged in paid transportation.
The personal insurance type, which private vehicle drivers transporting cargo can subscribe to directly for continuous coverage, has premiums around 40% of their personal auto insurance premium. Drivers already insured can add this special contract starting August 10.
For example, a driver paying 650,000 KRW for personal auto insurance would pay about 910,000 KRW in total when subscribing to the paid transportation special contract. In contrast, subscribing to business-use paid transportation special contracts or commercial insurance would cost approximately 1,250,000 KRW and 1,240,000 KRW respectively.
However, this special contract covers paid transportation of cargo or pets, not passengers, so passenger damages are not compensated and should be noted. Also, even if subscribed, damages to goods during transportation are not covered.
A Financial Supervisory Service official explained, "When drivers participating in the sharing economy subscribe to the paid transportation special contract, they can receive sufficient compensation for accidents during paid transportation, easing their economic burden."
The Financial Supervisory Service announced on the 22nd that it will establish a special contract for paid transportation insurance that can be subscribed to by passenger cars with six seats or fewer.
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