Mandatory Dangerous Dog Liability Insurance from the 12th... Only 1,000 Cases Registered

Industry Estimates Half of 2,000 Registered Dangerous Dogs

[Asia Economy Reporter Ki Ha-young] Since February 12, it has become mandatory for owners of dangerous dogs to subscribe to dangerous dog liability insurance, but the number of subscriptions has been found to be only about half of the registered dangerous dogs.

According to the industry on the 16th, as of the 14th, the number of dangerous dog liability insurance subscriptions was estimated to be about 1,000. The number of registered dangerous dogs estimated by the insurance industry is around 2,000. Only about half of the registered dangerous dogs have insurance. However, for insurance companies that only allow face-to-face subscriptions through agents, the data was counted up to the 10th, just before the Lunar New Year holiday.

Dangerous dog liability insurance is designed to compensate for damage to other people's life, body, or property caused by dangerous dogs. With the enforcement of the revised Animal Protection Act Enforcement Decree and Enforcement Rules, from the 12th, owners of legally designated dangerous dogs who do not subscribe to liability insurance will be fined up to 3 million KRW.

Currently, there are four insurance companies offering dangerous dog liability insurance. Hana Insurance was the first to launch the product on the 25th of last month, NH Nonghyup Insurance launched it on the 1st of this month, Samsung Fire & Marine Insurance on the 3rd, and DB Insurance introduced dangerous dog liability insurance on the 10th by adding a special clause to their existing pet insurance. Hyundai Marine & Fire Insurance, KB Insurance, and Lotte Insurance are also preparing to launch dangerous dog liability insurance.

Although it became mandatory for dangerous dog owners to subscribe to liability insurance from the 12th, the fact that only about half of the registered dangerous dogs have subscribed is interpreted as an expected result. Some dangerous dog owners have not registered their dogs even while raising them, and they do not pay fines as long as they are not caught for not subscribing to insurance.

Insurance companies also find dangerous dog liability insurance burdensome due to profitability concerns. The subscription fee is about 15,000 KRW per year, while the liability coverage is up to 80 million KRW per victim. The insurance is designed to compensate up to 80 million KRW per person for death or permanent disability, 15 million KRW per person for injury, and at least 2 million KRW per accident for damage caused to other animals.

However, the market size for dangerous dog liability insurance is not large. Dangerous dogs are defined as dogs of the breeds Dosa, American Pit Bull Terrier, American Staffordshire Terrier, Staffordshire Bull Terrier, Rottweiler, and their hybrids. The insurance industry estimates about 2,000 registered dangerous dogs, and including unregistered ones, the total is estimated to be about 10,000. Considering about 2,000 dog bite incidents annually, this product is considered a loss-making one the more it is sold.