Controversy Over Deaths After COVID-19 Vaccination... Can Insurance Benefits Be Claimed? (Comprehensive)

No Obligation to Disclose Vaccination Status
Varies Depending on Insurance Enrollment and Signed Agreements

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] ‘If someone dies after receiving the COVID-19 vaccine, can they receive insurance benefits?’

With COVID-19 vaccinations set to begin on the 26th, there is growing interest in whether compensation will be provided for physical effects and aftereffects caused by adverse reactions (side effects). This comes amid increasing concerns about vaccine safety following a series of deaths overseas after vaccination.

The government has established a policy to compensate for adverse reactions to the vaccine, but currently, individuals must bear the costs of treatment and medication themselves. Insurance companies explain that while treatment costs can be covered by actual expense medical insurance, whether insurance benefits are paid in the event of death may vary depending on the case.

According to the insurance industry on the 18th, most insurance companies have decided not to require policyholders to disclose whether they have received the COVID-19 vaccine.

An official from a life insurance company stated, "In the case of the flu vaccine, there is no separate guideline requiring policyholders (consumers) to inform the insurer about vaccination status," adding, "The same applies to the COVID-19 vaccine; there is no need to separately notify vaccination status."

[Image source=Yonhap News]

Generally, policyholders must inform the insurer of important matters such as their medical history and occupation before entering into an insurance contract or during the coverage period. The fact that insurers do not impose a disclosure obligation means that vaccination status will not be a significant consideration during the insurance application or claims review process.

An official from a non-life insurance company also said, "It means that insurance enrollment or benefit payment cannot be denied simply because someone has been vaccinated," adding, "Since the government is planning nationwide vaccination for the public, there is no need to separately report vaccination status."

However, insurance companies maintain that it is not yet possible to uniformly determine whether insurance benefits will be paid in the event of death following vaccination. Currently, deaths from COVID-19 are classified as ‘accidents’ under life insurance and as ‘illnesses’ under non-life insurance.

The government has announced that it will compensate for adverse reactions to the vaccine if causality is proven. However, there are concerns that proving causality is difficult and that side effects may appear over a long period, potentially hindering proper compensation.

An insurance industry official said, "If treatment or medical care is required due to aftereffects, claims can be made under actual expense insurance for those costs," but added, "In the case of death following vaccination, the specific insurance policy and cause of death must be examined."

Meanwhile, the courts have ruled that death from COVID-19 cannot be considered death due to injury. In October last year, the Daegu District Court ruled that an insurer was not obligated to pay accidental death insurance benefits to the bereaved family of a policyholder who died from COVID-19, despite having a non-life insurance policy covering accidental injuries.