Daejeon City Mandates Subscription to 'No-Fault Fire Insurance' for Multi-Use Facilities

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City will mandate the subscription of 'no-fault fire insurance' for multi-use facilities within the jurisdiction.

According to the city on the 14th, starting from July 6, a mandatory fire liability insurance subscription system will be implemented for multi-use facilities.

Fire liability insurance serves as a safety measure that allows victims to receive compensation even if the business owner is not at fault (no-fault) when a fire occurs.

Until now, even if the business owner subscribed to fire liability insurance, compensation was difficult when there was no fault on the part of the business owner, such as in cases of arson or unknown causes.

However, with the amendment of the Special Act on the Safety Management of Multi-use Facilities, from now on, when the business owner or prospective business owner of a multi-use facility subscribes to fire liability insurance, it will include no-fault coverage.

The mandatory subscription system for fire liability insurance will also be implemented in line with this.

With the mandatory insurance subscription, business owners who have already subscribed to fire liability insurance must change the coverage or newly subscribe by July 5, 2021, as the insurance effect lasts until then.

However, if the existing insurance already includes no-fault coverage, no separate change or subscription is required.

Conversely, if the business owner of a multi-use facility does not subscribe to fire liability insurance, a fine of up to 3 million KRW will be imposed depending on the period.

A Daejeon Fire Headquarters official said, “We ask business owners of multi-use facilities to subscribe to fire liability insurance that includes no-fault coverage so that citizens affected by fires in multi-use facilities can receive more benefits.”