Even with Higher Accident Deductibles... Drunk Driving Does Not Stop

Over 17,000 Drunk Driving Accidents Last Year... 9.7% Increase from Previous Year
Raising Accident Liability Cap and Legislative Move to Claim Full Insurance Compensation

[Asia Economy Reporter Oh Hyung-gil] Although financial authorities are increasing the economic burden on perpetrators who cause traffic accidents due to drunk driving, such accidents are not decreasing. Calls are gaining momentum to accelerate the revision of the law to require full reimbursement of insurance payments made for traffic accidents caused by drunk driving in order to raise awareness about the dangers of drunk driving.

According to the insurance industry on the 3rd, the financial authorities implemented a standard automobile insurance policy last June that introduced accident burden charges for drunk driving and hit-and-run incidents in voluntary automobile insurance. When a drunk driving accident occurs, the non-life insurance company first compensates the victim and then recovers a certain amount as an accident burden charge from the drunk driver. The policy was revised to impose up to 100 million KRW for bodily injury liability II and up to 50 million KRW for property damage liability even in voluntary insurance where there was no accident burden charge before.

In October, the accident burden charges for drunk drivers were further increased. For bodily injury accidents (bodily injury liability I), the charge was raised from 3 million KRW to 10 million KRW, and for property damage accidents (property damage liability under 20 million KRW), it was raised from 1 million KRW to 5 million KRW. As a result, a system was established to compensate up to 165 million KRW for accidents caused by drunk driving.

However, despite the increased economic burden, drunk driving accidents have been on the rise. According to the Traffic Accident Analysis System (TAAS) of the Korea Road Traffic Authority, there were a total of 17,247 drunk driving traffic accidents last year, an increase of 9.7% compared to the previous year. Drunk driving did not decrease even after the introduction of the voluntary accident burden charge in June.

Although drunk driving accidents began to decline from November, this is analyzed to be due to the impact of the third wave of COVID-19, which raised quarantine measures to level 2.5. Even this year, drunk driving accidents continue, such as a recent incident near Ttukseom Station in Seongdong-gu, Seoul, where a heavily intoxicated Mercedes-Benz driver struck and killed a day laborer.

The insurance industry is demanding the establishment of stronger regulations against drunk drivers. Accordingly, the government plans to implement a measure in the second half of this year to remove the upper limit on accident burden charges. The Ministry of Land, Infrastructure and Transport has announced plans to amend the Automobile Damage Compensation Guarantee Act to prevent insurance benefits for serious legal violations even if the driver has automobile insurance.

If the upper limit on accident burden charges is removed, insurance companies will be able to recover the full amount of insurance payments made to victims from the perpetrators. The insurance industry expects this will help reduce the burden of increased loss ratios caused by drunk driving accidents.

Legislation is also being pursued to prevent claims for compensation to the other party when an accident is caused by drunk driving. Park Sang-hyuk, a member of the Democratic Party, proposed an amendment to the Automobile Damage Compensation Guarantee Act last month that prohibits perpetrators from claiming the repair costs of their vehicles from the other party in cases of accidents caused by 12 major negligent acts, including drunk driving and driving without a license.

A representative from a non-life insurance company said, "Despite the Yoon Chang-ho Act and the increase in accident burden charges, drunk driving accidents are still increasing," adding, "If the system is strengthened to require full reimbursement of accident burden charges, it could instill significant awareness among drivers."