[Getting Insurance Savvy] "Thud" While Riding an Electric Kickboard... You May Not Receive Insurance Benefits

Child Injured in Kickboard Accident
Unable to Receive Insurance Compensation Due to Liability Exclusion

[Asia Economy Reporter Oh Hyung-gil] Mr. Jo Seong-jin (49, pseudonym) recently experienced an accident where his son, riding an electric kickboard, collided with a bicycle, seriously injuring the other party. They settled for 12 million won with the injured party, who suffered serious injuries including fractures, and filed a claim for daily life liability insurance with the insurance company. However, the insurer refused to pay, citing an exemption clause in the policy.

Mr. Jo claimed he was not informed that accidents caused by electric kickboards were not covered under liability insurance, but the insurance policy clearly stated that "liability arising from the use of vehicles" is not covered.

Consumers should be cautious as there is a high possibility of receiving no compensation if an accident occurs while riding an electric kickboard without realizing it.

According to the insurance industry on the 11th, accidents involving electric kickboards have been rapidly increasing recently. Samsung Fire & Marine Insurance reported 1,447 automobile versus electric kickboard accidents last year, eight times the number in 2017. During the same period, the amount of damages also surged from around 800 million won to 3.7 billion won last year.

The insurance industry advises that when subscribing to daily life liability insurance, "if you continuously use a two-wheeled vehicle or a motorized bicycle, you must immediately notify the company; failure to do so may result in contract termination or denial of compensation."

In cases like Mr. Jo’s, who subscribed to insurance after hearing such explanations, no compensation is provided at all.

Additionally, if an accident occurs while riding an electric kickboard without proper safety equipment, there is a high chance that no compensation will be paid, so caution is required.

A representative case is Mr. A, who died riding an electric kickboard without a helmet. In 2015, Mr. A fell while riding an electric kickboard in Jeonju, Jeonbuk, and died. His family filed a lawsuit against the rental company, claiming that the company failed to properly provide safety gear such as helmets or training on how to use the kickboard. The family demanded the rental company pay about 100 million won in insurance money.

The first trial court accepted these claims and ordered the company to pay a total of 85 million won, partially recognizing the rental company’s negligence for failing to fulfill safety education obligations.

However, the appellate court reversed the decision.

The court closely examined what measures the electric kickboard rental company had taken to ensure the safety of renters. The rental company had posted a notice titled "Mandatory Items When Operating" at the store, informing riders of the obligation to wear safety equipment, and provided helmets free of charge at the store. Accordingly, the appellate court ruled that the rental company had sufficiently fulfilled its duty to protect users.

The court pointed out that "Mr. A voluntarily chose not to wear a helmet, there were no mechanical defects in the electric kickboard, and the brain hemorrhage occurred despite no obstacles on flat ground," siding with the rental company.