Up to 10% Insurance Surcharge for Violating Traffic Laws in School Zones and Crosswalks

The increased insurance premiums will be fully used to provide discounts for drivers who comply with traffic regulations.

[Asia Economy Reporter Park Sun-mi] Starting from September, insurance premiums will increase by up to 10% for traffic violations in school zones and crosswalks.

On the 27th, the Ministry of Land, Infrastructure and Transport, the Financial Supervisory Service, and the Korea Insurance Development Institute announced that as part of establishing a pedestrian-first traffic safety system, from September, drivers who violate traffic regulations (Road Traffic Act) in children protection zones and crosswalks will face up to a 10% increase in their automobile insurance premiums. The increased premiums will be fully used to provide discounts to drivers who comply with traffic regulations.

According to the revised automobile insurance premium surcharge system, a 5% premium increase will be applied for a first offense of speeding over 20 km/h in children protection zones, and a 10% increase for two or more offenses. This regulation will apply to automobile insurance policies starting in September. The same rules will apply to speed violations in elderly and disabled protection zones.

If a driver fails to stop when a pedestrian is crossing a crosswalk, violating the obligation to protect pedestrians, a 5% premium increase will be applied for 2 to 3 offenses, and a 10% increase for 4 or more offenses. This will be implemented starting January next year.

The premium surcharge aims to reduce pedestrian (children, elderly, general) traffic accidents by encouraging drivers to comply with traffic regulations in children protection zones and crosswalks. Drivers must travel at 30 km/h or less in children protection zones and must come to a complete stop when pedestrians are crossing at crosswalks.

Currently, the automobile insurance premium surcharge system applies up to 20% for unlicensed driving, drunk driving, and hit-and-run, and up to 10% for signal violations, speeding, and crossing the center line. However, there were no separate surcharge regulations for violations within protection zones and crosswalks.

Although traffic accident fatalities in South Korea have been decreasing annually, last year 36% (1,093 people) of all traffic accident deaths occurred while walking, which is significantly higher than the OECD average of about 20%. In particular, 22% of pedestrian deaths (over the past 3 years) occurred while crossing crosswalks, and 66% of child deaths and 56% of elderly deaths occurred while walking in children and elderly protection zones.

Kang Seong-seup, head of the Traffic Safety Policy Division at the Ministry of Land, Infrastructure and Transport, stated, “Although traffic accident fatalities have continuously decreased, pedestrian deaths remain higher than the OECD average,” and added, “We expect this insurance system reform to contribute to fostering a mature traffic culture and reducing pedestrian traffic accident fatalities.”