Motorcycle Collision and 'Kkung'... 1.4 Million Won Rider Jacket Also Compensated (Comprehensive)

Approval to Allow Compensation for Dedicated Clothing Besides Helmets
Push to Amend Standard Automobile Insurance Terms

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Jo Eun-sang (33), who rides a bike as a hobby, recently had a collision with a car that suddenly cut in while driving a motorcycle near Gapyeong. Although the motorcycle had to be declared a total loss, Jo was fortunately only bruised.

This was thanks to the protective gear attached to the 1.4 million won race suit he purchased this year. However, when he requested compensation after the jacket and protective gear were torn and broken, the other party's car insurance company responded that they could not compensate for clothing except for the helmet. He expressed frustration, saying, "I was spared from serious injury thanks to the expensive clothes and protective gear, so I don't understand why they are excluded from compensation," and added, "Isn't this basically saying that compensation is only given if you are seriously injured?"

A plan is being prepared to compensate motorcycle-specific clothing damaged in motorcycle accidents through automobile insurance. While compensation has been provided for protective gear such as helmets, this is the first time a compensation plan for clothing is being introduced.

According to financial authorities and the insurance industry on the 9th, the Financial Supervisory Service recently announced a preliminary notice of a revision to the insurance supervision enforcement rules that change the standard automobile insurance terms to reflect this content. According to the revision, in the event of a two-wheeled vehicle accident, if the driver proves the purchase price of the damaged two-wheeled vehicle-specific clothing, property damage compensation will be possible.

The magnificent sight of approximately 1,100 motorcycles gathered for the BMW Motorrad 2018 Season Opening Tour. Not only BMW bikes but also motorcycles from various makers such as Harley and Ducati participated. It can be called the definitive opening tour for riders.

Sangju, Gyeongbuk ? Photo by Dongju Yoon doso7@

Automobile insurance is fundamentally intended to compensate for damages caused by accidents. However, there have been frequent disputes over whether compensation should be provided for damaged items during the accident damage assessment process.

In personal automobile insurance terms, ‘damage to passengers' and companions' personal belongings’ is set as an exemption from compensation. However, damaged personal items are compensated on an actual expense basis up to 2 million won per person.

At this time, a separate standard distinguishes between personal belongings and portable items. Portable items generally refer to items carried in pockets or on the body, such as cash, securities, wallets, fountain pens, lighters, wristwatches, jewelry, and similar items. Clothing has also been treated as included in this category.

On the other hand, personal belongings exclude portable items and include items such as mobile phones, laptops, cameras, handbags, briefcases, and golf clubs. Compensation was only available for these personal belongings.

In particular, portable items include items for which it is objectively difficult to calculate the amount of damage or to prevent moral hazard, aiming to prevent claims for insurance money on the pretext of accidents for items already broken before the accident.

However, it has become an open secret in the insurance industry that if a broken golf club is carried in the car trunk and an accident occurs, compensation can be received, making the purpose of preventing moral hazard ambiguous. There have also been issues raised about the unclear distinction between personal belongings and portable items.

In the case of motorcycles, helmets and other protective gear have naturally been compensated as property damage under ordinary damage, while dedicated clothing such as jackets and suits, protective pads, gloves, and goggles have been excluded from compensation as accessories.

An insurance company official said, "Protective equipment that is legally required to be worn, like helmets, can be compensated, but most clothing and gloves have not been compensated," adding, "From the perspective of protecting the driver, compensation is reasonable, but various factors such as purchase timing and depreciation must be considered."