First Financial Sector Pledge Announcement
Includes Simplification of Real-Expense Claim System and More
[Asia Economy Reporter Jeon Jinyoung] On the 7th, the election campaign committee of Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, announced an insurance consumer pledge promising to alleviate the burden on insurance consumers, guarantee insurance payment, and protect the sales stage. This is Lee's first financial sector pledge.
The Open Finance Committee of the campaign committee held a press conference at the Yeouido party office in the morning to announce the launch of the committee along with the pledge. Lee did not attend the launch ceremony but explained in a written message, "It is nothing short of a tragedy that insurance consumers bear the burden of disputes not only over accidents but also over whether insurance payments are made," and added, "For the efficient management of national resources, the insurance system must be reformed."
This pledge focuses on ▲ alleviating the burden of disclosure obligations ▲ strengthening the sales responsibility of independent insurance agencies (GA) ▲ granting one-sided binding force to financial dispute mediation decisions ▲ simplifying the claims system for indemnity insurance ▲ establishing guidelines for protecting financial consumers on online platforms and strengthening legal responsibilities.
Regarding the alleviation of the disclosure obligation burden, the law will be amended so that if an insurance company clearly presents important matters subject to the disclosure obligation to consumers and the consumers have faithfully responded to the presented matters, the insurance company cannot refuse payment of insurance benefits for other reasons. For GAs above a certain scale, liability for consumer damages will be jointly borne with the insurance company, and for insurance disputes below a certain amount, insurance payments will be made based solely on the results of the Financial Dispute Mediation Committee. Additionally, if insurance consumers delegate the insurance claim to a hospital, the hospital will send supporting documents and claim forms, and the insurance company will pay the insurance benefits to the hospital or the insurance consumer, thereby simplifying the claim procedure.
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