Financial Services Commission: "Insurance Payments for Flood-Damaged Vehicles to Be Processed as Quickly as Possible"

On the 9th, vehicles that were submerged due to heavy rain in front of Jinheung Apartment in Seocho-gu, Seoul, are emerging as the water recedes. Photo by Jang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Hyowon] Compensation for vehicles damaged by flooding due to heavy rain in the Seoul metropolitan area is expected to be processed quickly. The usual compensation processing period of about ten days is likely to be shortened.

On the 10th, the Financial Services Commission stated, "Although it usually takes about 10 days from accident report to insurance payment, the non-life insurance industry plans to pay insurance claims as quickly as possible for damages caused by this heavy rain."

The Financial Services Commission explained, "If you have purchased the own-damage coverage of automobile insurance, you can receive compensation for damages to the vehicle caused by flooding, and the insurance payment will be made up to the vehicle value stated in the insurance policy."

Major covered cases include ▲vehicles damaged by flooding while parked in apartment parking lots ▲vehicles damaged due to typhoons, floods, etc. ▲vehicles swept away and damaged while passing through flooded areas.

Owners of flooded vehicles should report the accident to their insurance company and claim insurance money through vehicle repairs. After damage assessment and review, the insurance payment will be made.

However, the Financial Services Commission explained that damages caused by opening the sunroof or intentionally passing through restricted access areas may be difficult to cover.

If you have not subscribed to the 'single-vehicle accident damage compensation' special contract under own-damage coverage, or if repair costs exceed the vehicle value, or for damages to items left inside the vehicle, insurance payment may be difficult.

Insurance companies plan to provide thorough guidance via text messages to automobile insurance subscribers, accident reporters, and owners of flooded tow vehicles about how to respond to vehicle damage, coverage details, and procedures for prompt insurance payment.

The insurance industry is operating a comprehensive response team centered on the General Insurance Association and is also preparing temporary storage locations for flooded vehicles.

In cases where a vehicle is declared a total loss and replaced with a new one, obtaining a 'Certificate of Total Loss of Automobile' from the insurance company can allow partial exemption from acquisition tax.