The Younger the Traffic Accident Perpetrator, the Higher the Insurance Settlement Payment

[Asia Economy Reporter Changhwan Lee] It has been found that the younger the age of the at-fault driver in a car accident, the higher the insurance settlement amount tends to be. The younger the at-fault driver, the more frequently victims receive Korean traditional medicine treatments, resulting in higher medical expenses.

According to the report titled "Characteristics and Implications of Automobile Insurance Bodily Injury Compensation by At-Fault Driver Age and Vehicle Type," authored by Senior Research Fellow Yongsik Jeon and Researcher Bae Hongbo from the Korea Insurance Research Institute on the 27th, when the at-fault driver is under 40 years old, the victim's medical expenses and settlement amounts are higher compared to when the at-fault driver is 40 or older.

Analyzing accidents that occurred from 2016 to 2019, the report revealed that in complaints filed accidents, when the at-fault driver was under 40, the proportion of victims receiving Korean traditional medicine treatment, medical expenses, settlement amounts, and the proportion of complaints from both parties were higher. The study focused on victims with 100% at-fault driver liability and injury grades between 11 and 14.

The average medical expenses compensated by at-fault drivers under 40 were 1,451,000 KRW, which is 180,000 KRW higher than the 1,273,000 KRW compensated by at-fault drivers aged 40 and above.

Regarding settlement amounts, at-fault drivers under 40 paid an average of 2,594,000 KRW, while those aged 40 and above paid 2,440,000 KRW.

Source: Korea Insurance Research Institute

The proportion of victims receiving Korean traditional medicine treatment was 61.8% when the at-fault driver was under 40, significantly higher than when the at-fault driver was 40 or older, and nearly double the 37.4% observed in accidents without complaints.

When the at-fault driver was under 40, the complaint filing rate by the at-fault driver was also higher, which the report attributes to the higher rate of Korean traditional medicine treatment among victims and the higher ratio of settlement amounts relative to economic losses.

The report analyzed that the younger the at-fault driver, the stronger the victim's compensation psychology may be.

Senior Research Fellow Jeon stated, "The reason why the proportion of victims receiving Korean traditional medicine treatment, medical expenses, and settlement amounts are higher in complaint-filed accidents appears to be due to stronger compensation psychology. It was found that the victim's expectation for compensation is influenced not only by the severity of injury but also by the age group of the at-fault driver."

He added, "It is necessary to improve the system to reduce the impact of demographic characteristics such as the at-fault driver's age on the victim's treatment behavior and compensation, and to objectify compensation according to the severity of the victim's injury. In particular, since the proportion of Korean traditional medicine treatment varies by the at-fault driver's age group and affects medical expenses, settlement amounts, and complaints, continuous improvement of the Korean traditional medicine treatment system is needed," he emphasized.