Proactive Government Compensation Guidance for Hit-and-Run and Uninsured Accident Victims

Scene of the traffic accident / Photo by Chungbuk Fire Headquarters

[Asia Economy Reporter Noh Kyung-jo] From this year, it will become easier for victims of hit-and-run and uninsured accidents to apply for compensation from the Automobile Damage Compensation Guarantee Project (government guarantee project).

The Ministry of Land, Infrastructure and Transport and the National Police Agency announced on the 8th that when victims report accident damage to the police, the Automobile Damage Compensation Promotion Agency will promptly receive related data and proactively guide victims to apply for compensation under the government guarantee project.

The government guarantee project is a system designed to quickly support personal damages caused by hit-and-run, uninsured vehicles, and falling objects from vehicles, which are difficult to be compensated directly by the other party in a car accident. Victims who apply for government compensation can be compensated up to the maximum liability insurance limit depending on the extent of the damage. In cases of death or permanent disability, up to 150 million KRW, and for injuries, up to 30 million KRW. The government later exercises subrogation rights against the perpetrator.

Until now, victims of hit-and-run and similar accidents had to check the claim procedures and documents themselves and apply for compensation through insurance companies to receive compensation from the government guarantee project. There were concerns that victims, overwhelmed by the accident, might miss the application and fall into a compensation blind spot.

The government has unified the application agency to the Automobile Damage Compensation Promotion Agency along with proactive guidance for the government guarantee project compensation. The application deadline is within 3 years from the date the damage is known (usually the accident date). Compensation items include consolation money, medical expenses, lost income due to work absence, and loss of earnings (in cases of death or permanent disability).

Jeon Hyung-pil, Director of the Mobility Automobile Bureau at the Ministry of Land, Infrastructure and Transport, said, "Through cooperation with the National Police Agency, we expect that victims of hit-and-run and uninsured accidents will be able to receive compensation for personal damages without inconvenience," and added, "We will strive to provide visiting compensation services to eligible recipients of the government guarantee project in cooperation with related agencies."