Promoting Compensation for Injuries at Kids Cafes... Strengthening Safety of Children's Play Facilities

Enhancing Child Safety... Insurance Enrollment Must Also Be Notified

[Asia Economy Reporter Jang Sehee] Mr. Kim (42) could not claim insurance benefits despite his child suffering a broken arm while swinging at a playground. The insurance company refused payment, stating that there was no defect in the facility and thus it did not fall under liability insurance. Mr. Kim later barely received compensation through an additional special clause covering in-house medical expenses. Ms. Han (34) experienced an accident where her 6-year-old child fell while coming down from a jungle gym in a restaurant playroom and hit their forehead on a nearby arcade coin return machine, causing a laceration. The restaurant said there was no water on the floor and that the accident was not due to the facility, so they would not process insurance claims.

Managers and Insurers Passive on Compensation... Expanding the Concept of Liability to the Entire Space

It has been pointed out that it is very difficult for children to receive compensation even if they are injured at children’s playground facilities. Managers and insurers often avoid liability claims by arguing that the injury was not caused by a defect in the equipment or that the injury should have been prevented through better management.

Recently, in the political arena, a bill expanding the liability of business owners for safety accidents in children’s playground facilities has been proposed, drawing attention to whether it will pass the National Assembly. On the 31st of last month, Rep. Im Hoseon of the Democratic Party of Korea introduced the “Partial Amendment to the Children’s Playground Safety Management Act,” which centers on this issue. The core idea is to shift the concept of liability from individual facilities such as swings and pools within children’s playgrounds to the entire space. The amendment changes Article 21, Paragraph 1 of the Children’s Playground Safety Management Act from “children’s playground facilities” to “accidents occurring in children’s playground facilities” to broadly define accidents.

The amendment also requires business owners to post proof of insurance enrollment so that parents can easily recognize it. If the business owner fails to post proof of insurance enrollment, a fine of up to 1 million KRW will be imposed.

In 2021, the insurance payout for children’s playground facility accidents by 13 insurance companies was 1,790.83 million KRW, which is only 37.6% of the total premiums paid (4,763.33 million KRW). Ms. Kim Miyeon (36), who is raising a 4-year-old child in Dongnam-gu, Cheonan City, said, “Recently, my child was injured while playing on playground equipment, but I had no idea whether I could formally demand compensation from the insurance company. If the manager does not inform us about insurance enrollment in advance, it seems difficult to find out on our own.”

There have also been recent cases where accidents related to children’s playground facilities led to lawsuits. The outcome recognized the manager’s liability for compensation. In September last year, 9-year-old A was playing on an abandoned trampoline in an apartment playground, fell, and broke a tooth. The resident who discarded the trampoline and the apartment residents’ representative committee were held liable. Judge Kim Jungwoo of the Busan District Court ruled that the defendants jointly pay A over 10 million KRW in compensation.